Discussion
As ever looking into ways of making my working life better and more enjoyable and potentially working for myself
Has anyone ever bought or run a franchise?
I have seen one I am interested in, major Brand, looks quite good but I have no idea about doing such a thing
Are they a good thing? Or a waste of money?
Has anyone ever bought or run a franchise?
I have seen one I am interested in, major Brand, looks quite good but I have no idea about doing such a thing
Are they a good thing? Or a waste of money?
Eric Mc said:
They vary hugely so there are very good ones and attrocious ones.
What you need to do is talk independently to someone who operates the franchise you are interested in - prefereably without going through the main franchise holder first.
Ah ok, so just try and find someone that is doing it already and speak to them?What you need to do is talk independently to someone who operates the franchise you are interested in - prefereably without going through the main franchise holder first.
I would imagine the main franchise holder would go over figures and projections etc (albeit optimistic to make me take it up)
You have to understand how franchise operations make money for the franchisor.
i) they will charge you a set-up fee/licence fee in order to obtain the licence to operate from them. This could be a substantial amount
ii) they may charge you for training costs etc so that you are up to speed on doing things "their way".
iii) there will undoubtedly be monthly/quarterly/annual franchise fees
iv) you may be obliged to buy certain products from them, such as packaging. stationery and certain items of stock
v) you could have to pay penalty charges if you use an independent supplier for any of the items they expect you to buy from them
So, even though you are technically running a business (usually as a sole trader but it could be through a partnership or limited company), you will not have the freedom of a truly independent business.
None of the above are necessarilly bad things but people entering into franchise arangement need to go in with their eyes wide open and be fully aware of the restrictions placed upon them.
For their part, the franchise operator will tell you that by going with them you are buying into an established brand with the comensurate advantage that gives you in not having to for advertising or promotion. They may even help you with advertising and promotion of your particular business.
Often, where the franchise falls down is when the franchise operator fails to lend the support they promised.
There are a number of franchise magazines (paper and on-line) and also a number of on-line forums.
I am not sure if running a franchise successfully is REALLY any easier than just setting up a business on your own.
i) they will charge you a set-up fee/licence fee in order to obtain the licence to operate from them. This could be a substantial amount
ii) they may charge you for training costs etc so that you are up to speed on doing things "their way".
iii) there will undoubtedly be monthly/quarterly/annual franchise fees
iv) you may be obliged to buy certain products from them, such as packaging. stationery and certain items of stock
v) you could have to pay penalty charges if you use an independent supplier for any of the items they expect you to buy from them
So, even though you are technically running a business (usually as a sole trader but it could be through a partnership or limited company), you will not have the freedom of a truly independent business.
None of the above are necessarilly bad things but people entering into franchise arangement need to go in with their eyes wide open and be fully aware of the restrictions placed upon them.
For their part, the franchise operator will tell you that by going with them you are buying into an established brand with the comensurate advantage that gives you in not having to for advertising or promotion. They may even help you with advertising and promotion of your particular business.
Often, where the franchise falls down is when the franchise operator fails to lend the support they promised.
There are a number of franchise magazines (paper and on-line) and also a number of on-line forums.
I am not sure if running a franchise successfully is REALLY any easier than just setting up a business on your own.
No not Food
Ah sod it there is no point in being secretive as anyone could do it I guess
Been looking at the Snap On franchises
http://www1.snapon.com/franchise/uk
Ah sod it there is no point in being secretive as anyone could do it I guess
Been looking at the Snap On franchises
http://www1.snapon.com/franchise/uk
anonymous said:
[redacted]
As a buyer, Snap On is a good franchise if you are prepared to work at it. The most common issue people have with some SO dealers is that they don't want to do a deal on the prices. No ones expecting the dealer to lose money. But if someones spending £2500 on an empty tool box, throw in a SnapOn fleece and something else small. The other problem is that they have a habit of trying to sell you stuff you've already got. And then trying to convince you to buy it as "it's on special offer" (which aren't great) Brilliant I already have that EXACT set of sockets, but I should buy these ones because they are new? Oh, and they get stupid about warranty claims.On the flip side, everything is on credit. So get used to recieving £10 a week from some people with bills of £500. And of course there;s the people that simply don't pay. Or disappear overnight with £XXXX of tools.
Rich_W said:
As a buyer,
everything is on credit. So get used to recieving £10 a week from some people with bills of £500. And of course there;s the people that simply don't pay. Or disappear overnight with £XXXX of tools.
Keyser Soze, Think you should read this bit again.everything is on credit. So get used to recieving £10 a week from some people with bills of £500. And of course there;s the people that simply don't pay. Or disappear overnight with £XXXX of tools.
Edited by trv8 on Tuesday 7th June 06:02
Edited by trv8 on Tuesday 7th June 06:03
A guy I used to work with was a Snap-On dealer, before he came to our garage
4 years after quitting, he was still trying to collect money from techs that hadn't paid when he gave it up. We're not talking small amounts of money either (about 35k from memory)
Then there were the technicians that had 'just left the dealership' owing money, and nobody knew where they'd gone - He spent hours trying to track them down
The only good news being, things like tool boxes are sold on finance, which then becomes a debt to SO themselves not the dealer
The reason he quit - Snap-on would reject stuff he'd replaced under warranty, meaning that he'd pick up the tab if SO wouldn't - It was either that or risk people not buying from him anymore.
4 years after quitting, he was still trying to collect money from techs that hadn't paid when he gave it up. We're not talking small amounts of money either (about 35k from memory)
Then there were the technicians that had 'just left the dealership' owing money, and nobody knew where they'd gone - He spent hours trying to track them down
The only good news being, things like tool boxes are sold on finance, which then becomes a debt to SO themselves not the dealer
The reason he quit - Snap-on would reject stuff he'd replaced under warranty, meaning that he'd pick up the tab if SO wouldn't - It was either that or risk people not buying from him anymore.
I sometimes wonder if E-Tyres is a good one: http://www.etyres.co.uk/franchise-opportunities/fr...
Lot's of people search the internet for tyres, and like mobile fitting.... Seems like it should be a relatively simple operation to run. Central sales, franchisee go's out and fits tyres. Bish bash bosh...possibly...
Lot's of people search the internet for tyres, and like mobile fitting.... Seems like it should be a relatively simple operation to run. Central sales, franchisee go's out and fits tyres. Bish bash bosh...possibly...
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