I have a friend that has a franchise for Spec Savers and has recently bought a second with them, so he must be doing ok.
Obviously I am busy trying to get our office furniture in their stores now!
I have experience of franchising from both sides of the fence.
A few years ago I bought a franchise from 24/7 staff, I parted with several thousand pounds and before I'd even finished my training they disappeared leaving me without anything to show for my money. They were a large company too with many successful franchisees, I know because I made a point of contacting most of them and visited several outlets. However this did not put me off of franchising in general. It's still a great way to gain back-up and support in business.
I'm sure that most people on here would agree that any business that has been around for a while has learned an enormous amount about their industry. Most of the wrinkles in their system have been ironed out and they have learned what works and what doesn't. This is what a franchisee pays for; specific industry knowledge. Whether that is worth the thousands of pounds some franchisors are asking for their brand is debatable.
Now I am franchising my own business and charging only £699 for a two year licence with no monthly fees. I've purposely set the licence fee low so that although it's enough to prove the franchisee is serious, if they don't make it they haven't lost their house. I'm not daft and understand that some people will fall away when they realise they have to actually work to be successful. (Why is it that no matter how many times you tell people that they'll have to work hard to make a success of something, there are always those who won't believe you?)
After costs, I earn nothing out of the licence but we supply the finished product so we will gain regular income from the sales the franchisee makes. The important fact here is that if the franchisee makes no money then we make no money so we have a symbiotic relationship. I have to make them successful or I suffer.
In my opinion that is what makes a good franchise and is the question every prospective franchisee should ask. How much does the franchisor gain if the franchisee fails?
Hi
I'm a franchisee with Motorkwik, it requires lots of hard work but enjoying it, started in July 2010 and I was their first franchisee and am still the only woman franchisee in the network, here's to a good 2011
I've been selling Laser Clay Pigeon Shooting systems for 20 years now and we have about 150 active in the UK. It's not a franchise per se but has a lot in common.
Having helped about 50 of these businesses set up my experience is that operators pretty much get a return on what they are prepared to put in. I have people who have worked hard and consistently over years and who now have a very good lifestyle business. Others who sat back and expected it all to happen for them have not much more than a part time income.
I don't think it's wise to choose franchising because it seems 'easier'. No business is easy. There would be a lot more of them out there if all the pipe dreaming hopefuls could do it without breaking their backs with work, having less holiday than employed people, missing parts of their children's growing up, staring down failure and all of those other things that entrepreneurs will be familiar with.
Sometimes you can surf the back of someone else's idea, but really there's no substitiute for hard work over a long time. If you want an easy life work for the government, although that's not so easy to find now.
Hi
I'm a franchisee with Motorkwik, it requires lots of hard work but enjoying it, started in July 2010 and I was their first franchisee and am still the only woman franchisee in the network, here's to a good 2011
Karen
Brilliant Karen! Great to see more women entering the franchise industry. This has been a real growth area with the likes of the EWIF (Encouraging Women into Franchising) Group coming to the forefront over the past few years.
Good to see some success stories appearing here and not just all doom and gloom.
After I quit my high paying job I wanted to learn about retail business and the easiest way to start (because I don't have any experience) is to apply for a franchise business. I started with Dailyfresh in Penang, Malaysia in a major shopping mall and had initial success. But after more shopping malls open nearby sales went down but it came back when people realize that the mall I'm operating in is very convenient and easy to drive to. But more and more shopping malls open. After a good 4.5 years running this, I'm planning to sell off the business. I only manage to get back the amount I invested in. I do not have regret what so ever because it was a very valuable lesson. But it was a painful lesson for me. Now I'm planning to join my wife in another retail business which is making significantly more profits than mine and requires essentially no capital to start. I'm planning to bring this business to the UK.
I have experience of franchising from both sides of the fence.
A few years ago I bought a franchise from 24/7 staff, I parted with several thousand pounds and before I'd even finished my training they disappeared leaving me without anything to show for my money. They were a large company too with many successful franchisees, I know because I made a point of contacting most of them and visited several outlets. However this did not put me off of franchising in general. It's still a great way to gain back-up and support in business.
I'm sure that most people on here would agree that any business that has been around for a while has learned an enormous amount about their industry. Most of the wrinkles in their system have been ironed out and they have learned what works and what doesn't. This is what a franchisee pays for; specific industry knowledge. Whether that is worth the thousands of pounds some franchisors are asking for their brand is debatable.
Now I am franchising my own business and charging only £699 for a two year licence with no monthly fees. I've purposely set the licence fee low so that although it's enough to prove the franchisee is serious, if they don't make it they haven't lost their house. I'm not daft and understand that some people will fall away when they realise they have to actually work to be successful. (Why is it that no matter how many times you tell people that they'll have to work hard to make a success of something, there are always those who won't believe you?)
After costs, I earn nothing out of the licence but we supply the finished product so we will gain regular income from the sales the franchisee makes. The important fact here is that if the franchisee makes no money then we make no money so we have a symbiotic relationship. I have to make them successful or I suffer.
In my opinion that is what makes a good franchise and is the question every prospective franchisee should ask. How much does the franchisor gain if the franchisee fails?
Hi what is the business which you are franchising for £699 ?
I agree with earlier posts i think its easier and more profitable to franchise more well known brands such as sub-way and dominoes as they have well planned and executed business/marketing plans but would see it being more difficult for smaller less known franchises..
I spend a few months looking at franchises in 2008, but decided to built up my own brand from scratch. Its more a personal preference and not needing to be dependent on another business's model.
It can be very good particularly with a well respected partner.
In my early working days, and im still very young at 31 , ive always worked in the web design franchise industry. Before setting up my own franchise, I used the experience and built our model on the errors that I had seen whilst working with others. Franchising is a great method of doing business, but it has to be fair to both parties.
I think franchising has allot of strong benefits, but they only work when working with the correct franchisor. I echo the comments of others above of be careful with a franchise you choose. I have some top tips. ( and these are coming from a franchisor!!)
1. Due Diligence
2. Due Diligence
3. Due Diligence
4. Ensure the product you sell is in demand by your target market.
5. Support is crucial in working with a good franchisor.
6. Check the franchise agreement
7. Ask where all the set up money goes and what is it used for
8. MAKE sure your speak with excising franchisee, ( and not just the successful ones franchisors normally feed out to all enquiries.
9.Check the sales history of the franchisor, some franchise's have sold more franchises than actual products.
10. Be 110% certain this is what you want to do before you part with any of your hard earned money
Hey I picked up a magazine from sainsburys called 101 ways to start your own business. It seems more like a one off publication as it's more like a bookezine.
I'm not into franchinsing but it looked good so I bought it. But having read it, almost ALL the case studies are on franchises. Either people talking about succeeding as a franchisee, or sole traders/partnerships thinking about expanding using the franchise model.
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In my early working days, and im still very young at 31 , ive always worked in the web design franchise industry. Before setting up my own franchise, I used the experience and built our model on the errors that I had seen whilst working with others. Franchising is a great method of doing business, but it has to be fair to both parties.
I think franchising has allot of strong benefits, but they only work when working with the correct franchisor. I echo the comments of others above of be careful with a franchise you choose. I have some top tips. ( and these are coming from a franchisor!!)
1. Due Diligence
2. Due Diligence
3. Due Diligence
4. Ensure the product you sell is in demand by your target market.
5. Support is crucial in working with a good franchisor.
6. Check the franchise agreement
7. Ask where all the set up money goes and what is it used for
8. MAKE sure your speak with excising franchisee, ( and not just the successful ones franchisors normally feed out to all enquiries.
9.Check the sales history of the franchisor, some franchise's have sold more franchises than actual products.
10. Be 110% certain this is what you want to do before you part with any of your hard earned money
I hope this helps.
Alan
I agree 100% and would only add one more thing, which is a Business Plan. Business Plans work not only for getting loans from financial institutions but allow potential buyers to understand what they require and then strategise for the next 3 to 5 years.
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Due dilligance ? Most of us wouldnt know what due dilligance is from a truck load of penguins.
Its not soley about asking a lawyer or accountant if the franchise is OK and its certainly not about asking friends and family if you are doing the right thing. Due dilligance should include unearthing all the bad stuff from existing and past wners of the franchise where possible. Typically you will not be the first to trip down the yellow brick road of the franchise and speaking to people who have not succeeded is every bit as important as speaking to the successful people. Most franchises will require you to be very good with people and a salespeson. Are you a salesperson ? Now there's a thought..
Franchising is certainly NOT a guaranteed road to riches.Its still all about you.
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I have a friend that has a franchise for Spec Savers and has recently bought a second with them, so he must be doing ok.
Obviously I am busy trying to get our office furniture in their stores now!
I would have assumed that you buy one and get the second free?
Well, Im a franchisee and ex UK franchise manager... in short, franchises do work..but they have to be right for you... It isnt about the start-up or the money you can make... it has to be right for you...
I know of lots of franchisees that fail at a franchise where other franchisees do fantastically well in the same franchise.
Unfortunately in my experience, it isnt about anything other than research, research and research... If you can, you should even volunteer yourself to work with an existing franchisee or something along those lines.
When things go wrong its often simply because the franchise doesnt fit the franchisee.
Finally, if you want to get rich.....start your own business
How many on here are actually looking to start a franchise. I'm just new on here so I don't know if this is classed as advertising.
We're offering no fee franchises on busy train station's throughout London & the southeast. We offer full support on a new brand. We offer the pitch at a station and we offer the kiosks to sell the goods from.
All you have to do is rent the pitch and buy the kiosk.
In about 3 weeks we'll be putting a fully operational demo kiosk in blackfriars northbank station for anyone interested to come and view.
Well I'm new here too, but as I was invited I'll take a chance and mention that our business is based on licensing the brand and supporting those licencees, rather than franchising and taking a big chunk of the profits. Our licencees are free to promote themselves any way they wish, run another business alongside, or whatever works for them. In return we give support and training, a national brand, a public directory, etc.
It's a lot cheaper than McDonald's too!
I have bought a franchise with my eyes open. I have allowed time to set it up correctly, made sure my area is large enough and it is now delivering the goods.
I help businesses to franchise using modern documentation so I understand the business. We are about to purchase a totally different franchise.
Ian
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