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Ian Gourlay

  • Posts: 5746
Franchise Fees
« on: September 11, 2007, 11:58:14 am »
Some Franchises are Royalty based others fixed fee.

Do you know the Royalty payments or Fixed Fees of

Chem Dry

Safeclean

Rainbow

Cleaning Doctor

Carpet Doctor

Home and Dry

Service Master Carpet Cleaning


Any Other.

murky

  • Posts: 627
Re: Franchise Fees
« Reply #1 on: September 11, 2007, 03:03:07 pm »
Ian

I understand that Servicemaster pay 10% on their domestic work ie carpets, rugs upholstery etc.

But pay up to 25 or 28% on Insurance based work because their head office gets it for them.

Murky

Mike Halliday

  • Posts: 11578
Re: Franchise Fees
« Reply #2 on: September 11, 2007, 05:23:55 pm »
5 years ago (I beleive)  it cost 23k for a Chemdry franchise, don't know what further fees they pay.

mike
Mike Halliday.  www.henryhalliday.co.uk

Paul Brennan

  • Posts: 13
Re: Franchise Fees
« Reply #3 on: September 11, 2007, 06:13:43 pm »
Prior to coming to my senses, I paid 11% ongoing to Safeclean.

This was subject to a minimum fee which meant that whether you were doing well, or more likely not, they squeezed you dry!

On top of this, you had already paid up to £20000.
Paul

Andy Foster

  • Posts: 938
Re: Franchise Fees
« Reply #4 on: September 11, 2007, 06:42:16 pm »
I am just wondering why you would be looking at a franchise when you have all the support and advice you could possibly want right here?

Just wondering

Andy

JS2

  • Posts: 264
Re: Franchise Fees
« Reply #5 on: September 11, 2007, 07:01:53 pm »
Ian

Whilst they're not on your list, I believe Bone Dry ask for £200 per month.

Regards

Pete (JS2)

bennymon

  • Posts: 816
Re: Franchise Fees
« Reply #6 on: September 11, 2007, 07:49:48 pm »
chemdry pay a fee 0f about £290 per month plus another £290 must be spent on solutions

John Kelly

  • Posts: 4461
Re: Franchise Fees
« Reply #7 on: September 11, 2007, 08:19:09 pm »
Most franchises are based on licenses. The ChemDry license is an area containing 60,000 people. They reckon you can turnover £54,000 on one license just carpet cleaning.
Your fees apertain to one license only. You need multiple licenses to make it pay.
Don't know much about the other ones. The biggest bugbear with a franchise is when they say jump, you jump. Then theres the extras to pay for, digital pens for each technician, about 250 quid + so much per month maintenance contract, trackers for vans.
Some people are happy working this way, me, I prefer my freedom to do what I want. One lesson I have learnt, never put all your eggs in one basket. Then if something goes tits up you have other income streams to keep you afloat.

Andy Foster

  • Posts: 938
Re: Franchise Fees
« Reply #8 on: September 11, 2007, 09:17:46 pm »
I totally agree John.
When I was starting up, I looked at franchises and am SOOOOOOOOOO glad I went on my own.  If I had gone down the franchise route, I would have been limited to the services they allowed me to provide and the areas they allowed me to work in.
This would have meant  that my business would be less than half the size it is now and during the 'building' phase of the business, I would have been paying over fees and not earning a fat lot.
With the advice from this forum and the freedom to take opportunities as they come up and diversify I don't see why anyone would willingly take on a franchise these days.

Just my twopenneth.

Andy

Jaybee

  • Posts: 49
Re: Franchise Fees
« Reply #9 on: September 12, 2007, 01:24:23 am »
Why buy into a franchise in carpet cleaning? What fool would do that? I could understand if you wanted to go into catering you may consider a Subway franchise for example - I mean everyone eats and everyone has heard of Subway therefore you make money on their brand.

Stop 100 people on the street and ask how many of them have heard of Subway and how many of them have heard of ANY carpet cleaning company, I am guessing your results would be pretty conclusive to the fact that franchises have no place in carpet cleaning i.e. only a numpty who needed his hand holding through every stage would need to be part of a franchise.