[NWH]

When you've got a Neon brush the worlds your oyster.

[capn sparkle]

That would do my head in, but I agree its not worth charging the franchisee.

Will you pay 12% or 20%?

What royalty percentage do you take from the franchisee?

Thanks
Tom

We'll go on the flat rate as long as we can.

Royalty is 20%.

I'm sure PW will correct me if I'm wrong, but I think he's already gone past the point where the simpified VAT (12%?) is an option.

The number quoted is the sum of all the franchisees.

My VAT calculation is based on royalties received and the cleans I still do, so is much lower than £250K (and is currently below the VAT limit).  The franchisees' turnover won't exceed the limit so they won't need to charge VAT.  Hope that makes sense.

Vin

You don't have to lump your turnover with the franchisee royalties though. A franchise business is totally different to you as a window cleaning business.

Just thinking about things, say total royalties is £100,000. Minus 12% = £88,000. Say £5000 expenses (could be more as not sure what you spend marketing etc or if franchisee payment covers that) So thats £83,000. Deduct corporation tax at 20% leaves approx £66,000. Its still good money for not having to do the work, but its not a lot compared to the value of the work.

I'm still undecided which route to go down. Hopefully you've got a kettle in your office Vin as I might have to visit you for a chat one day 

Think there might be a queue Tom! Black coffee one sugar.

@ Vin Fantastic news, well done.

[Joey Eastwood]

Well done, but I can see how its been taken the wrong way, I mean starting the topic with a figure for a start is a bit show-offish 

[AuRavelling79]

Well done, but I can see how its been taken the wrong way, I mean starting the topic with a figure for a start is a bit show-offish 

Says the guy using a picture of his "rather attractive girlfriend" as his avatar! 

[Nick Day]

If you own the work, I am still trying to work out who's accounts it is held in.
To avoid VAT on the total income, it would have to be held in segments by the "franchisee's", in that case they own them and you cannot get them back and are paying you 20% ( a high franchisee management fee) for ownership.
If you own it, and are hiding it in the "franchisees" accounts, that sounds like fraud.

[Perfect Windows]

If you own the work, I am still trying to work out who's accounts it is held in.
To avoid VAT on the total income, it would have to be held in segments by the "franchisee's", in that case they own them and you cannot get them back and are paying you 20% ( a high franchisee management fee) for ownership.
If you own it, and are hiding it in the "franchisees" accounts, that sounds like fraud.

You've asked this before and it was answered before:

http://www.cleanitup.co.uk/smf/index.php?topic=200395.msg1759174#msg1759174

Vin

[Perfect Windows]

Just home, booked another couple of jobs and Aworka tells me that the combined annual value of all our franchisees' rounds has just passed a quarter of a million quid.  Which is nice.  As of May 4th 2010, our total round value was zero.

The (virtual) beer's on me.

Vin

May the 4th be with you? 

Coincidence, honestly - didn't notice till the first anniversary.

If I'd gone out of business the next day would it have been "the revenge of the fifth"?

I'll get my coat.

Vin

[Nick Day]

Are you serious...that was an answer?

[Perfect Windows]

Are you serious...that was an answer?

I assumed you might read down the thread a little until you got to the answer but here it is:

http://www.cleanitup.co.uk/smf/index.php?topic=200395.msg1759196#msg1759196

Vin

[NWH]

What your ending up with at the end of the day m8 your no Better off than lots of people on here,it looks better on paper but that's about it. We have had this argument before and if you can b motivated enough it can be done far in excess in the figure quoted but it's done by employing and having upwards of5-6 vehicles,what would happen in a court if you say your getting a percentage of work done but all the new work your getting people you are owed 20%,surely it won't take long before all those extra 20%s push you over the VAT limit. What are you going to say to the inland revenue when they say who owns what. So what your saying is then is that it stops here your earning what you say and you won't at any point be earning any more.

[Nick Day]

So you've  got £250.000 of income. got some individuals to sign  contracts to call themselves Franchisees to divvy up the total, and pay you for the privilege. Good luck on that one.
.

[Rich Wilts]

£250,000 turnover. I guess that's motivation  and focus for you, well done. More than me, focus and mojo I mean. Good going. Well done.


I don't if it's just me, it probably is. But when some people talk about having a franchise they refer to the franchisees as 'mine' or 'my franchisees'; like they own them or they're their little baby.  As if its a status symbol or has some sort of personal qudos. Strange.

[Walter Mitty]

Each to their own. 

It was a major milestone for me and I wanted to share it with you all; even my own, my very own personal stalker, Cumbucket.

Have a nice day!

Vin

Ha ha!  Great response.

[Roberto Smith]

Thats pretty impressive in just over 5 years. How do you get most of your customers? flyers, canvasing?

[8weekly]

That is good going. Well done.

[sunshine windows]

.  Thats pretty impressive in just over 5 years. How do you get most of your customers? flyers, canvasing? 

Don't you know, leaflets don't work! 

Couldn't resist 

[Smurf]

.  Thats pretty impressive in just over 5 years. How do you get most of your customers? flyers, canvasing? 

Don't you know, leaflets don't work! 

Couldn't resist 

Hi Lance, speaking of enquiries did you get a call from an estates manager this morning for a large country house?

[Scrimble]

be better if that 250k worth of turn over was actually yours

[ChumBucket]

be better if that 250k worth of turn over was actually yours

It would be even more impressive if we knew what combined "value" actually meant? (and by this stage, believe it)  Already achieved? Theoretical potential? It's pretty meaningless, particularly given that it's from a known braggart

For instance, I recently picked up a monthly (large) domestic @ £125. It takes me 2.5 hours. Now, if I filled my round with those stats I could potentially be on £124,800 on my own.

So, I could, if I was also suffering from Narcissistic Personality Disorder, create a thread titled "£124,800 on my own". But of course, I would never do that and I think anyone with half a brain would understand why.

[Micky Barber]

We'll done vin.

I work all day every day and av never turned over that much in a year, one day al hit that quarter of a million mark tho ........ One day, just not yet tho 

If you posted saying u was looking for work and struggling for money more people would be sympathetic with there posts. It just seems that if post suton wanting to share your good experience and let others who are interested know how things are goin, it turns a lot of peoples eyes green .......

Keep goin vin

That's not the case at all.
I couldn't care less about how well others are doing and I certainly don't get envious.
Let's face it, once you get your business off the ground its very easy to go large, just about everyone here could do it if they wanted.
I'm absolutely full to the brim with work. How much money and time have I invested in advertising my business in the last 2 years....£0.
Yet I continually gain new work through recommendation and being seen.
Hire some canvassers, spend some money on advertising, accounting etc, doesn't take that much of an IQ or hard work to really grow a window cleaning business further. Most people just choose not to, for whatever reason.

I think the thing that annoys some, myself included, about these type of posts is that the people that write them tend to only talk about themselves and how well they are doing, and come across as very vain and arrogant.
The phrase, 'know one likes a showoff' creeps to mind.

Yet if you look back at these peoples posts, once upon time they were asking for help, offering others help where they could and seemingly normal, friendly guys.
As there business has grown, they seem to have become narcissistic, offering little help or advice to others anymore and only posting about 'themselves' and how well they are doing, whilst seemingly perched on their golden throne looking down at the rest of us.

I have a record day planned this Sunday, £600 job booked in which will take me 1 day on my own. (Seriously)
Maybe I should start a post about it, take some pictures, write my own window cleaning book named 'a fools guide to picking up easy overpriced work'.
But really, does anyone really care about MY business? Will anyone buy my book?
No on both counts me thinks.

Good post