It all depends upon what type of business you want to buy into and the level of investment. There are many companies offering franchises but many are not worth getting involved with.
A franchise is no guarantee of success either and I would suggest you look at a sector that you want to get into then do your research.
Good luck
Barbara
A franchise is no guarantee of success either and I would suggest you look at a sector that you want to get into then do your research.
Good luck
Barbara
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A
ash213
- Original Poster
- #4
I am strongly considering the http://www.wheeliebin.co.uk/packages.htm franchise
It seems ideal for me and could potentially be affordable if I could get some finance from the bank. How easy would it be to get finance from the bank?
Thank you
It seems ideal for me and could potentially be affordable if I could get some finance from the bank. How easy would it be to get finance from the bank?
Thank you
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You could set yourself in that business without buying a franchise.
How much do you have to invest in a franchise?
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businessfunding
- Original Poster
- #7
Remember you will need to factor in the cost/finance of a suitable van, and living/running costs until you establish your round, unless you are planning on buying an established franchise.
The website says that finance is available, so it is worth enquiring what they have in place. Any mainstream funder will want to look closely at what security you can offer.
Only a personal opinion, but I can't see any real brand value or valuable process attached to this particular franchise, so you are effecively paying a premium for training and back-up - if that is very important to you then it's worth considering.
A few pointer:
- Establish not only up front cost, but ongoing charges and price differential between their products and those on the open market.
- talk to several established franchisees (I suggest you select a sample from those shown on the website).
Don't sign anything ntil you 100% happy with what you are getting in to.
The website says that finance is available, so it is worth enquiring what they have in place. Any mainstream funder will want to look closely at what security you can offer.
Only a personal opinion, but I can't see any real brand value or valuable process attached to this particular franchise, so you are effecively paying a premium for training and back-up - if that is very important to you then it's worth considering.
A few pointer:
- Establish not only up front cost, but ongoing charges and price differential between their products and those on the open market.
- talk to several established franchisees (I suggest you select a sample from those shown on the website).
Don't sign anything ntil you 100% happy with what you are getting in to.
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A
ash213
- Original Poster
- #8
I understand what you are saying but belonging to the franchise it will be alot easier than starting from scratch. For example providing the vehicle for the business etc. That would cost a packet on my own. With this firm you basically lease the vehicle ready to start business. It sounds like there are quite a few successful franchisees with they're network.
Strongly cOnsidering it. Think you need around 9k + 7k liquid funds. Can probably raise half that myself and would be searching for the rest from a bank business loan.
I want an easy life to be honest and this seems the way forward.
Im a quiet guy and this seems to suit me.
Any more thoughts would be great. Cheers
Strongly cOnsidering it. Think you need around 9k + 7k liquid funds. Can probably raise half that myself and would be searching for the rest from a bank business loan.
I want an easy life to be honest and this seems the way forward.
Im a quiet guy and this seems to suit me.
Any more thoughts would be great. Cheers
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D
David A
- Original Poster
- #10
Be EXTREMELY CAREFUL and exercise utmost DUE DILIGENCE before you embark on any franchise. I was a franchisee and bitten hard in my quest to separate (it had morphed into something quite different to what I had originally joined). Hear are some things to think about:
- Are you buying a job or a business - that is, can you 'oversee' the business rather than having to work in it (maybe you will work in it to start, but can you delegate sufficiently when established to free up your time).
- Is the franchise you are looking at reasonably future proofed. i.e. until the Government pulled the plug on HIPs as part of house buying, you could have bought a franchise offering this. Most HIP providers went to the wall when the rules changed.
- If the franchise is well established, once you sign an initial confidentiality agreement, they will give you more details of the franchise including a list of current franchisees for you to phone and ask them about the business. Check the list with an on-line directory to see if they are being selective (omitting those who might not paint the franchise as the best thing since sliced bread).
- What is the gross profit margin and what is the monthly management fee payable. i.e if the gross profit is 40% of turnover, and the monthly management fee 10% of turnover - it means that the monthly management fee represents 25% of your gross profit. Can you run the business at a profit with what remains?
- If you sign up, how easy is it to part company if things don't work out? Can you set up in competition afterwards?
- If your enquiry is so serious that a franchise agreement is produced, be extremely wary if it has a tern like 'adherence to the Operations Manual is a key term of this agreement'. This is because the Operations Manual is a living document and altered by the month - thus you will be signing up to adhere to something that might change to something you find impossible to live with.
- ALWAYS REMEMBER that the law regards the franchisor/franchisee relationship as a business to business relationship, thus caveat emptor is key because no consumer protection will exist.
- Bear in mind also that it is the franchisee that carries most risk on whether the franchise takes off and becomes profitable. If it doesn't work out, it is you that will go bust, not the franchisor.
- Lastly, it is often the case that it is the franchisor that makes the money, not the franchisee. Look at the biggest franchisor in the world - McDonalds - where most people think wrongly that the franchisor is in the business of fast food. Not so, as they are principally owners/renters of real estate and providers of fast food ingredients and other branded consumables: which their franchisees pay them rent and from whom they have to buy their stock and consumables. It's the franchisees that are into the fast food business.
Last edited by a moderator:
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Hi Ash
Have you ever used a wheelie bin cleaning service?
I asked my self a similar question on Monday (not about wheelie bins)...
I was in Regent Street, London and went into the Apple shop, because I wanted someone to look at my IPhone. Well I was amazed!
Within a minute my phone was sorted. I asked the assistant how many staff were on that day and he said at any one time there were a few hundred and less on Mondays! The place was absolutely buzzing, must have been 500 people in there.
I thought about it after coming outside and realised almost everyone wants one of there products, IPhone, IPad, Laptop etc (OK some may not)...
Look I am only saying this because I have never and would probably never have my wheelie bin cleaned. I could use tho a gardener, grass cutter, window cleaner, a weed killer, oven cleaner, ironer, car cleaner, weekly, fortnightly, monthly as repeat business.
Hope this helps
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Hi Ash, I'm a believer in franchises, at least when they're a necessary part of setting up successfully- I should declare an interest here, since that's my industry! However, I'm with PatientLady on this one;
At the end of the day, only you know if what you're getting for the Franchise Fee is worth it- did you consider setting up on your own?
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I agree with this, there are loads of cleaning franchises but I always wonder what you get for your money, other than a company name which is not likely to be established in your area anyway!
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With respect, that's entirely the wrong way of thinking about it. You are going down the dangerous path of "which franchise" rather than "is a franchise an advantageous business model for the business I want to run".
Franchises can work very well (I am a franchisee), but only where it gives you a competitive advantage that you cannot obtain by any other means, and the sums must add up. The additional profit must be (considerably) greater than the franchise costs, or you will be emptying your wallet into the franchisor's, and this forum has witnessed many such horror stories.
So don't rule it out, but start from the business idea and then explore a franchise as an option.
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ash213
- Original Poster
- #20
thank you all for the responses.
basically the franchise of this company seems ideal for me. they have been around since the early 90s...have quite a few franchisees who sound like they are successful.
i understand you feel the initial cost of entry is high and unnecessary but to be honest i look at that cost and think that is basically paying for the vehicle. without becoming a franchisee i don't think i would able to create the vehicle or get one at that price.
with regards to cleaning bins, for example, i myself use this company to get my bin cleaned, as do many of my neighbors.
i certainly think its a market one could dip into quite easily and with hard work gain a healthy and large customer base.
i serioulsy do understand your worries over the cost and the fact a franchise may not be worth it for this kind of work but i do see it as a pretty hard to get into for such a low entry price.
thank you all and i look forward to your thoughts.
basically the franchise of this company seems ideal for me. they have been around since the early 90s...have quite a few franchisees who sound like they are successful.
i understand you feel the initial cost of entry is high and unnecessary but to be honest i look at that cost and think that is basically paying for the vehicle. without becoming a franchisee i don't think i would able to create the vehicle or get one at that price.
with regards to cleaning bins, for example, i myself use this company to get my bin cleaned, as do many of my neighbors.
i certainly think its a market one could dip into quite easily and with hard work gain a healthy and large customer base.
i serioulsy do understand your worries over the cost and the fact a franchise may not be worth it for this kind of work but i do see it as a pretty hard to get into for such a low entry price.
thank you all and i look forward to your thoughts.
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I was a franchisor and my advice is to spend the £15 on this, as vvaannmmaann has posted, to find out more about the business before spending thousands and then finding you either don't like the business or can't run the business.
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The business model for wheelie bin cleaning is sound. I sold a business a couple of years ago which made good profits.
It's hard work though and you need lots and lots of customers.
Somebody mentioned doing your due diligence on this one so out of curiosity I did a Creditsafe search on Company No. 3874202 who are shown as the operators of this franchise on http://www.wheeliebin.co.uk/packages.htm .
Interesting reading!! Definitely do your due diligence.
It's hard work though and you need lots and lots of customers.
Somebody mentioned doing your due diligence on this one so out of curiosity I did a Creditsafe search on Company No. 3874202 who are shown as the operators of this franchise on http://www.wheeliebin.co.uk/packages.htm .
Interesting reading!! Definitely do your due diligence.
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I thought that might be the case.
You can get free copies of UK Company Accounts from levelbusiness.com
Otherwise, if you google "company credit searches" you will find agencies providing credit data for as little as £1.95. This would seem to be a sound investment for anyone considering buying any franchise. Find out how strong the franchisor is first.
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P
PERCY67
- Original Poster
- #27
I don't see with something like this, what advantage buying a franchise has over doing it yourself.
Once you have the set up, the Modus operandi , is to get the leaflets out, work out what days the bin men come and were do you put the dirty water?
I would advise though as already mentioned it's a concentionary purchase. I used to see two, every other Friday around here, but it appears to have died
Once you have the set up, the Modus operandi , is to get the leaflets out, work out what days the bin men come and were do you put the dirty water?
I would advise though as already mentioned it's a concentionary purchase. I used to see two, every other Friday around here, but it appears to have died
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S
S-Marketing
- Original Poster
- #28
It's the same with the vast majority of service based businesses. People see a franchise as a way of not having to worry about the marketing. This is simply not the case.
Buying a franchise gives you a marketing disadvantage most of the time.
I would normally charge about £ 2000 maybe £ 2500 to set up a normal service or trade type business, which would give the new business owner a huge advantage over anyone buying a franchise. I honestly can't see how anyone thinks that these franchise businesses are a good idea.
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OP if you want to know some more about all sorts of franchises,this show is on next month.
http://www.thefranchiseshow.co.uk/
However,remember the guys selling these things are very clever.As above do your homework!
Good luck with whatever you do.
http://www.thefranchiseshow.co.uk/
However,remember the guys selling these things are very clever.As above do your homework!
Good luck with whatever you do.
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A
alanjgibson
- Original Poster
- #31
Hi Ash213
Check out the upcomming Franchise show at the NEC also, 24-25th February 2012.
You can get more information at the franchiseinfo.co.uk website.
As for due dilligence on Franchise operations here is a list of 50 questions, taken from the bfa (British Franchise Association)
website, that you should ask any Franchisor and they shoudl be able to answer!!
On their Business
1. How long have you been in franchising?
2. How many franchised businesses are you running at the moment?
3. What are the addresses of these businesses?
4. May I interview any number of these franchisees? And may I choose whom I interview?
5. What does your head office organisation consist of?
6. Can you demonstrate your capacity to provide the necessary follow-up services?
7. May I take up your bank reference?
8. Are there any other referees whom I may approach?
9. How many business failures have been experienced by your franchisees?
10. On what basis do you choose your franchisees how selective are you?
On Costs
11. How much does your franchise cost, what does this price include and what capital costs will be incurred in addition to this price? And what for?
12. How much working capital do I need?
13. What will be the gross profit margin and what costs will I incur in arriving at a net profit? (Do these figures take my salary and depreciation into account?)
14. May I see actual accounts which confirm or fail to confirm your projections?
15. Did you run your own pilot schemes before franchising?
16. If not, why not?
17. Whether you did or not, what is the extent of your own cash investment in the business?
18. What financing arrangements can you make and what terms for repayment will there be? What rate of interest will be required and will the finance company want security?
On Methods
19. Is the business seasonal?
20. When is the best time to open?
21. What fees do you charge?
22. Do you take any commission on supplies of goods or materials to a franchisee? Do I have to purchase all or just scheduled items from you? Does this apply to equipment?
23. Will I be obliged to maintain a minimum fee or minimum purchase of goods? What happens if I fail to meet this commitment?
24. What advertising and promotional expenditure do you incur?
25. Do I have to contribute to it, if so how much?
26. What initial services do you offer?
27. Do you train me? Who pays for my training? Where do I go for training?
28. What continuing services do you provide after the business has commenced?
29. May I have a copy of your franchise contracts?
30. Does this contract permit me to sell my business? What restrictions are there affecting my rights to sell the business?
31. For how long is the franchise granted?
32. What happens at the end of that period?
On Your Involvement
33. What will happen if I do not like the business?
Upon what basis can I terminate the contract?
34. Who will be my link with you after I have opened for business?
Can I meet some of your staff?
35. What point of sale and promotional literature do you supply and what do I have to pay for it?
36. What will be the opening hours of the business?
37. Will I own the equipment necessary to operate the business when I have cleared the finance company?
38. How soon will I have to spend money on redecorating the business premises?
39. How soon will I have to spend money on replacing equipment?
40. Will you find me a site or do I have to find it?
On Communications & Operations
41. What systems do you have for keeping franchisees in touch with you and each other? Do you publish a newsletter? Do you hold seminars?
42. What help will I receive in local advertising and promotion?
43. What exclusive rights do I get?
44. How will I cope with my book-keeping?
45. What can I sell and what can I not sell?
46. Do you provide instruction and operation manuals?
47. What would happen if you misjudged the site and it did not produce the anticipated figures but resulted in a loss?
48. What would happen if I ran into operational problems I was not able to solve? What help would I get?
49. How can I be sure you will do what you promise?
50. Is your company a member of the bfa? If not may we know the reason?
Hope this helps and good luck with your search. There are some very reputable Franchise brands out there and, like most things in business, research and due dilligence is the key.
Check out the upcomming Franchise show at the NEC also, 24-25th February 2012.
You can get more information at the franchiseinfo.co.uk website.
As for due dilligence on Franchise operations here is a list of 50 questions, taken from the bfa (British Franchise Association)
website, that you should ask any Franchisor and they shoudl be able to answer!!
On their Business
1. How long have you been in franchising?
2. How many franchised businesses are you running at the moment?
3. What are the addresses of these businesses?
4. May I interview any number of these franchisees? And may I choose whom I interview?
5. What does your head office organisation consist of?
6. Can you demonstrate your capacity to provide the necessary follow-up services?
7. May I take up your bank reference?
8. Are there any other referees whom I may approach?
9. How many business failures have been experienced by your franchisees?
10. On what basis do you choose your franchisees how selective are you?
On Costs
11. How much does your franchise cost, what does this price include and what capital costs will be incurred in addition to this price? And what for?
12. How much working capital do I need?
13. What will be the gross profit margin and what costs will I incur in arriving at a net profit? (Do these figures take my salary and depreciation into account?)
14. May I see actual accounts which confirm or fail to confirm your projections?
15. Did you run your own pilot schemes before franchising?
16. If not, why not?
17. Whether you did or not, what is the extent of your own cash investment in the business?
18. What financing arrangements can you make and what terms for repayment will there be? What rate of interest will be required and will the finance company want security?
On Methods
19. Is the business seasonal?
20. When is the best time to open?
21. What fees do you charge?
22. Do you take any commission on supplies of goods or materials to a franchisee? Do I have to purchase all or just scheduled items from you? Does this apply to equipment?
23. Will I be obliged to maintain a minimum fee or minimum purchase of goods? What happens if I fail to meet this commitment?
24. What advertising and promotional expenditure do you incur?
25. Do I have to contribute to it, if so how much?
26. What initial services do you offer?
27. Do you train me? Who pays for my training? Where do I go for training?
28. What continuing services do you provide after the business has commenced?
29. May I have a copy of your franchise contracts?
30. Does this contract permit me to sell my business? What restrictions are there affecting my rights to sell the business?
31. For how long is the franchise granted?
32. What happens at the end of that period?
On Your Involvement
33. What will happen if I do not like the business?
Upon what basis can I terminate the contract?
34. Who will be my link with you after I have opened for business?
Can I meet some of your staff?
35. What point of sale and promotional literature do you supply and what do I have to pay for it?
36. What will be the opening hours of the business?
37. Will I own the equipment necessary to operate the business when I have cleared the finance company?
38. How soon will I have to spend money on redecorating the business premises?
39. How soon will I have to spend money on replacing equipment?
40. Will you find me a site or do I have to find it?
On Communications & Operations
41. What systems do you have for keeping franchisees in touch with you and each other? Do you publish a newsletter? Do you hold seminars?
42. What help will I receive in local advertising and promotion?
43. What exclusive rights do I get?
44. How will I cope with my book-keeping?
45. What can I sell and what can I not sell?
46. Do you provide instruction and operation manuals?
47. What would happen if you misjudged the site and it did not produce the anticipated figures but resulted in a loss?
48. What would happen if I ran into operational problems I was not able to solve? What help would I get?
49. How can I be sure you will do what you promise?
50. Is your company a member of the bfa? If not may we know the reason?
Hope this helps and good luck with your search. There are some very reputable Franchise brands out there and, like most things in business, research and due dilligence is the key.
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J
John Giblin
- Original Poster
- #32
There are other options which do not involve any financial upfront input.
E.g. we are looking to give away a 20% stake in one of our business revenue streams (Google - Reach Another Level Ltd). We see this as the best option for a start up business or dynamic entrepreneur.
Let me know if anyone knows of a suitable person who may be interested in finding out more.
Regards
John
E.g. we are looking to give away a 20% stake in one of our business revenue streams (Google - Reach Another Level Ltd). We see this as the best option for a start up business or dynamic entrepreneur.
Let me know if anyone knows of a suitable person who may be interested in finding out more.
Regards
John
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Reading this post did make me chuckle
So whilst I am having a cup of tea I will answer the questions that the BFA, LOL, suggest you ask, see above in red.I might add that exhibiting a franchise expo is primarily an exercise in gathering contact details of prospective franchisee's and not to sell franchise's, that part comes later. And I would be very surprised if a franchisor stood and listened to all these questions.
I have answered them in manner and with the respect that the BFA deserves
£2,000+ just to have BFA on your paperwork, HA!One of the many reasons I never do franchise shows, unless I fancy a good and chat with other franchisors.
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Not sure if the OP is still around on this one but this may be of interest.
http://www.ebay.co.uk/itm/wheelie-b..._B_I_Business_for_Sale_CV&hash=item3cc1793f15
http://www.ebay.co.uk/itm/wheelie-b..._B_I_Business_for_Sale_CV&hash=item3cc1793f15
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I found the post while researching a possible low level franchise opportunity.
I currently work through my own Ltd company. I will shortly be going back to a PAYE job. Which means I'll be working offshore for 2 weeks and home for 3 weeks. So i have been looking for anything that i could run through my Ltd co but wouldn't take up too much time.
I have found one such opportunity run/owned by an outfit called 'readymadebusiness4u'. It's one of these deals that sounds to good to be true. you buy X amount of mobile phone charging kiosks from them. They find a site for you, position the kiosk, maintain the kiosk. The kiosks have the facility for advertising where they probably make the money off. It seems all i have to do is maybe collect the money.
Dose anybody have any Knowledge or first hand experience of this outfit 'readymadebusiness4u'
Also what are peoples thoughts on this opportunity.
I currently work through my own Ltd company. I will shortly be going back to a PAYE job. Which means I'll be working offshore for 2 weeks and home for 3 weeks. So i have been looking for anything that i could run through my Ltd co but wouldn't take up too much time.
I have found one such opportunity run/owned by an outfit called 'readymadebusiness4u'. It's one of these deals that sounds to good to be true. you buy X amount of mobile phone charging kiosks from them. They find a site for you, position the kiosk, maintain the kiosk. The kiosks have the facility for advertising where they probably make the money off. It seems all i have to do is maybe collect the money.
Dose anybody have any Knowledge or first hand experience of this outfit 'readymadebusiness4u'
Also what are peoples thoughts on this opportunity.
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D
David A
- Original Poster
- #37
My emphasis!
Having looked at the video, I can see a major off-putting factor:
At 1.59 a message pops up on the screen "Monitor your Phone. Not responsible for Lost, Stolen or damaged devices" (Their capitalisation).
Knowing the number of thieving scroats that hang about public areas in many towns, I would think you'd have to hover over the machine with a baseball bat warding off the hordes of miscreants just looking for the opportunity to steal it.
They won't be doing this for nothing, and I bet you'll just be left with the crumbs after their fees are taken out.
Another danger point is that (unless I read it wrong) they expect you part with a £500 deposit - no indication if this is refundable - before you even get to see the terms and conditions of the operation.
Thumbs down from me.
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businessfunding
- Original Poster
- #38
Readymadebusiness4u are just the agency handling the franchise, I believe (there are very similar things on other franchise sites). On reading it would appear that they employ 10 year-olds to write their copy.
As a general piece of advice I would ask for some very clear/concise facts regarding what is expected from you, and what they will provide to achieve their target figures.
I would also expect some reference sites where I can see this in action and speak to the operator.
And obviously I wouldn't hand over any money until you are certain you want to proceed.
As a general piece of advice I would ask for some very clear/concise facts regarding what is expected from you, and what they will provide to achieve their target figures.
I would also expect some reference sites where I can see this in action and speak to the operator.
And obviously I wouldn't hand over any money until you are certain you want to proceed.
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Thanks for the feed back so far keep it coming.
Obviously i'm not going to parting with my hard earn cash easily, hence why i am using here as one of my research tools.
I already have the star of a long list of questions
This was/is one of the first opportunities i've looked at that might tie in with my 3 weeks off, it's more of a part time thing i'm looking for so if anybody out there has any ideas or are doing anything in their own area that might sound interesting.
Obviously i'm not going to parting with my hard earn cash easily, hence why i am using here as one of my research tools.
I already have the star of a long list of questions
This was/is one of the first opportunities i've looked at that might tie in with my 3 weeks off, it's more of a part time thing i'm looking for so if anybody out there has any ideas or are doing anything in their own area that might sound interesting.
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