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Info needed on setting up a franchise


rtbiscuit

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just wondered if anyone had any experience on setting up a franchise; does anyone own one; i'm looking at purchasing a franchise to give me a change in career. had a phone call tonight from the director and they are sending me an info pack.

 

i've started doing some research and only 3 other companies do the same thing in this area.

 

am going to email/contact local businesses who would use this service to see if they are already catered for and how much demand there might be.

 

i think for me the scary prospect is leaving a secure job to step into the unknown and take on a big business loan. i just want to make sure i can provide for my family and keep a roof over my head.

 

earning potential seems good; going on what the business is proposing; and i have ideas to further market the business beyond what comes with the franchise. i suppose i just need some reassurance, as its a lot to risk.

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Don't listen to their sales patter.

 

Talk to people ACTUALLY doing the job. Try to speak to other Franchise owners, they will give you an actual honest response rather that the Directors saying; if you sell 10 of these a month it will earn you £100k pa...etc

 

Work out what you need to bring home a month and find out how long it took the other Franchise owners to get to that level.

 

Don't be put off but just go into it with your eyes wide open.

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i listened to the bloke and must admit there was no real sales pitch; am waiting to get the pack to see if i can work out some solid figures. they given me an average financial turnover but that is gross and not profit. i want to find out from them how much materials are etc, so basically from the job how much of the profit is for the user and how much has to go back into resources.

 

got to find out what loan repayments would be like, what the setup speed has been like for other franchise owners. etc.

 

i know that the original company take Management fees are of 10% and advertising levies 1% of the turnover.

 

just want to know that if i do make the big turnovers how much of that is my end of year profit after all other payments have been made, and then that will tell me if stepping out of teaching is a wise idea or not.

 

the one benefit i have is that i can swap to supply work and ease from one to the other as business picks up so its not quiet a case of going out on an all or nothing limb.

 

i am by no means rushing into anything. :lol:

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the government seem to be backing franchisee's and so are the banks as they hold a high sucess rate something like 95% on average. compared to about 66% of independent setups.

 

i think it definetly has potential even in this climate, but i need ot work out if i will be competing in a closed market or diminishing market as the already established places have cornered all the work. and if the prices from the franchise come out higher or lower than whats currently on offer locally.

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the government seem to be backing franchisee's and so are the banks as they hold a high sucess rate something like 95% on average. compared to about 66% of independent setups.

 

i think it definetly has potential even in this climate, but i need ot work out if i will be competing in a closed market or diminishing market as the already established places have cornered all the work. and if the prices from the franchise come out higher or lower than whats currently on offer locally.

 

Then why ask for any advice if you know all the answers?

 

:snack:

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Without giving too much away, which market are you potentially looking at?

 

the government seem to be backing franchisee's and so are the banks as they hold a high sucess rate something like 95% on average. compared to about 66% of independent setups.

 

i think it definetly has potential even in this climate, but i need ot work out if i will be competing in a closed market or diminishing market as the already established places have cornered all the work. and if the prices from the franchise come out higher or lower than whats currently on offer locally.

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the government seem to be backing franchisee's and so are the banks as they hold a high sucess rate something like 95% on average. compared to about 66% of independent setups.

 

i think it definetly has potential even in this climate, but i need ot work out if i will be competing in a closed market or diminishing market as the already established places have cornered all the work. and if the prices from the franchise come out higher or lower than whats currently on offer locally.

 

Then why ask for any advice if you know all the answers?

 

:snack:

 

i have answers, but no experience or knowledge in the area, i have for the last 15 years worked for other people, i have never been the big boss, and at the end of the day, those major issues have been someone elses problem.

 

i want info form people in that situation or who own their own business who might highlight things i haven't thought of.

 

will wait for more info from the company and if im more serious then i might book a meeting with the bank to find out more about figures etc and how it might work.

 

if i'm honest the thought of it scares the crap out of me, but i also find the prospect quiet exciting at the same time. :wacko:

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Seriously, if it scares the crap out of you and excites at you at the same time then that is a good basis to start from but you MUST believe in the "product" :thumbs:

 

the government seem to be backing franchisee's and so are the banks as they hold a high sucess rate something like 95% on average. compared to about 66% of independent setups.

 

i think it definetly has potential even in this climate, but i need ot work out if i will be competing in a closed market or diminishing market as the already established places have cornered all the work. and if the prices from the franchise come out higher or lower than whats currently on offer locally.

 

Then why ask for any advice if you know all the answers?

 

:snack:

 

i have answers, but no experience or knowledge in the area, i have for the last 15 years worked for other people, i have never been the big boss, and at the end of the day, those major issues have been someone elses problem.

 

i want info form people in that situation or who own their own business who might highlight things i haven't thought of.

 

will wait for more info from the company and if im more serious then i might book a meeting with the bank to find out more about figures etc and how it might work.

 

if i'm honest the thought of it scares the crap out of me, but i also find the prospect quiet exciting at the same time. :wacko:

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the government seem to be backing franchisee's and so are the banks as they hold a high sucess rate something like 95% on average. compared to about 66% of independent setups.

 

i think it definetly has potential even in this climate, but i need ot work out if i will be competing in a closed market or diminishing market as the already established places have cornered all the work. and if the prices from the franchise come out higher or lower than whats currently on offer locally.

 

Then why ask for any advice if you know all the answers?

 

:snack:

 

i have answers, but no experience or knowledge in the area, i have for the last 15 years worked for other people, i have never been the big boss, and at the end of the day, those major issues have been someone elses problem.

 

i want info form people in that situation or who own their own business who might highlight things i haven't thought of.

 

will wait for more info from the company and if im more serious then i might book a meeting with the bank to find out more about figures etc and how it might work.

 

if i'm honest the thought of it scares the crap out of me, but i also find the prospect quiet exciting at the same time. :wacko:

 

 

I can work out what the loan repayments will be if you give me the figures......

 

It's very hard to give specific advice without knowing what the industry is......

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definatly need to see the product in action to judge for myself, seen some of the competitions work and its not bad but this is mean to be quiet good.

 

but the type of work interests me and would allow m eto get out and about, and i'd still be able to work with my hands; i wouldn't be indoors based in an office. id get to do some driving, meet people and possibly make a lot more money than i would in teaching.

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