[williamx]

Hi all

At the moment I have a very busy and profitable window cleaning business and I want to grow, but I am unsure in which way I should go.

I have looked at employing, I have even had all the paperwork needed drawn up, which cost over £600, the main problem I have with this route is the customer service and work quality that I will get from my staff.

I not want to have to go out on every job they do, but I do have very high standards in the work I want done, so finding the right staff to fit this good be more of a headache than its worth.

I have looked at renting out the round but this could be a minefield, if the rentee is not the nice charming chap he was at our first meeting.

The last method I have looked at is franchising.

I would like your input on the following if I went this way.

The following is what I would offer to anyone who wants to purchase a franchise off me.

   I would provide a sign-written van and uniform

   I would equip it with a complete wfp system including a backpack and various poles, including carbon fibres ones.

   The franchise will come will £25000 per year of cleaning customers, both domestic and commercial and priced correctly.

   I would supply new customers on a monthly basis, if they want them.

   I would promote the company in various ways to make it better known and recognisable to the general public.


What I would require

•   An upfront fee of at least £35000

•   A royalty fee per year of £5000 or 10% (whichever is the highest) of the turnover payable monthly.

•   The 1st cleaning charge on new business supplied to the franchisee.

They would need to sign a 10 year contract, if they cancel, then the customers I supplied would come back to me.
 
This is only a draft of what I am thinking, what do you think?

William

 

[kordun]

You can employ people, train them up properly, go out with them for few weeks, make sure you show them everything, teach them everything from window cleaning to dealing/talking with customers, make sure everything is done to your standards etc
We employ and never had issues. Of course pay them decent wages

[williamx]

I have looked at employing and I set the wage at £10 plus bonuses, but I am also looking at other methods as well.

The other reason against employing is the growing costs involved, in the next 2 years, the goverment have some expensive laws coming into effect, from NI raises, extended paternity leave and pension plans, plus we will soon be getting a new one and god knows what they will think up next.

I have no problem about paying good wages and benefits, but I would also like to earn at least the same myself.

[Window Washers]

I have looked at employing and I set the wage at £10 plus bonuses, but I am also looking at other methods as well.

The other reason against employing is the growing costs involved, in the next 2 years, the goverment have some expensive laws coming into effect, from NI raises, extended paternity leave and pension plans, plus we will soon be getting a new one and god knows what they will think up next.

I have no problem about paying good wages and benefits, but I would also like to earn at least the same myself.

Have fun employing it is a royal pain in the ass, the money is great but the stress is sometimes a killer,

[formb]

£35,000 + 10 % turnover seems excessive to me. The thing about franchising is most window cleaners enjoy building their own business. I'm sure the reason you are so meticulous with your customers is that they are yours. If you had been handed them in the beginning you may feel differently about them.  

We have employed people for a long time, it can go wrong. It can also work well. We have 1 guy for example who has been with us 11 years. He is good at training new starts and is far better at cleaning windows than I could ever be (and I'm pretty good). He stared with us at 18 as a number 2. He worked hard, learned the ropes and so we paid to put him through his driving test bought him a van and gave him some customers to get started with.

Now, along with his number 2 he does 800 + customers every month and turns us over a healthy profit, he is of course well paid for his efforts.

Employing people is the most demanding aspect of my job, but I will never stop.

[formb]

I have looked at employing and I set the wage at £10 plus bonuses, but I am also looking at other methods as well.

That's pretty much what we do.

[williamx]

£35,000 + 10 % turnover seems excessive to me. The thing about franchising is most window cleaners enjoy building their own business. I'm sure the reason you are so meticulous with your customers is that they are yours. If you had been handed them in the beginning you may feel differently about them.  

I personally think that its a bargain, yes you are right that some people like to build up their own little baby,  but if you have just been made redundant and for a small outlay, you are guaranteed a business which is earning you £500 per week and will continue to grow.

How much are newbies spending by starting up with nothing to getting a businesss which has a turnover of £25k and also how long does it take them.

[formb]

£35,000 + 10 % turnover seems excessive to me. The thing about franchising is most window cleaners enjoy building their own business. I'm sure the reason you are so meticulous with your customers is that they are yours. If you had been handed them in the beginning you may feel differently about them.  

I personally think that its a bargain, yes you are right that some people like to build up their own little baby,  but if you have just been made redundant and for a small outlay, you are guaranteed a business which is earning you £500 per week and will continue to grow.

How much are newbies spending by starting up with nothing to getting a businesss which has a turnover of £25k and also how long does it take them.

£500 per week less running costs, fuel, vehicle insurance, liability insurance, your 10%, water production costs, etc etc,

We started with £500, of course that was back in the day, before Tony Blair was evil and the squeegee was king.

[williamx]

£35,000 + 10 % turnover seems excessive to me. The thing about franchising is most window cleaners enjoy building their own business. I'm sure the reason you are so meticulous with your customers is that they are yours. If you had been handed them in the beginning you may feel differently about them.  

I personally think that its a bargain, yes you are right that some people like to build up their own little baby,  but if you have just been made redundant and for a small outlay, you are guaranteed a business which is earning you £500 per week and will continue to grow.

How much are newbies spending by starting up with nothing to getting a businesss which has a turnover of £25k and also how long does it take them.

£500 per week less running costs, fuel, vehicle insurance, liability insurance, your 10%, water production costs, etc etc,

We started with £500, of course that was back in the day, before Tony Blair was evil and the squeegee was king.

They will also have a canvassing company supplying as much new work that they want every week for the 1st year as well

[formb]

£35,000 + 10 % turnover seems excessive to me. The thing about franchising is most window cleaners enjoy building their own business. I'm sure the reason you are so meticulous with your customers is that they are yours. If you had been handed them in the beginning you may feel differently about them.  

I personally think that its a bargain, yes you are right that some people like to build up their own little baby,  but if you have just been made redundant and for a small outlay, you are guaranteed a business which is earning you £500 per week and will continue to grow.

How much are newbies spending by starting up with nothing to getting a businesss which has a turnover of £25k and also how long does it take them.

£500 per week less running costs, fuel, vehicle insurance, liability insurance, your 10%, water production costs, etc etc,

We started with £500, of course that was back in the day, before Tony Blair was evil and the squeegee was king.

They will also have a canvassing company supplying as much new work that they want every week for the 1st year as well

As you prob guessed franchising would not be my cup of tea but, I hope it works out for you.

[williamx]

No problem, at the moment its one possible way to move to the next level, the same as employing is.

[Clive McDonald]

I thinks it's too high.

From their point of view what will there friends and family say- you paid £35,000 to earn £500 and give this guy ten percent, what's his name Dick Turpin?

No bank would lend the money for this.If i was newly redundant and had this sort of money i would be reluctant to part with it on these terms, if only because i know it wouldn't get past my nearest and dearest. Any kind of due diligence by a more knowledgeable person wouldn't touch this.

Learn to run before you can walk. Your first franchisee is very important and must be a success, he would need better terms than this.This would be a kind of diy route, the proper route will never be done because it is too expensive.

[Clive McDonald]

Of course just to contradict myself this business model does have one massive benefit,
can anyone tell me what it is?(one word answer)

[Moderator David@stives]

Very wise words from Slumbuster.

For £35k and 10% basically they dont get nothing.

If they Were getting say £30k of van and equipment and £1k + of work guaranteed, maybe that would be a bit more like it.

[williamx]

I thinks it's too high.

From their point of view what will there friends and family say- you paid £35,000 to earn £500 and give this guy ten percent, what's his name Dick Turpin?

No bank would lend the money for this.If i was newly redundant and had this sort of money i would be reluctant to part with it on these terms, if only because i know it wouldn't get past my nearest and dearest. Any kind of due diligence by a more knowledgeable person wouldn't touch this.

Learn to run before you can walk. Your first franchisee is very important and must be a success, he would need better terms than this.This would be a kind of diy route, the proper route will never be done because it is too expensive.

at the moment these figures are not set in concrete, they might come down as well as go up, before I even take the first step, i will be having meetings with both the banks, my accountant and companies that know everything about franchising, including how to market it.

If it is not viable, then I won't go this way, but at the moment it worthwhile checking out.

Franchising does work in window cleaning and it will be a new way forward for some cleaners, the same that wfp has already proved.

[chopsie]

it is a lot of money,but he is providing a van with set up and poles,uniform etc,I  suppose it depends on how much this comes to,could be 10-15 even 20 grand,or more.Depends on type/age of van and set up

[williamx]

Very wise words from Slumbuster.

For £35k and 10% basically they dont get nothing.

If they Were getting say £30k of van and equipment and £1k + of work guaranteed, maybe that would be a bit more like it.

Ok then I will take back the 24k of guaranteed work, I will cancel the canvassers who will increase the round by at least £15k in the first year.

Instead I will get the poles "Gold Plated" instead.

[Clive McDonald]

Hydro you haven't told me what the massive advantage is, the answer as no one seems to know is VAT.

Five franchisees trading under the vat limit, would have a fifteen percent gross advantage over your employing five guys.

Ian's big thing is that he is prepared to buy back or sell on the business at any time.(subject to terms and conditions).

[williamx]

it is a lot of money,but he is providing a van with set up and poles,uniform etc,I  suppose it depends on how much this comes to,could be 10-15 even 20 grand,or more.Depends on type/age of van and set up

The poles will either come from Gardiners - Cleantech - Brodex and Ionics or all 3.

The wfp system will come from the best supplier who offer the best price and equipment.

The van will be a 2 - 3 years old.

[richywilts]

I have looked at employing, I have even had all the paperwork needed drawn up, which cost over £600, the main problem I have with this route is the customer service and work quality that I will get from my staff.

can you tell me who drawn up all your paperwork??

cheers richy