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Does anyone here run a franchise?

Discussion in 'Franchising' started by Emma, Jul 30, 2008.

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    MotorkwikWales

    MotorkwikWales Applicant

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    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
     
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    andicrook

    andicrook Graduate

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    A franchise is only as good as the underlying business model that is the manual or proven business plan which is duplicated through franchising.
     
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    James Coakes

    James Coakes Freshman

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    Location:
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    Easy business is a myth

    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.
     
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    JoebeeKenobi

    JoebeeKenobi Freshman

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    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.

    Joe
     
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    fikri4u

    fikri4u Applicant

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    Location:
    Penang, Malaysia
    My experience as a franchisee in Malaysia

    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.
     
    Last edited by a moderator: May 20, 2011
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    Dan

    Dan Applicant

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    Hi what is the business which you are franchising for £699 ?
     
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    ping

    ping Senior Lab Tech

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    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..
     
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    highlandspring

    highlandspring Graduate

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    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.
     
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    ZineUK_Alan

    ZineUK_Alan Applicant

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    I am very passionate about franchising.

    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
     
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    RentalTablets

    RentalTablets Graduate

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    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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    vmax

    vmax Applicant

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    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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    captaincloser

    captaincloser View from the Crow's nest

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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.
     
    Mark likes this.
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    Tony Johnston

    Tony Johnston Applicant

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    I would have assumed that you buy one and get the second free?

    I'll get my coat...
     
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    martin2491

    martin2491 Applicant

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    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
     
    AnnieSpammy likes this.
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    wrapdogs

    wrapdogs Applicant

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    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.
     
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    Flatpack UK

    Flatpack UK Applicant

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    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!
     
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    ianstirling

    ianstirling Applicant

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    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
     
    Mark likes this.
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    Franchise Partner

    Franchise Partner Applicant

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    Location:
    London
    I'm Franchise Network Partner. Now I building a network of Franchisees and SME for the benefit of local communities,
    plays a key role in driving UK future growth and the prosperity of the local businesses.

    I invite others to franchise partner to the Franchise Network in five countries.
    Applies to every sector of the market. This franchise based on a pre-paid credit cards.
     
  19.  
    Ex Franchisee

    Ex Franchisee Applicant

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    B2B franchise scams

    I am one of many former failed franchisees of a B2B consultancy franchise, called The Infinite Group (customer-facing company is The Infinite Group (UK) Ltd and the franchisor company is Business Thinking Systems Ltd, both owned by Ian David Johnson; you can get more info about these here: ianjohnsonbusinessscams.blogspot.co.uk

    This so-called franchise promises its customer a quality business advice, whilst the quality of franchisees are far from what you would expect of a good and experienced business adviser. The Franchisor makes big promises to potential franchisees (who may not even have any kind of business experience, but may have some spare cash) the earth, but delivers nothing. There hasn't been a single franchisee that stayed for the full term of their agreement and none of them made any money (and I am still in touch with a few). In addition to that, the Franchisor has no system or processes in place either. Any materials used are those that other franchisees either hurriedly threw together themselves or downloaded from the internet. Is that worth paying any kind of money for?

    If that alone is not shocking enough, when franchisees decide to leave because they made no money, the Franchisor threatens them with a lawsuit for the money they "owe".

    Unfortunately, I saw through this scam too-too late...

    Anyone looking to buy into a franchise should do a thorough due diligence on the franchise they are looking to join, its owner(s) and any past and present franchisees, even if it takes some time, so that they don't regret it further down the line. In my case, I found out more painful truths about my former franchisor after I left and I wish I had investigated it before I joined.
     
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    captaincloser

    captaincloser View from the Crow's nest

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    due diligence

    The first time most franchisees hear of the phrase 'due diligence' is when it's mentioned to them by the franchisor...who then often carefully leads them down a crooked path of 'due diligence' of their own creation.

    Proper 'due diligence' would rule out 99% of bogus white collar franchises..there are literally hundreds of them acoss the globe.

    One of the biggest cons for new franchisees is testimonials from other newbee franchisees in a franchise who sing the praises of the franchisor from hymn sheets provided...this goes on until they slip off the face of the franchise having been stripped out of their investment and often left nursing a legal claim from the franchisor for fees and imaginary royalties agreed in the franchise agreement for several years to come.

    Franchisng for a huge proportion of franchisees is a very chastening experience. The self publicity of franchisors is very poorly monitored.Policing of the franchise industry is virtually non existant.

    Any 'professional bodies' claiming to represent the franchise industry in the UK are simply abysmal. Worse than the Mafia would be at policing the Upper East Side in New York in the 1980's. Banks collude also as do accountants, franchise agents etc...its all a big ball of self interest with the punter being the 'mark' for all these interested bodies to get a slice of.

    If I sound a little jaundiced it's because I am. I know several people ruined by sharks in the franchise pool.

    My best tip to a potential franchisee would be to take a long hard look in the mirror.Unless you are a dynamite salesperson do not buy a franchise. If you are a dynamite salesperson and you but a franchise...change your mirror as you will not be a dynamite salesperson. Such people do not buy franchises.
     
    Last edited by a moderator: May 18, 2013
    speedysi likes this.

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