Ian101

  • Posts: 7887
Are window cleaning franchises too cheap ??
« on: January 11, 2016, 05:47:16 pm »
Never actually bought or sold a franchise for window cleaning so my figures a little bit guess work / here say

however I think most tend to sell the licence for circa £9000 + 20% of the supplied turnover plus the franchisee needs a decent van.

Been looking at what an oven cleaning franchise charge which is £15000 +vat plus a monthly lease for van £200 ish ?? plus no doubt a % of turnover

Chipsaway ... car paint repair people ... £30000 + VAT !!!! then a van on top of at £350 ..... then 10% of turnover for royalty and 2% for advertising.

prob more expense if  I looked into it further.

I think I will be going down the avenue of the full exterior cleaning service windows, pressure washing, upvc, connies, gutter cleaning.

Plan to be semi retired in 7 years at 55 and convinced for me that franchising is the way ahead as maybe too old to grow a self managing business within 7 years.

NONE of them supply a guaranteed customer base from day 1.

only reason for looking at other franchises is for a feel of what other companies sell their franchises for as this is the route I will be going later this year after a few convos with Vin over last 18 months


Smurf

  • Posts: 8538
Re: Are window cleaning franchises too cheap ??
« Reply #1 on: January 11, 2016, 06:09:24 pm »
The question is really why would anybody want to buy a window cleaning franchise in the first place beats me when it's so easy to start up on your own  ???

benny donnelly

  • Posts: 204
Re: Are window cleaning franchises too cheap ??
« Reply #2 on: January 11, 2016, 06:14:50 pm »
The question is really why would anybody want to buy a window cleaning franchise in the first place beats me when it's so easy to start up on your own  ???

I see what your are saying but the model where a customer base is given to the franchasiee is a major selling point theres someone on here i think who runs that model, its the only USP you would have really as its a very low barrier business to start

Ian101

  • Posts: 7887
Re: Are window cleaning franchises too cheap ??
« Reply #3 on: January 11, 2016, 06:15:50 pm »
The question is really why would anybody want to buy a window cleaning franchise in the first place beats me when it's so easy to start up on your own  ???

lots of reasons more than likely the same as some bloke buying into oven clean franchise / chipsaway franchise these can all be set up without buying a franchise.

personally number 1 reason would be self employed with income from day 1

Ian101

  • Posts: 7887
Re: Are window cleaning franchises too cheap ??
« Reply #4 on: January 11, 2016, 06:17:33 pm »
The question is really why would anybody want to buy a window cleaning franchise in the first place beats me when it's so easy to start up on your own  ???

btw I think youre right but it wouldn't stop me taking someones money for a franchise ... however prob would tell them they could do it on their own but franchise easier and quicker

colin bird

  • Posts: 1152
Re: Are window cleaning franchises too cheap ??
« Reply #5 on: January 11, 2016, 07:08:58 pm »
The question is really why would anybody want to buy a window cleaning franchise in the first place beats me when it's so easy to start up on your own  ???

Totally agree

Spruce

  • Posts: 8366
Re: Are window cleaning franchises too cheap ??
« Reply #6 on: January 11, 2016, 07:18:50 pm »
The question is really why would anybody want to buy a window cleaning franchise in the first place beats me when it's so easy to start up on your own  ???

Smurf, you are right.

There will always be a need to supply a guaranteed, running business to someone who doesn't feel adept at starting one themselves from scratch.

One of the big challenges appears to be knocking on doors looking for and building a customer base. They will do everything to avoid doing that. They want to build fancy websites, pay someone to design and distribute eye catching leaflets, employ someone to post them through letter boxes, promote business on Facebook, pay a canvasser, everything except door knocking themselves.
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johnwillan

  • Posts: 313
Re: Are window cleaning franchises too cheap ??
« Reply #7 on: January 11, 2016, 08:09:54 pm »
I thought the same myself, however several years in I realise it's all about the intangibles, support, camaraderie, knowledge, branding, I.T, marketing, etc, etc.

Yes customer base is important but it won't keep them in the long run, you do need to provide value.


johnwillan

  • Posts: 313
Re: Are window cleaning franchises too cheap ??
« Reply #8 on: January 11, 2016, 08:13:31 pm »
In answer to Ian's OP I dare say it comes down to supply and demand, no doubt all the franchises mentioned started out with a lower initial sales price in fact most probably offered pilot schemes FOC.

Jim Penman (Jim's Mowing) states that the quality of franchisee improved dramatically when the initial fee was increased.

 

Smurf

  • Posts: 8538
Re: Are window cleaning franchises too cheap ??
« Reply #9 on: January 11, 2016, 08:39:22 pm »
I'm betting the franchises soon learn they have made a big mistake after forking out a pot load of money then still have to give a percentage to a third party indefinitely for doing next to bugger all...  Sod that  ;D

Cocept20 springs to mind  http://www.concept2o.com ::)roll

Are people realy that gullable   ;D
http://www.concept2o-newstart.com/nutshell.htm

Concept2O™ window cleaning is a fantastic opportunity with over 95% of business being repeat in nature. The high income is predictable, month after month, year after year, so there is no endless marketing and hence the business is very low stress.

Of course, this means in turn that the business is totally flexible; you can grow entirely at your own pace, with predictable ratios and enhanced business systems.

The Concept2O™ business model takes advantage of two major market dislocations, the 2005 Work at Height Regulations, (which state work must be carried out from the ground if it is reasonably practicable), and the advent of pure water window cleaning technology.

The benefits to members of our new start family are that you join an established industry, carrying out an immeasurably superior service compared with traditional window cleaning methods, all at no additional cost to the clients and far quicker for the operator than previously possible.

Standard issue is the Concept2O™ brand and the use of the very best quality equipment available anywhere in the world, totally unique to Concept2O™ owner operators.

ChumBucket

Re: Are window cleaning franchises too cheap ??
« Reply #10 on: January 11, 2016, 09:04:43 pm »
It does work as there a people out there doing it, however I have always felt it to be a limited scope business as in, a handful of franchisees is the very best you can realistically achieve in most cases. From the franchisees prospective, I would be concerned by being handicapped with a 20% price disadvantage to my competitors from the outset.

For me it's one of those things that will work in some cases and in some areas but not universally.

Mick Kent

  • Posts: 1380
Re: Are window cleaning franchises too cheap ??
« Reply #11 on: January 11, 2016, 09:48:48 pm »
I had quite a few franchisee's call me to canvass for them. All of them want to get out of the franchise and realise that buying work for x2 instead of buying into a franchise for over 8k and then handing over 20%/25%  of there earnngs back to the franchise owner.

For 4k a month of work will cost a franchisee 1k a month on top of the 8k  buying into the franchise, so 20k in first year and 12k a year each year after that.
When they realise that they can build work them self for free or pay a canvasser X2 and save 10's of thousands they will soon realise that the grass is actually much greener on the other side unless your a total mug. Its great if they are a mug for the franchise owners but in reality anyone with there head screwed on will soon realise just how easy it is to go there own way, its window cleaning afterall nothing hard about it.

8k buying into a simple window cleaning franchise id say is a lot when you could spend that 8k and have 4k a month every month of your own without paying 1k a month back to the franchise owner.

Franchised round- 1st year cost of 20k
Then 12k a year in royalties whilst your working someones franchise round that you will never outright own.
Buying a canbassed round- 1st year 8k from buying the work
Then 0k a year in royalties
Buying a round at X5 would be better 20k 1 off payment then again no royalties to pay the round owner.


Just my view on it.




NWH

  • Posts: 16952
Re: Are window cleaning franchises too cheap ??
« Reply #12 on: January 12, 2016, 05:55:05 pm »
The question is really why would anybody want to buy a window cleaning franchise in the first place beats me when it's so easy to start up on your own  ???
yeah if your willing to clean anything for very little,it takes years to build something of any value,I think when people talk about generating work quickly the vast majority of it is stuff most established WC's have dumped.

ChumBucket

Re: Are window cleaning franchises too cheap ??
« Reply #13 on: January 12, 2016, 06:19:27 pm »
The question is really why would anybody want to buy a window cleaning franchise in the first place beats me when it's so easy to start up on your own  ???
yeah if your willing to clean anything for very little,it takes years to build something of any value,I think when people talk about generating work quickly the vast majority of it is stuff most established WC's have dumped.

So how come the franchisor can do it then?


NWH

  • Posts: 16952
Re: Are window cleaning franchises too cheap ??
« Reply #14 on: January 12, 2016, 06:23:38 pm »
Because people that buy hose lock fittings show a lot of interest in it or someone has heard there is money to be earned at it. Why would you buy one have you heard of do you have any proof that anyone has made a go of 1 I have not 

Dave Willis

Re: Are window cleaning franchises too cheap ??
« Reply #15 on: January 12, 2016, 06:35:57 pm »
Works well for some, particularly anyone with a decent redundancy package needing work in a hurry. Vin (perfect windows) seems to have successfully gained franchisees and his prices are pretty high for window cleaning. Ian Lancasters Franchisees seem happy.
Some guys don't like canvassing others seem to have it handed to them on a plate when the family passes their business on whilst most of us had to start from nothing.

NWH

  • Posts: 16952
Re: Are window cleaning franchises too cheap ??
« Reply #16 on: January 12, 2016, 06:38:25 pm »
Anything I've ever read about this the target market has always been people who have been made redundant,unlike me who had it all handed to them on a platter of course.

Dave Willis

Re: Are window cleaning franchises too cheap ??
« Reply #17 on: January 12, 2016, 06:39:25 pm »
http://www.perfect-windows.co.uk/

I wouldn't call that crap work at their prices.

NWH

  • Posts: 16952
Re: Are window cleaning franchises too cheap ??
« Reply #18 on: January 12, 2016, 06:52:00 pm »
It all depends where your working,those prices are nothing special down south,there's chancers everywhere you'll get a leaflet put through a door on a £40-50 house for £20  without them even seeing the back.i don't know what the hit rate is on canvassing or leaflet dropping but I hear it's not good.

CleanClear

  • Posts: 14238
Re: Are window cleaning franchises too cheap ??
« Reply #19 on: January 12, 2016, 07:13:47 pm »
I've often wondered about Franchises, what happens come tax return time? For example, lets use "Ian Lancaster". One of his franchisees filling in his tax form answers the "what name do you trade as..?"   Ian Lancaster , yes ? Are you in a partnership ? Answer is yes, or sort of ?
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