[ianharper]

RIP Franchising! As you know that chemdry franchisors got sold down the river this week. I wonder if they get any of that money? Why would anyone want to build a business for someone else?

With the resent trend in information Products (Joe Polish) and licensing (AllergSTOP) why bother with a franchise? With a info product its all up to you how you go about it, you invent your own systems and ways off doing things. With Likening you pay your fee and you get to tag onto your business a Brand name.

So is thre any justification for a fee? Yes. You get all the benefits of the R&D and a brand image that you can use. Plus you are never on your own as there will always be other licence users to help you market and MAKE MONEY.

Information Products and Licensing are the way forwards. I know that I would not be happy If I where a Chemdry franchisee at the moment. So the man at the top invented the system, surely it must be like being a share holder if he sells you get a cut. You have been part off the success.

As an example Joe Polish does not audit your accounts each year and then take cut, or make you give him money or say he wants a cut if you sell your business.

With Info products and licensing you get more freedom to do it your way, ok with a licence you have agree to don things a certain way because you representing a product.

I started my business to have more control, having a franchise you might as well be in a well paid job, at least then you don’t need to worry about all the responsibility.

[Mark Roberts]

So is thre any justification for a fee? Yes. You get all the benefits of the R&D and a brand image that you can use. Plus you are never on your own as there will always be other licence users to help you market and MAKE MONEY.

You have sumed up why some people franchise nicely. There will allways be room out there for everyone, in some areas having a brand name like s.master etc will be enough to keep the phone ringing all year long. Many people like being part of a network with the benifits that go with it, free help, training, marketing ideas the list goes on.

ok with a licence you have agree to don things a certain way because you representing a product.

Isnt that the same as franchising. You are still giveing someone money every year to use their product, if their not happy with the way you sell it, or if you dont sell enough the licence will be taken away.

Franchising will allways be here, because its proven to work over the last 25 years. As for chemdry, they may well come back even stronger with their new owners.

Mark

[Dynafoam]

Mark,

Isnt that the same as franchising. You are still giveing someone money every year to use their product, if their not happy with the way you sell it, or if you dont sell enough the licence will be taken away.

I assume that you are alluding to the Alergstop network?

If so, you have missed the point. No money is paid for the use of the products, other than the (discounted) purchase price. Money is paid for on-going training by members of the network but you or I - who are not part of that network - can still buy and use the products.

Was the Scotchgard Approved Applicator Scheme a franchise? No!

Since a massive investment is involved in promotion of these products and a part of their eventual success will be dependant on the image created by the members of the network I feel it to be eminently reasonable that those should be the applicators who, having committed themselves to the product, be the ones to reap the greater rewards.

People, like myself, who have not affirmed their commitment in such a tangible manner can still profit by the use of the products but cannot expect the same level of direct support as network members.

To me this is eminently fair.

[strakercleaning]

The voice of reason, as strong as it ever was 

[Mark Roberts]

I didn't miss the point The point of the topic is 'RIP franchising' i.e is franchising dead. I made no reference to Allerg-stop, I didn't need to because Ian brought it up in his second paragraph.
I still stand by my second quote when talking about licensed products, because as Ian says you have to agree to do things a certain way because you represent the product (if you are under licence) and like I said before if their not happy with the way you sell it, or if you don't sell enough the licence will be taken away. By introducing a set amount of product you have to use every year, you are in affect paying a cut to the manufacturer. Mr G Brown would be proud. The rest of us may well be able to use it, but the cost of doing so will make it a no-brainer, having a licence which gives you the discount and the chance to market it makes it feasible.

So no franchising will not die because of a few licensed products. ( Or did I miss the point of this thread )

[Doug Holloway]

Hi Guys,

Franchising is a proven way for people with very little experience to become businessmen.

It is a halfway house which will always suit some people.

Licencesing is  a sort of franchise which has greater flexibility  i.e you can pull ot/be kicked out and still retain the rest of your business.

I've always liked my independance so am not a natural franchisee, but someone who has many years of the corporate culture may feel more secure as a frasnchisee/licensee.

Independants and franchises will both continue.

cheers,

doug

[ianharper]

Hi Mark

Do you agree that having a licence give credibility to a selfemployed person?

A franchise is a set of systems that have been proved to work. today with the information age many people now produce information products that if you put together  you would have a colection of systems just like a franchise.

A sort of bolt together business.

with surport from good forums like this one, and helpful people like yourself the chances of making your business work today over when we did not have these thing must imporove? and hopfully make our service a more professional one.

I am sur that you would agree that things are more professional than ever before. with a more diverse market for us to build from, machine etc.

I for one would like to see many more large indepenant business. to compete with franchises. just think that if we had them now chemdry might have not had got a buyer. what we need now is more carpet cleaning business and less selfempoyed carpet cleaners. this will only come from more education in business building.

This would produce a market where companies would seek work, more than waitting for the phone to ring way. I believe that the more companies you get (to a point) telling prospect about carpet cleaning puts carpet cleaning up to list in their heads.

we wait for peoples carpets to get dirty, what we should be doing is telling people that if they look dirty its to late the wear has started. this benifits us two ways first we get to clean cleaner carpets and second more time than waiting for them to get dirty. sorry get get of the point its that i feel than it 's relvent.

Going back to the franchise we never hear about the people that fail with them. if the systems are so good then this should not happen. but it does. why?

you get some money and invest it in a franchise thinking that its a safe bet then it all goes wrong. if you had done my your own and this happens then you have only yourself to answer. but if you were told that you would get help all the way then what?

last point just think if you sub some work out and the guy that you think is going to do the get his mate to do it in his car with a machie thats on its last legs. remember that this person is repersenting you how are you going to feel now?


Respect.................................. Ian harper

[Barry Pearce]

Ian H.
It might just be that frachising as we know it Has or Will change, for among all the promises that are made, on going training that keeps their members one step ahead of the competition and keeps their Brand and their Image in the forfront of the core business, "INSURANCE" has continually failed to match set agreements that are requied with national coverage, its not the cleaning but the specialist elements that tip the balance in their favour.
Specialist training by in house staff and in particular "CARPET RESTORATION AND REPAIR" has failed misserably, Safe-Clean have now had to outsauce everything, and without exception there is so much overall disquite in the ranks  over the matter of lack of backup that new appicants are only given  a chosen few to contact, and we know why.
Barry

[Len Gribble]

Going back to the franchise we never hear about the people that fail with them. if the systems are so good then this should not happen. but it does. why?

Franchisors like to keep things under rap about ex-franchisees even to new ones joining, as Barry pointed out.

Being an ex-franchisee myself most have to sign a gagging clause when the leave, not applicable with a licence you can sing it from the roof tops!

Two major differences between a franchisee and a licence, one takes your soul and charges the earth for it the other doesn’t!

I wonder how rainbow franchisees are get on with ISS?

Len

[Shaun_Ashmore]

I bet Chemdry franchisees will be delighted with who has bought them. Homeserve are in everyones home they just didn't offer carpet cleaning but they do now, and look no advertising! all they need to do is hand a cleverly worded leaflet to the home owner or insurance company etc and it will just be a continuation of their services.

Shaun

[Len Gribble]

Shaun

Think they do via regency.

Len

[jasonl]

As an ex CD franchissee,  and having spoken to several, the feeling is the company now has even more industry clout and access to even larger markets, my opinion is that Home serve bought  the insurance  aspect of CD (35 million plus) in revenue p.a. I dont think they are that  bothered about  franchissees and keeping them happy, my guess is that they will cream off they major disaster projects--- Carlisle floods I reckon was worth £8 million plus to CD franchissees, a handful of these got the work- will this happen in the future or will homeserve take on this very profitable type of work.
Also CD have a national network of generally motivated individuals, and that was worth in my opinion the 18.9 million homeserve paid.
As for me I am happier out of CD , I learned a lot about business and my chosen proffession, and the future is bright, thank you chem dry, and no you cant have any more 22% of my montly income lol

[therapist]

Thought for the day...

Did C/D have any contract work?

If they had, there could be opportunities out there just waiting for your phone call or introductory letter !!!!!!

It's an ill wind, as they say......

r m

[CATMAN]

I would like to say franchising is not dead. I am a Rainbow franchise and to me being part of a larger company has given the brand strength.

Homeserve, bought Chem-Dry to strengthen its overall services.

Homeserve could not cream off the big contracts such as Carlisle, who do they have to do it. If you rolled the clock back 2 years and we had a Carlisle,alot of people would have said the same for Rainbow. ISS although big would not have the immediate rescources,to be onsite quickly.

If I was a Chem-Dry, then I would be thinking if I did building work as part of my restoration services this could be lost as Homserve, have their own builder network, although more Carpet Cleaning may come my way.

Franchised businesses work because they are run as individual businesses, to say they have has their day, is rubbish.

I have the impression from a few people on hear that they are against it and its easy money. Far from it, who on hear could employ people, keep them busy all day everyday, then the phone rings, get onsite in two hours.

[Barry Pearce]

Catman
You and the frachisees are far from done fore, I mean, how much did you pay to buy in £20.000--£30.000 and you hit the floor running, but its dog eat dog out there and the squeese in one.
Barry

[ianharper]

hi guys

with respect

So franchisers are happy cleaning then?

My point. I have a maid service have about 20 staff and in my day I can do what I want. I have chossen to build a carpet business now. not to work in it but to have business not a job.

How did I get to this point though information products. not handing over big money to some person that can take my business away at any time. or take a cut each month or year.

having a franchise for MOST is like a job, not a business, yes some will build to VERY large business. but its not the norm.

I have a fire in my kitchen last year and the guy that came from the insurance company worked for Chemdry as their insurance quoter, and he got out evan when you take into account that he was offerd a franchise on a payment plan. Why?

Speak to Len gribble off line about the way franchise companies treat franchisees, why off line because he cant talk about in in public or he will end up in court. why?

I for one am not affected by fanchise spin. when the information is out there for a lot less money.

one more example when selling my secondhand truckmount I had interest from franchisees One very big named one in my area. why are they looking at secondhand equipment?

franchising is a working system. information products are proven systems. networks give selfemployed cleaners more power by working together.

At the moment we only have so called assations that are just trainers (nothing wrong with that) what is needed is a group that can get a standard like the NCCA produce to got out and get big contracts, because that all thats left in my book that franchiess have to offer.

How would you run this, on a Coop basis. this would stop cherry picking best work for fav contractors.

The end is near-)

respect............................Ian Harper

[Len Gribble]

Catman

I like the quote franchised businesses work because they are run as individual businesses, yes ok, but you forgot to add you have restraints on how much you charge on insurance work, yes it was abused by some especially by some where equipment left, and am not point any fingers!

If I were in your shoes I would ask ISS why ant they asking you to clean there commercial carpets! Where the team membership!

Ian

In there books I was a bad franchisee and I have a large data base to prove other wise and nothing to do directly with cc

I think franchising is good for my business, as I always recommend them to a potential customer the names!

Len

[Ian Gourlay]

I am a littled puzzuled as i have not investigated  The Allergy Stop Network but Nick has obviously come up with another Marketing Winner for his company.

What puzzles me is why I should also be able to buy these products when I have not invested in the Training or concept.

Do those of you who are promoting this product on your Marketing Material have to guarantee to use this product all the time?


The Alltec Network also puzzles me .

At least a customer knows that if they use a Chem Dry Stain Buster Servicemaster, Rainbow etc they have a Head Office to complain to if they do not get satisfaction.

That reminds me must send an email to Tescos I am fed up with not getting all the supplement or the wrong one when i buy my Sunday paper.

[ianharper]

Hi Ian

Great name by the way 

In answer to your question you will not be able to use logo or the name in your marketing. just like scotchgard. if you are not in network

product and network members are all guaranteed, as all service should be. remember that this product will be able to be tested after to make sure that it has done it 's jjob. not like many products.

Respect............................Ian Harper

[Len Gribble]

Ian G

At least a customer knows that if they use a Chem Dry Stain Buster Servicemaster, Rainbow etc they have a Head Office to complain to if they do not get satisfaction

Do they? Don’t they use a word INDEPENDENT (not depending on authority or control?) that one from oxford dictionary!

But I do get your drift

Len