They thought by parting with 20k they were buying a job and NOT buying knowledge that would allow them to own and operate their own business.
Why on earth would you want to part with money for someone to tell you how to clean an oven???
You've answered your own question there, David. You're not parting with money to be told how to do the job (cleaning an oven) although the package should contain comprehensive training to do just that. What you are buying is supposed to be the franchisors tried and tested business methods which, if properly followed, should guarantee success. Some franchisors will also guarantee initial income as they are so sure of the quality of their system.
The value of the franchise is in the quality of the business know-how provided, especially the marketing. If an oven cleaner is only getting "one call a week" then either he is not following the franchisors marketing plan, or the plan is no good.
The first rule when investigating any franchise is to talk to existing franchisees, and that means choosing for yourself which ones to talk to. If the franchisor gives a list of 'approved' franchisees, run away. You should get a full list of every franchisee in the organisation, and make your own choice.
There will inevitably be those who do not, or cannot, implement the training and advice they are given, but if the system is good, there will be very few of these.
I agree to a degree Ian,
These are only my thoughts and personal experiences - most of these guys shouldn't be in business full stop. They expect the franchisor to provide them with work. The franchisors don't correct this misconception.
For 20k I could arrange my own marketing campaign for oven cleaning, set up a website, buy an accounts software programme, buy equipment, buy a vehicle, have unrestricted access to ALL areas....and try and fail until I find what works best in my area.
The idea of franchising has been numptyised in my opinion.
It used to mean buying into an established BRAND which was recognised and held in high regard (such as McDonalds or DHL). These days, it seems to be a bunch of chancers preying on people who have no idea what they're getting for their money. They honestly feel by parting with 20k they can sit back and the money will just roll in from the brand name.......most of these firms DONT have any brand apart from within the franchising industry. They spend more money advertising franchises than advertising their services to the paying customer....that alone should start the alarm bells ringing.
I can think of half a dozen of these firms off the top off my head. I wont mention them as the rest of the franchise fee seems to go towards shutting down websites which dare to question their model.
I would ask one question - if its so good an opportunty, why are they still selling franchises? Wouldnt they have all been sold by now?