Aug 11
15
Franchising – The New Way To Do Business
(and take control of your future…)
Some Pluses:
+ Your business is based on a proven idea. You can check how successful other franchises are before committing yourself.
+ You can use a recognised brand name and trade marks. You benefit from any advertising or promotion by the owner of the franchise – the ‘franchisor’.
+ The franchisor gives you support – including training, help setting up the business, a manual telling you how to run the business and ongoing advice.
+ You have exclusive rights in your territory. The franchisor won’t sell any other franchises in the same territory.
+ Financing the business may be easier. Banks are more likely to lend money to buy a franchise with a good reputation.
+ You can benefit from communicating and sharing ideas with, and receiving support from, other franchisees in the network.
+ Relationships with suppliers have already been established.
Not big business though, is it?
- UK 2010 turnover: £12.4 billion
- +5% v 2009
- 9 out of 10 franchises in operation for 2 years or more are in the black
- 72% of new businesses (0 – 2 years) are profitable
- Less than 4% of franchised businesses went under in 2010
Franchisors are just small part players, aren’t they?
McDonalds, Cartridge World, Chem Dry, Subway, Mr Handyman, Sharkeys Cuts for Kids, Hertz, Molly Maid, Bairstow Eves, Autocare, Snap-On Tools, Tumble Tots, Progressive Sports, United Carpets, The Rugby League Super League, The Alternative Board, Cash Converters, Hallmark Babies, Pizza Hut, Lloyds TSB, Domino’s Pizza, Apollo Blinds, Perfect Pizza, Rohan, Century 21, Signs Express, Sameday UK, and 000’s more!
But it costs a fortune to set up!?
- McDonalds: £125,000 – £325,000 (depending on location and size)
- One off fee of £30,000
- Monthly charges: rent (based on sales and profitability); a service fee of 5% of sales; marketing contribution of 4.5% of sales.
- 20 year commitment
- 9 months unpaid training
So I was right then???
Well, let’s check out some real “turn-key” business opportunities…
- Progressive Sports: £4,950 – £14,950 franchise license for 50 – 150 School Areas
- Petite, Standard and Premier Franchise Agreements – open areas
- 5 year term
- Sharkey’s Cuts for Kids: £23,500 franchise license
- Plus Shop Fit Out – Leasing Options available
- 5 year term
- Mr Handyman: £25,000 franchise license
- Plus Working Capital as identified by Franchise Business Plan
- 10 year term
- The Alternative Board: £28,000 franchise license
- Plus Marketing & Training to get started and Working Capital
- 10 year term
…And many other Franchises available.
Check out the current franchise listing at www.executivesontheweb.com and give us a call.
In all cases you will need to decide upon the amount of money you’ll need to invest into marketing your new business; and remember, you’ll still need money to pay for all the usual household bills until the money starts rolling in…
That’s where we at Merivium come in!
We’ll guide you through the process, from an initial telephone interview to find out what you want from a franchise; how much you’d like to invest; what is the “right” type of franchise to match your skills; we’ll arrange meetings with the franchise holders and current franchisees so that all your questions are answered; we’ll even give you some questions to ask to find out the answers you’ll need!
That sounds like an expensive service – how much will it cost me?
Nothing! De Nada! Zilch! Not a Penny!
- We are independent advisors and only take a small commission from the franchisors when you sign up.
- We will only put you in touch with the franchisors who can give you the best return on your investment.
- We want you to put your hard earned money into your business, not ours.
- All we ask of you is that you are genuinely considering franchising as a serious business option.
- Contact us today
So take control of your future and let’s help you get started with your own franchised business. Here’s to your success, you know you deserve it.
Sources: British Franchise Association / Nat West / Sunday Times
