Clean It Up

UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: Blackadder on January 20, 2017, 07:59:47 am

Title: Franchisee
Post by: Blackadder on January 20, 2017, 07:59:47 am
Morning guys, got a friend interested in franchising from me, he wants to earn £1,500 a month and I have a fully kitted out van worth £3,500 waiting to be used, what sort of fee would I be looking at taking from him at the start and then per month? I'm guessing that most franchises will take anything from 15%-25%? Per month?
Title: Re: Franchisee
Post by: AuRavelling79 on January 20, 2017, 08:55:05 am
Morning guys, got a friend interested in franchising from me, he wants to earn £1,500 a month and I have a fully kitted out van worth £3,500 waiting to be used, what sort of fee would I be looking at taking from him at the start and then per month? I'm guessing that most franchises will take anything from 15%-25%? Per month?

20% seems to be about what happens.
Title: Re: Franchisee
Post by: sunshine windows on January 20, 2017, 09:10:31 am
For £1500 worth of work I've charged £7,500 but the fee included kitting a van out for them. As you already have the van with system worth £3,500ish I'd probably charge £10k and hand the van over to them to get started.

20% ongoing royalties
Title: Re: Franchisee
Post by: robert mitchell on January 20, 2017, 09:17:13 am
For £1500 worth of work I've charged £7,500 but the fee included kitting a van out for them. As you already have the van with system worth £3,500ish I'd probably charge £10k and hand the van over to them to get started.

20% ongoing royalties

Why 10 grand ?  Surely its all about the regular income rather than making a profit on the sale , and its a friend he is franchising too .......seems very steep charging 10 grand for a £3500 van .  I would go for £5000 personally.
Title: Re: Franchisee
Post by: sunshine windows on January 20, 2017, 09:44:09 am
It's not about making a profit. I've charged £7,500 with the van for around the same amount of start up work.

He's including the van and system. My franchisee provide the van and I kit them out with the franchise fee.

Working on his system and kit being valued at around £1k second hand and the van being around £2,500. I think £10k is a fair amount
Title: Re: Franchisee
Post by: robert mitchell on January 20, 2017, 06:53:20 pm
It's not about making a profit. I've charged £7,500 with the van for around the same amount of start up work.

He's including the van and system. My franchisee provide the van and I kit them out with the franchise fee.

Working on his system and kit being valued at around £1k second hand and the van being around £2,500. I think £10k is a fair amount

If the van is worth £3500 and he charges £10000 initial fee thats an instant profit of £6500 , The point of the initial fee is to cover the cost of kitting out there van, with maybe a little profit for your trouble/time .............i understand Vin from perfect window sells the franchise without taking any initial profit , just charges them what it costs for the equipment .
Title: Re: Franchisee
Post by: Mick Kent on January 20, 2017, 09:28:04 pm
10 grand is cheap compared to what Ezy clean, i believe they charge 15k and take 20 percent royalties.
The 15k fee doesnt include a van which needs to be self sourced too.
Title: Re: Franchisee
Post by: duncan h on January 20, 2017, 09:33:52 pm
When I was 19 I took a franchise as a milkman for the co-op.
I had to sorce my own pickup
Pay a lump sum for the business
I was tied to buy from them and they charged weekly fees. Same as paying royalties.
Title: Re: Franchisee
Post by: harry willett on January 21, 2017, 06:34:43 am
still makes other franchises look very expensive looking at oven cleaning and what you get for it
Title: Re: Franchisee
Post by: 8weekly on January 21, 2017, 07:05:36 am
still makes other franchises look very expensive looking at oven cleaning and what you get for it
Yeah but window cleaning doesn't have the glamour of oven cleaning.
Title: Re: Franchisee
Post by: sunshine windows on January 21, 2017, 01:31:04 pm
For a £10k fee, I tend to start mine on anything between £25-£30k of initial work, so in effect I'm taking a loss of up to £24k a year. The extra franchise money left over from kitting them out helps with the initial loss of income for me until I build up again. Not worth doing it if you're going to give it away for free.
Title: Re: Franchisee
Post by: Og on January 21, 2017, 05:26:25 pm
Wonder how much solar steve's franchise is?
Title: Re: Franchisee
Post by: Scrimble on January 22, 2017, 11:28:02 am
still do not see the point, far more profit to be made from employing
Title: Re: Franchisee
Post by: p1w1 on January 22, 2017, 11:31:38 am
still do not see the point, far more profit to be made from employing
so it should be ...as it would be far more hassle as well that comes with it.
Title: Re: Franchisee
Post by: sunshine windows on January 22, 2017, 12:55:46 pm
still do not see the point, far more profit to be made from employing

Whilst I completely agree that employing would be more profitable, you're opinion of franchising not being worth it is ridiculous. Far less hassle than employing, without the need to be in constant contact with staff on a day to day basis. There are so many benefits of franchising over employing, it as stated, yes less profit.
Title: Re: Franchisee
Post by: Tony dunmall on January 22, 2017, 04:59:20 pm
side question

for those of you that franchisee

what's your preferred methods for growing the business at a sufficient speed,  leaflet drops door,knocking canversers or other methods
Title: Re: Franchisee
Post by: sunshine windows on January 22, 2017, 10:03:58 pm
Last time I did a leaflet drop was 45,000 in Feb 2015. The website gets us most of our new work along with subscription to checkatrade
Title: Re: Franchisee
Post by: Scrimble on January 23, 2017, 12:31:01 pm
making a loss of 24k in the first year is more ridiculous than my statement, but if it works for you then good luck with it but business is all about profit