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Re: Ian Lancaster
« Reply #20 on: November 25, 2009, 06:51:05 am »
But the differance between renting out a round and franchising is differant.
A franchisee would pay an initial investment for the franchise therefore moving away or getting bored or getting another job would become less likely than those who just rented a round.
I know Jim Penman in australia,a remarkable man with a remarkable business vision.I am sorry to say that i have never met Ian Lancaster,but i bet there are similarities.

lee_dewing

  • Posts: 3124
Re: Ian Lancaster
« Reply #21 on: November 25, 2009, 08:58:46 am »
very intresting reading.

out of intrest on a different thread Ian,  dai mentioned (on stigma topic) a post you did 1 to 2 yrs ago on how you built your business up again i think it was after you dumped the franchise fryer job.

Done a search can't find, Ian, anyone got a link.

thanka Lee
Pleasure in the job puts perfection in the work.     - Aristotle

Small but perfectley formed

  • Posts: 1747
Re: Ian Lancaster
« Reply #22 on: November 25, 2009, 02:31:11 pm »
Ian why dont you write a simple book about your franchise system.
I think many window cleaners would be prepared to buy it if the cost was reasonable this would also generate another income stream. ??? ;) ;D
Spit and polish

Ian Lancaster

  • Posts: 2811
Re: Ian Lancaster
« Reply #23 on: November 25, 2009, 03:27:59 pm »
But the differance between renting out a round and franchising is differant.
A franchisee would pay an initial investment for the franchise therefore moving away or getting bored or getting another job would become less likely than those who just rented a round.
 

Also a big difference is that the franchisee owns his business.  If he wants to give it up for any reason he can sell it.  A good franchise with a proven sustained profit can be worth many thousands of pounds.

This doesn't affect the ownership of the individual jobs, they still remain the property of the franchisor but the right to use them is where the value lies.


Ian Lancaster

  • Posts: 2811
Re: Ian Lancaster
« Reply #24 on: November 25, 2009, 03:30:06 pm »
I know Jim Penman in australia,a remarkable man with a remarkable business vision.I am sorry to say that i have never met Ian Lancaster,but i bet there are similarities.

Blimey :o :o  I wouldn't claim to be anything like Jim's league.  You're right about the similarities though, I believe we both have big noses ;D ;D ;D

Ian Lancaster

  • Posts: 2811
Re: Ian Lancaster
« Reply #25 on: November 25, 2009, 03:34:10 pm »
Ian why dont you write a simple book about your franchise system.
I think many window cleaners would be prepared to buy it if the cost was reasonable this would also generate another income stream. ??? ;) ;D

I might do that one day, but the list of jobs to do after I retire gets longer by the hour ::) ;D ;D

JRDEasiReach

  • Posts: 481
Re: Ian Lancaster
« Reply #26 on: November 25, 2009, 03:35:16 pm »
Wouldnt mind being in a position to do this myself in 10 years time, would beat having to employ someone :) On the other hand would it be possible to get someone to 'buy' into your business name and say for arguements sake run their own business from that?  Or is it better to go down the same road as yourself?
JRD Easi Reach
'The Ladderless Window Cleaning System'

Ian Lancaster

  • Posts: 2811
Re: Ian Lancaster
« Reply #27 on: November 25, 2009, 04:04:15 pm »
Hi Ian

You have povided some excellent advice on this thread and I'm sure you have much more to give.   Time to write a book on franchising methinks and add even more to your retirement pot  ;D

John

Hi John,

Glad to see you've made it at last ::)

Hope your ex-firm was generous with the redundancy :P

Regarding a book, see my post above re Jason Greens post.

Cheers,

Ian


Ian Lancaster

  • Posts: 2811
Re: Ian Lancaster
« Reply #28 on: November 25, 2009, 04:08:03 pm »
Wouldnt mind being in a position to do this myself in 10 years time, would beat having to employ someone :) On the other hand would it be possible to get someone to 'buy' into your business name and say for arguements sake run their own business from that?  Or is it better to go down the same road as yourself?

Surely 'buying in' to your business name is just franchising without a formal agreement?  How would you make any money from it? You could ask an initial up-front fee but without some commitment from you that wouldn't be much, and then there's no reason for your 'buyer-in' to pay you anything else :-\

JRDEasiReach

  • Posts: 481
Re: Ian Lancaster
« Reply #29 on: November 25, 2009, 04:12:07 pm »
yeah like i say im no expert thats where you come in :) does your franchisees all operate in the initial areas??  Or if say for example my business grew that much that i needed to have another van and an operator and he came from outside my locality where there wasnt a window cleaner could a franchise option work there if i 'helped' him to build a round and agreed a fee with him for every so many houses etc?
JRD Easi Reach
'The Ladderless Window Cleaning System'

dave0123

  • Posts: 3553
Re: Ian Lancaster
« Reply #30 on: November 25, 2009, 04:17:40 pm »
Ian what do you do with regards of payment?

If customers send you a cheque to your business name "ian lancaster window cleaner" how do you pass this on to the franchise.



Dave
Dave.

Ian Lancaster

  • Posts: 2811
Re: Ian Lancaster
« Reply #31 on: November 25, 2009, 04:32:34 pm »
yeah like i say im no expert thats where you come in :) does your franchisees all operate in the initial areas??  Or if say for example my business grew that much that i needed to have another van and an operator and he came from outside my locality where there wasnt a window cleaner could a franchise option work there if i 'helped' him to build a round and agreed a fee with him for every so many houses etc?

Certainly - my franchise is unusual in as much as it's all local to me.  Most franchisees are granted exclusive areas because they need that area to find there own customers.  Mine only works because I find the jobs, so there could be several franchisees all working in the same street, but not competing against each other.

Ian Lancaster

  • Posts: 2811
Re: Ian Lancaster
« Reply #32 on: November 25, 2009, 04:35:21 pm »
Ian what do you do with regards of payment?

If customers send you a cheque to your business name "ian lancaster window cleaner" how do you pass this on to the franchise.



Dave

Easy ;)

They are all called "......(their name)...trading as Ian Lancaster Window Cleaner" so their bank accounts can accept cheques as above.

JRDEasiReach

  • Posts: 481
Re: Ian Lancaster
« Reply #33 on: November 25, 2009, 04:38:31 pm »
Do you find though that your business would be seen as very professional as you have franchisees working using your name?
JRD Easi Reach
'The Ladderless Window Cleaning System'

Ian Lancaster

  • Posts: 2811
Re: Ian Lancaster
« Reply #34 on: November 25, 2009, 04:44:54 pm »
Do you find though that your business would be seen as very professional as you have franchisees working using your name?

I sincerely hope so :)

ccw

  • Posts: 9
Re: Ian Lancaster
« Reply #35 on: February 09, 2010, 10:04:04 am »
Don't know if Ian is still around or whether he's enjoying his retirement but wondered how you came up with your agreement. Did you have something to work off or was it from ideas you had whilst thinking the format through?

Thanks.

Ian Lancaster

  • Posts: 2811
Re: Ian Lancaster
« Reply #36 on: February 09, 2010, 01:12:43 pm »
Don't know if Ian is still around or whether he's enjoying his retirement but wondered how you came up with your agreement. Did you have something to work off or was it from ideas you had whilst thinking the format through?

Thanks.

I'm still around :)

My first agreement was one I wrote myself.  It took me about three years of thinking and refining, based on the agreement I had when I owned the fryer cleaning franchise.  I tried to think of every single issue that might arise, what my responsibilities are to the franchisees, what theirs are to me, etc.

It was fine for the first three years after I appointed my initial franchisee, but as the network grew I decided I ought to have proper legal advice.  I'm glad I did, even though it cost me some thousands of pounds, as there were issues with my terminology which meant that had a disagreement gone to court, various parts of my agreement were not enforceable and therefore the entire agreement could have been thrown out.

Now I have a proper watertight agreement drawn up by a professional franchise solicitor which gives both me and my franchisees the protection we need.

The other important document is the Franchise Manual.  This sets out how the franchisee is to run his business in great detail.  It is intended to show the franchisee how the agreement applies to him in practical terms, and to ensure there are no misunderstandings in the way our business activities relate between franchisees and franchisor.  This also took me some years to perfect, and even now issues arise that no-one had come across before, so by agreement with all concerned the manual is being continually updated.

ccw

  • Posts: 9
Re: Ian Lancaster
« Reply #37 on: February 09, 2010, 02:00:44 pm »
Thanks Ian

I saw your presentation at windex several years ago and I probably now have more than enough work to think about franchising but it is quite a daunting prospect. your answers on this forum are a great help to all I'm sure, if people are thinking of going down this route.

If you don't mind me asking...how did you set your royalty fee? Simply working out what time you would be spending on an ongoing basis or some other way?

Thanks

Andy

Ian Lancaster

  • Posts: 2811
Re: Ian Lancaster
« Reply #38 on: February 09, 2010, 02:13:50 pm »
Thanks Ian

I saw your presentation at windex several years ago and I probably now have more than enough work to think about franchising but it is quite a daunting prospect. your answers on this forum are a great help to all I'm sure, if people are thinking of going down this route.

If you don't mind me asking...how did you set your royalty fee? Simply working out what time you would be spending on an ongoing basis or some other way?

Thanks

Andy

I wanted to make a fairly good income from this, as it is my pension and apart from the State pittance it's all I have to retire on.  I decided that if I could offer a gross turnover that would allow a more than decent income after deduction of 20% royalties then I had to be sure of giving value for money.

Firstly I guarantee to provide as much work as they want (which means as much as they can handle, obviously I don't provide more work if they can't complete what they've already got)  then I provide pure water, I carry a comprehensive stock of spares for which I don't charge any more than they cost me, I'm on call virtually 24/7 to sort out problems etc etc.

20% is the figure I decided on for all the above reasons.  No other franchise guarantees to provide all the work (as far as I know) and most provide very little.  I wanted an easy to run set-up so made my target 6 franchisees - 20% from them less my running costs leaves me (on a good week!!) about what I used to earn as a fit youngster working full time.

Having said I only want 6 franchisees, I already have a 'Master' franchisee with a licence to replicate my system in an adjoining area - he has the right to appoint his own franchisees in that area and draw a royalty from them.  As he is my franchisee I still draw a royalty from him so I get a small percentage from any franchisees he appoints.

I'm not actively looking for master franchisees, but if any come knocking on my door I'm ready to listen.

ccw

  • Posts: 9
Re: Ian Lancaster
« Reply #39 on: February 09, 2010, 04:44:53 pm »
wow...thanks for the answer Ian, real food for thought. Trying to digest all the factors that have to be involved, think I need a lie down :D