[MNWC]

Hi there.

I have recently taken on a franchisee and all is going well. My franchisee is now full and will be looking at franchisee number two.

My question is, is there a way that franchisee No 1 can take on an employee or have a helper in his van ?

We have both been thinking about this and cant make it work ie once he has paid the employee say £8/9ph then taken out the % fee (i charge 15%) there is little left for himself.....

Maybe this is a problem you have encountered ??

Your advise would be very much appreciated.

[Smudger]

I would have thought that a franchisee can employ as many people as he wishes, you should encourage it, the bigger he gets the more you get.

I think it's highlighted a problem at £8 p/h and your 15% the work is either not of sufficient value or your franchisee is not quick enough an employee should be around 25to 30% cost of the turnover so with your 15% that leaves the franchisee 55% - is that enough, probably not.

That's where your cut will stunt the growth of a franchise , alternately make him a second franchise where he sends an employee out on his own.

Darran

[Paul erithwc]

Doesn't he become a master franchisee and sell your franchise package and take a percentage of your 15-20 %fee

[David Kent @ KentKleen]

Paul has hit the nail on the head. Your franchisee needs to be looking at investing in a larger area off you to build up his own fleet of vans as a master franchisee. You take a lot smaller percentage from this area, but he does the building work with a little help from you. Hope that helps.