Lets talk Franchises.

[Mikey P]

Fellow Le Tipian bought a Cartridge World (printer ink) franchise for $160K
For that he got their marketing material, training, a boat load of small equipment and a healthy pat on the back along with a "Go get em Tiger!".
He actually bought two. One for each side of town.
He has to rent a store front where logic would tell him to be on a beaten path so rent ain't cheap and he needs at least two employees on sight at all times.
One filling and one handling customers..
His wife keeps the books.
He was a contractor in his prior life. He got sick of the hard work and responsibilities.


A year into it I think he is barely breaking even.




So tell me, what would the Carpet Cleaning equivalent franchise have cost him?
One truck, training, marketing and so on.

 

[Dolly Llama]

He was a contractor in his prior life. He got sick of the hard work and responsibilities.




So tell me, what would the Carpet Cleaning equivalent franchise have cost him?
One truck, training, marketing and so on.

if he got sick of hard work and responsibilities, CCing work ain't no easier than being a contractor.
Unless he was a rOOfing contractor or drywall hanger.
Those jobs SUCK

..L.T.A..

 

[Mikey P]

He isn't interested in CCing personally, too fat, I just wondered how much a one truck deal would cost in comparison.

 

[Steve Toburen]

"So tell me, what would the Carpet Cleaning equivalent franchise have cost him?
One truck, training, marketing and so on."

The one truck and equipment obviously varies enormously Mike and I don't think I "wanna go there". But with your question re: "training, marketing and so on" my answer would be $695.00! One week intense training, over 1,000 pages of Systems and Procedures AND free on-going support with NO royalties. (Remember that the 160K is just the beginning. Your friend will probably be coughing up between 6% to 10% of his gross as on-going royalties forever and that is a huge hit.)

Sounds like our industry offers the better deal plus in the early years it can be run easily out of the house with no "dictates" from the head office. Therefore much lower overhead. Maybe your buddy should lose a few pounds and become your competition!

Steve Toburen
Director of Training
Jon-Don's Strategies for Success

PS Please understand that with the above comments neither Jon-Don, SFS nor I are dissing any of the excellent franchises in our industry. The Strategies for Success program is happy to co-exist and support any franchise. We are synergistic with what they offer.

In fact, IF I were going back into carpet cleaning today (perish the thought) I would very likely seriously consider a franchise, even WITH my background in SFS. Why? Two words: "Exit strategy". Given my "advanced age" (gotta beat Yeadon to the punch!) I would not have 20 or 30 years to build my brand, etc. And franchises are easier to sell because a reputable franchisor will help their franchisee sell their company. (For a fee. of course.)

It's all good. Even though I question the wisdom of what your buddy has bought into. 160K for cartridges AND with high mandated overhead too? Wow!

 

[Dolly]

I might agree with you Steve

All but one..................The kind of help you'd get out of that one, you may as well give it away.

 

[John Buxton]

I dont like franchises unless I the one selling them. No way am I gonna give someone 10% of all my earnings.

Not long ago there was some guy shilling Mr. Sandless on here or ICS so I checked em out. Almost $20K for the franchise plus you have to buy a vehicle they approve and have it wrapped.

I think it said they also get 10% of any additional work you may get like sanding and refinishing. And of course you can only use their products.

A little reasearch shows you can get into the same type of sandless refinishing for a $1900 piece of equipment, and the products are sold through distributors.

So figure $40,000 before you make a dime.

Most of the small mom and pop franchises I see is to keep the wife busy as a hobby.

 

[The Preacher]

i don't see why a sharp guy like Scott Rendall hasn't taken the SFS ops manual and his knowledge of branding and started a franchise???


PS i want 5% annually if he's runs with this!!!

 

[Farenheit251]

Listening to AM radio few weeks ago and they had a talk show about franchises. Selling franchises but they were also looking to find successful businesses to develop into franchises. They said a franchise should make the owner a fair managers salary plus an additional 15% return on his investment. This should be attainable in two years after start up. I thought 15% seemed a little thin especially if you are paying interest on initial investment.

 

[D.Layman]

Hey Brian-

How goes it? You gonna get back into a franchise? :wink:

 

[Dolly]

Frankly

You could not pay me to have a franchise.

The franchise I was in got all of the information for success
because of the willingness of us who learned the hard
way to succeed without their help. Then I don't have
to tell you what they sometimes did to the very people who
helped them get to the where they are now.

So............

I will keep my own earnings in my coffers and not line theirs.

Thank you very much.

 

[bob vawter]

I was kinna thinking about getting into selling franchises of franchise selling businesses......

 

[rhyde]

cash in your 401k and the big truck will do everything else for you

HIRE THE BIG TRUCK

just the walk ups alone



T

Not me i sold one of my kidneys and donate plasma every week :roll:

If you want to be the malevolent dictator running your business at your whims and fancy or run one truck chuck with you on it then a franchise likely isn't for you. The local Service master & Serv-Pro franchises i work with seem to do well the litmus test in my mind is multiply generations of family members and relative brought into the business at a later time.

 

[J Scott W]

I owned a franchise for about 4 years. The up-front cost depended on the number of people in your territory. I think my area would have cost something over $50,000 at the time I bought. I was able to purchase for $10,000 plus some other non-monetary consideration.

For some people it could have been a great deal. For me, taking $10,000 working capital out of my bank left me nearly broke and with no funds to market, etc. For this and a few other reasons, it did not work for me.

If I was looking to get into a franchise now, I would consider Professional Carpet Systems. A low up front cost, good training and marketing help. Technical help always available. Few restrictions on what products you use. And the big advantage, they only charge a royalty on NEW business they help you build.

Scott Warrington

 

[John Buxton]

I do have a buddy here that has the PCS franchise. He is doing as good as the rest of us lately, slow.

 

[Michael Rossi]

cash in your 401k and the big truck will do everything else for you

HIRE THE BIG TRUCK

just the walk ups alone



T

Not me i sold one of my kidneys and donate plasma every week :roll:

Just think what a weekly deposit at the sperm bank could get ya?

 

[Scott]

i don't see why a sharp guy like Scott Rendall hasn't taken the SFS ops manual and his knowledge of branding and started a franchise???


PS i want 5% annually if he's runs with this!!!

Several years ago I researched franchising and quickly lost interest when I found out the absolute BS the gov't requires of a franchisor. I have no interest at all to become a franchisor.

Scott

 

[Dolly]

You go tell em Scott...........

Your doing real well without them..............or it.........

 

[Chris A]

also have a friend with PCS, seems to like it, but as he had a mature business beforehand, I don't know what its done for him.

 

[rhyde]

cash in your 401k and the big truck will do everything else for you

HIRE THE BIG TRUCK

just the walk ups alone



T

Not me i sold one of my kidneys and donate plasma every week :roll:

Just think what a weekly deposit at the sperm bank could get ya?

Vasectomy....if i tried that i''d get nailed for fraud

 

[Mikey P]

This one looks promising..

http://www.argoclean.co.za/franchise.htm

 

[alazo1]

Darlene,
I see you added some services to your company.

How are you polishing stone?

Wood flooring?

Albert

 

[Dolly]

I sent you an e-mail Albert.....

Hope to here from you soon.............Take care

Also Mikey, That sure is a small trailer, I've already outgrown mine
and it is a 5 x 8 and tall enough to stand in.

plus, look at what you have to pick up and out........

Ouchy momma my back............

Looks cute but not practical to me. :?

 

[Jimbo]

I agree with Scott on this matter...the only one I would consider is PCS...others have asked me to join their organizations...but you had to pay fees based on the total gross sales...with no consideration for biz you had built before.

PCS seems determined to make their folks successful.- Jim