[jon777]

anyone know what kind of % franchisees have to pay to the main franchiser. (chem drys etc)

[Shaun_Ashmore]

CD's is a fixed fee based on what you are buying from CD regards just carpet cleaning or cleaning and insurance also based on how much chemical you will buy from them in an agreed month ie you say £200 month the fee is set high than say £300 of chemical a month also if you buy an extra area the franchise royalties are not double just a percentage.

But you will have extras to buy later, when a new machine comes out like the powerhead for your HWE then you have GOT to buy it in a said time scale and when the new TM with comes you will have to buy that also and this IS on it's way AND will be extra to your initial franchise fee!

It's not all doom and gloom as I believe that the insurance work would pay for the royalties easily.

I also forgot to tell you that CD will take 20% of the invoice cost on work given to you by them ie insurance or contracted work.

Shaun

PS no I am not CD and never have been, just know.

[George-Reid]

Rainbow take 9% of turnover after deducting sub contract costs and another  2% for national advertising.
Cheers

George

[jon777]

Thanks,  i wonder if there is any resentment about this after the frst year or two.

The thought must go through there head at some point that there lining someone elses pocket, even though they accept it in the beginning.

[24-7 S C Services]

Hi Hunts

I have had experience as ops manager for a Service Master Franchise - I cannot recall what the owner thought of it, however, I can remember chasing insurance companies for up to 12 months and longer to get payment of them.

I have also worked in sales for on of the largest Contract Cleaning Contractors in the world. My experience from this was, within 3 years 85% of the franchise owners went bankrupt. The only person benefiting was the owner of the Master Franchise.

Personally I would stay away from Franchising, even though the odd person probably 1 in every 50 might make a good living out of it.

Oh, I do have a copy of a Carpet Cleaning Operator/ Owners Manual (not service master) if anyone is interested.

Andrew

[paul bruce]

Now I know why most  franchisers have to charge such high rates.
I have heard Chem dry offer a gold,silver or bronze cleaning package all priced  ( correct me if i am wrong) in the region £300 -£600.May as well buy a new carpet.

[bennymon]

hi folks chem dry charge £267inc vat per month and you have to buy about £250 worth of solutions per month

[eco freindly. peoples champion ron .sherlock]

whatever you have to pay for work.through a franchise you could be using to pay for your own advertising to give you the work .without having to pay any% of revenue. it is ideal for those that are unable or perhaps have not the knowlegge to obtain work and feel that an umbrella over you helps. sory to say is fact that a considerable amount of franchises go down the chute within 3 years.you might go down the chute anyway so why pay huge upfront and ongoing fees. >:(THE PEOPLES CHAMPION FENG SHUI RON. :

[Kev Loomes]

Franchisor's are a complete rip off. One franchisor charges 11% of turnover & dont give a crap if you go bust or not, cos they sell it on again and make more money.

They laugh all the way to the bank. You have to pay for everything - your own advertising, the lot. Even the liability insurance is vastly inflated. As for insurance work, dont make me laugh- vastly underpaid & not enough of it. Basically it's, here is your keys to the van now *"?> $/?!

It's all a numbers game, if you get a lot of customers from them your ok - but not everyone does.

So Ive heard.

[eco freindly. peoples champion ron .sherlock]

not a bad start may i say formula 6. well written and well executed . feng shui ron. :

[Shaun_Ashmore]

I would say that franchising is not for everyone, but remember the few that want a well paid job the freedom of self employment but need the helping hand of a head office (OK I know it comes at a price) perhaps not too good at selling either, some franchises may fit the bill for that person.

Perhaps that is their feng shui

Shaun

[Barry Pearce]

Be it that 90% of CCs & 99.9% of frachisees haven't got a clue about oriental rugs, the identifcation, restoration, and repair, so the CCs give it a wide berth but the master franchiser has always bought in the expertise and I have been involved from the very first with service master some 40 years ago, and I can honestly say that of the thousands of frachisees from every franchise group I have met, their is not one who has not had a moan about the % they pay, the high cost of everything they have to purchase, but that is human nature to gripe,  what the franchise organisations have done is not "buy big sell cheap",  because there is no wage war between them, so they each have creamed the extra profits of the top to pay for the HQ and all the non-produtives which has given the greatest benifits to ordanary CCs because as the franchisees prices move up, you have better margins to play with, but heaven forbid if the big boys start a price war.
Barry