Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: TomCrowther on June 01, 2015, 07:57:35 pm
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This may be one for Ian.
What happens when a Franchisee retires? Let's say he has worked as a Franchisee for ten years, is now 60 and decides to watch tv all day instead.
Does he just Han the round back an you find another?
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That's one option. The franchise agreements last for five years normally. Once someone moved into their mid-fifties I'd discuss retirement options at every renewal. That way it could be shortened (or slightly lengthened) to hit their desired retirement date. If they wanted to retire on the relevant date, it'd pass over to a new franchisee (though I'd try to phase it over if possible, as starting cold into a full round would be a killer)
However, two of my guys see themselves going on for a long way past normal retirement age, winding down as time passed. After all, as one of them has pointed out, you'd have to be in a bad way not to be able to do a couple of mornings a week while in your seventies and have a cracking income (for a retiree). If they wanted to do that I'd do everything I could to make it work.
Hope that helps.
Vin
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Hi Tom
It's theirs to sell to another franchisee so all being well they should at least see a return on their investment, the franchisor is not obliged to sell it on their behalf but it would be wise to assist and make it as smooth as possible.
Hope that helps
John
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Two conflicting views ???
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Cheers Vin/John.
So the Franchisor only sells the Franchise once. The Franchisee can sell at a future point and the Franchise continues with the new guy.
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Two conflicting views ???
Indeed. It would be odd if there weren't more than one way to approach a situation like this.
Vin
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Cheers Vin/John.
So the Franchisor only sells the Franchise once. The Franchisee can sell at a future point and the Franchise continues with the new guy.
That's right, Tom. In the Agreement there is a paragraph that sets out the Franchisee's right to sell his business. One of mine has just retired and sold his Franchise. He pockets the proceeds of the sale (less any expenses I've incurred in the process and 10% of the sale price as my fee for managing the transfer). The new Franchisee is continuing to run the business with a new 3 - year Agreement.
If the retiring Franchisee were unable to sell his business (or just didn't want the hassle) he could simply walk away, then the Franchise reverts to me and I can sell it and retain the fee myself.
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Down to the customers who cleans there windows not the Franchor or Franchise
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Down to the customers who cleans there windows not the Franchor or Franchise
who said it wasn't down to the customer who cleans there windows??
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Down to the customers who cleans there windows not the Franchor or Franchise
who said it wasn't down to the customer who cleans there windows??
The customer? They'd p their pants at the notion of a poxy windie actually having a franchise to clean 'their' windows ROTFL
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Down to the customers who cleans there windows not the Franchor or Franchise
Oh no! I only got into franchising because I thought that meant I could force customers to use us. What'll I do now?
Vin
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Down to the customers who cleans there windows not the Franchor or Franchise
Oh no! I only got into franchising because I thought that meant I could force customers to use us. What'll I do now?
Vin
;D
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Down to the customers who cleans there windows not the Franchor or Franchise
who said it wasn't down to the customer who cleans there windows??
The customer? They'd p their pants at the notion of a poxy windie actually having a franchise to clean 'their' windows ROTFL
What tosh!!
I've often been asked if I'm a franchise , makes no odds to the customer at all, with U.S. They may get one of five different people clean their windows, never been told that unacceptable by a customer yet..
Darran
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Cheers guys.
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All the customer cares about is a regular reliable service. Whether that's from a sole trader, employee or franchisee doesn't matter in the slightest.
In answer to the original question, I would try my best to sell an existing franchise, by splitting it in 2 (if a fairly full round) to maximise return for the retiring franchisee and to ease the pressure on the new starters.