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Dan marsh

  • Posts: 94
Franchise
« on: October 11, 2020, 07:17:43 pm »
Hi all , im awear this question may have been asked before so apologies . I'm considering franchising my busines but can I do this being a sole trader ? I would I need to go Ltd ? I plan to still have control of the customers ie text an payments but transfer the money each week to the franchisee . Do any of you guy's do something similar to this ? Thanks in advance

Stoots

  • Posts: 6211
Re: Franchise
« Reply #1 on: October 11, 2020, 07:30:22 pm »
Speak to Ian Lancaster or Vin @perfectwindows

Both full of information on the topic.

Ched

  • Posts: 441
Re: Franchise
« Reply #2 on: October 11, 2020, 08:21:52 pm »
Hi all , im awear this question may have been asked before so apologies . I'm considering franchising my busines but can I do this being a sole trader ? I would I need to go Ltd ? I plan to still have control of the customers ie text an payments but transfer the money each week to the franchisee . Do any of you guy's do something similar to this ? Thanks in advance
Not really sure that would be classed as a franchise. Normally someone pays a fee to gain a franchise licence, training, system, branding etc. Then each month they pay a fee usually a % of turnover to the franchise owner.
With you taking the money and controlling the customers I think HMRC might see that as employing people by the back door to avoid tax!
Might be worth chatting with an accountant or maybe even a solicitor who has experience in franchises.

Always shining

  • Posts: 124
Re: Franchise
« Reply #3 on: October 12, 2020, 10:15:36 am »
Morning Dan
Where are you based?
Thanks
Paul

ok cleaning

  • Posts: 649
Re: Franchise
« Reply #4 on: October 13, 2020, 07:49:03 pm »
I think the first question should be as how long have you been in the game your self  that you have decided to go that way

Dan marsh

  • Posts: 94
Re: Franchise
« Reply #5 on: October 15, 2020, 08:14:06 pm »
Morning Dan
Where are you based?
Thanks
Paul

Hi Paul I'm in Bournemouth , Dorset

NWH

  • Posts: 16952
Re: Franchise
« Reply #6 on: October 16, 2020, 11:35:52 am »
What’s the point in buying into a franchise unless it has a well known brand and reputation,if you are very well known in an area and people are used to seeing your van etc then maybe but just getting a load of work and getting someone to do it and give you a percentage is not what I would call a good investment for them,when you buy into a franchise you are buying into a brand ie on a obviously bigger scale KFC McDonald’s. 

NWH

  • Posts: 16952
Re: Franchise
« Reply #7 on: October 16, 2020, 11:39:54 am »
Tbh I wouldn’t see that as an investment if I was looking at it and that’s why these people don’t last and go out looking for their own work once they are up to speed,for it to be a proper franchise everything should be provided and they should be promoting your brand.

Stoots

  • Posts: 6211
Re: Franchise
« Reply #8 on: October 16, 2020, 02:11:55 pm »
What’s the point in buying into a franchise unless it has a well known brand and reputation,if you are very well known in an area and people are used to seeing your van etc then maybe but just getting a load of work and getting someone to do it and give you a percentage is not what I would call a good investment for them,when you buy into a franchise you are buying into a brand ie on a obviously bigger scale KFC McDonald’s.

Depends on the franchise model.

Most will give the franchisee unlimited work so it make no difference to them if you are a McDonald's level brand or not.

TomCrowther

  • Posts: 1965
Re: Franchise
« Reply #9 on: October 16, 2020, 02:52:12 pm »
Like Ched said above. The franchisee has to be a completely separate entity and they take payment then pay you a %. Tax man would be all over you otherwise.

NWH

  • Posts: 16952
Re: Franchise
« Reply #10 on: October 16, 2020, 03:29:01 pm »
You aren’t selling a franchise you are just taking a % for him working your business,if it was a proper franchise you’d have to supply uniforms training sometimes a vehicle let’s not look at this as franchising eh 🤣,more like I’ve got too much work to handle I’ll try and go down the I can save some Tax route.
The best way is to employ pay them a proper wage holiday sick pay the lot you’ll make more money and you’ll pay probably Vat but it’s a better way to build a business that you can keep an eye on,I wouldn’t trust the franchise route imo it’s the wrong type of industry I know people have done it and made a go of it but as I say you need to be at the coal face in this job to a certain extent.

NWH

  • Posts: 16952
Re: Franchise
« Reply #11 on: October 16, 2020, 03:30:19 pm »
You still working and franchising I’d like to hear the inland revenues views on this one.

NWH

  • Posts: 16952
Re: Franchise
« Reply #12 on: October 16, 2020, 03:31:32 pm »
What’s the point in buying into a franchise unless it has a well known brand and reputation,if you are very well known in an area and people are used to seeing your van etc then maybe but just getting a load of work and getting someone to do it and give you a percentage is not what I would call a good investment for them,when you buy into a franchise you are buying into a brand ie on a obviously bigger scale KFC McDonald’s.

Depends on the franchise model.

Most will give the franchisee unlimited work so it make no difference to them if you are a McDonald's level brand or not.
Why would I buy into a brand that wasn’t known or had a well known place in the market.

Stoots

  • Posts: 6211
Re: Franchise
« Reply #13 on: October 16, 2020, 04:32:32 pm »
What’s the point in buying into a franchise unless it has a well known brand and reputation,if you are very well known in an area and people are used to seeing your van etc then maybe but just getting a load of work and getting someone to do it and give you a percentage is not what I would call a good investment for them,when you buy into a franchise you are buying into a brand ie on a obviously bigger scale KFC McDonald’s.

Depends on the franchise model.

Most will give the franchisee unlimited work so it make no difference to them if you are a McDonald's level brand or not.
Why would I buy into a brand that wasn’t known or had a well known place in the market.

Why wouldnt you ?

It completely depends what the franchisor is offering

Big brand might be 30k buy in vs 3k buy in from a small company, big brand might make you generate all your own customers vs been supplied as many as you can handle.  whats the royaly percentages etc and what do you get for that .....

Theres so many variables to consider you cant just say that, well you can lol but you are not everyone, its just your daft opinion  ;D

NWH

  • Posts: 16952
Re: Franchise
« Reply #14 on: October 16, 2020, 05:26:29 pm »
What are you offering them that they can’t get on there own it’s window cleaning why wouldn’t they buy some work start to work it and build it up you’d have to be a fool,anyone who’s anyone have always started say part time and then realise it could be a good business so they knock doors or leaflet.
This is why after a while they go it alone they start off buying into your business because they know nothing about how it works and how simple it is or can be,as soon as they realise that all you are doing is the same via a website-leaflet dropping or poxy lead generation they will be off into the sunset and you’ll be left will a lot more work to service without someone servicing it,this is why employing works better you need to keep tabs on what’s happening or you’ll just get robbed legal contract or whatever to some people that means nothing.
Can you imagine having the hassle of trying to take someone to court because they’ve convinced customers to drop you and go with them when the customer may actually prefer them,good luck like I’ve said it can work but you have to be very very lucky and careful who you let have a little bit of you’re world,I’d never do it employing they are covered and so are you and employing you’ll earn more long term when they are up to speed.

NWH

  • Posts: 16952
Re: Franchise
« Reply #15 on: October 16, 2020, 05:37:58 pm »
How long do you think it would take once they know what they are doing before they have a lightbulb moment and think sod paying you X every month lol,it’s a cynical viewpoint but it’s human nature I’m afraid in window cleaning.
I’ll tell you a true story 20 years ago I bought some work and I had someone do it for me on a 6 weekly basis,he did the work and regardless of him collecting any cash in them days I paid him what we agreed so whatever he got his money he just made a note of who hadn’t paid,this is no word of a lie and it happened with 2 separate individuals after I paid them their cut they gave me a list of who hadn’t paid,when I went round the next time and I did them and asked for 2 cleans they all informed me the individuals in question had gone back and collected what I was owed without telling me 🤣🤣.
Window cleaning is an easy way to earn very good money if they’ve half a brain and they’ve any ambition they’ll go it alone,you have to be close by to  a certain extent keeping an eye on things or at least they have to think you are when you employ it’s easier to do this than it is going down the glorified rent a round route.