Franchising my business model
Discussion
I've started reading a little about franchising.
My firm is doing really well for a new start-up. We made a profit in year one and year two is looking extremely healthy.
I don't particularly want to use my company name (It's only really of value in the local area because of a historical connection). Is it possible to franchise a business model under a new name?
Does anyone here franchise their business?
My firm is doing really well for a new start-up. We made a profit in year one and year two is looking extremely healthy.
I don't particularly want to use my company name (It's only really of value in the local area because of a historical connection). Is it possible to franchise a business model under a new name?
Does anyone here franchise their business?
I guess it depends on what you are offering a potential franchisee.
Playing devils advocate for a second, what is to stop me from buying x number of nice-ish cars, a decent phone number and then taking people home from town at £2 a mile?
If you could offer them something different, and have the franchisee feel its worth paying you £x for that information then the world is your lobster
Playing devils advocate for a second, what is to stop me from buying x number of nice-ish cars, a decent phone number and then taking people home from town at £2 a mile?
If you could offer them something different, and have the franchisee feel its worth paying you £x for that information then the world is your lobster
mcflurry said:
I guess it depends on what you are offering a potential franchisee.
Playing devils advocate for a second, what is to stop me from buying x number of nice-ish cars, a decent phone number and then taking people home from town at £2 a mile?
If you could offer them something different, and have the franchisee feel its worth paying you £x for that information then the world is your lobster
The key thing I can offer is a profitable business model that has been proven to work. They can use our experience and contacts for advertising, securing contracts, financing vehicles at good rates, recruitment etc and they can take advantage of watertight credit control - They just look after the cash. All for a fixed monthly cost. They get a national umbrella to operate under with all logo's etc. We source all their IT and phones.Playing devils advocate for a second, what is to stop me from buying x number of nice-ish cars, a decent phone number and then taking people home from town at £2 a mile?
If you could offer them something different, and have the franchisee feel its worth paying you £x for that information then the world is your lobster
Whaddya think?
LivinLaVidaLotus said:
Franchising is all about the brand, unless you're planning on doing a lot of brand building or you've got a unique product that people can't replicate themselves, then franchising isn't going to work.
I just wrote about 2000 words in reply and basically talked myself out of it 
Plotloss said:
Yep, put yourself in the shoes of a potential franchise buyer.
What are you going to offer him that differentiates your franchise from him setting up his own taxi firm?
fWhat are you going to offer him that differentiates your franchise from him setting up his own taxi firm?
k all really. The difference is the people that run it... And I can't do that for them. That's what talked me out of it.A young chap in my neck of the woods did a similar thing to you, and it worked really well.
he "franchised" his hire name out to a number of "licensed" drivers. He advertised the service, handled the bookings etc whilst they fulfilled the contracts.
The franchisees have to supply their own cars (chose from a select list to fit his profile), keep them to a set standard of cleanliness, perform to set service standards, and they pay him a fee.
Some of the fees come on a "pay per booking basis" and others come in the form of a set monthly sum.
I'm afraid that's all I know about the business - gleaned from a nosey conversdation over a protein shake in the gym!
best of luck
Justin
he "franchised" his hire name out to a number of "licensed" drivers. He advertised the service, handled the bookings etc whilst they fulfilled the contracts.
The franchisees have to supply their own cars (chose from a select list to fit his profile), keep them to a set standard of cleanliness, perform to set service standards, and they pay him a fee.
Some of the fees come on a "pay per booking basis" and others come in the form of a set monthly sum.
I'm afraid that's all I know about the business - gleaned from a nosey conversdation over a protein shake in the gym!
best of luck
Justin
Justin Miles said:
A young chap in my neck of the woods did a similar thing to you, and it worked really well.
he "franchised" his hire name out to a number of "licensed" drivers. He advertised the service, handled the bookings etc whilst they fulfilled the contracts.
The franchisees have to supply their own cars (chose from a select list to fit his profile), keep them to a set standard of cleanliness, perform to set service standards, and they pay him a fee.
Some of the fees come on a "pay per booking basis" and others come in the form of a set monthly sum.
I'm afraid that's all I know about the business - gleaned from a nosey conversdation over a protein shake in the gym!
best of luck
Justin
thats prettiy much how most cab firms work.. a mixture of drivers own vehicles paying for "radio hire" and those rented to drivers with radio hire by the company.he "franchised" his hire name out to a number of "licensed" drivers. He advertised the service, handled the bookings etc whilst they fulfilled the contracts.
The franchisees have to supply their own cars (chose from a select list to fit his profile), keep them to a set standard of cleanliness, perform to set service standards, and they pay him a fee.
Some of the fees come on a "pay per booking basis" and others come in the form of a set monthly sum.
I'm afraid that's all I know about the business - gleaned from a nosey conversdation over a protein shake in the gym!
best of luck
Justin
rich1231 said:
Justin Miles said:
A young chap in my neck of the woods did a similar thing to you, and it worked really well.
he "franchised" his hire name out to a number of "licensed" drivers. He advertised the service, handled the bookings etc whilst they fulfilled the contracts.
The franchisees have to supply their own cars (chose from a select list to fit his profile), keep them to a set standard of cleanliness, perform to set service standards, and they pay him a fee.
Some of the fees come on a "pay per booking basis" and others come in the form of a set monthly sum.
I'm afraid that's all I know about the business - gleaned from a nosey conversdation over a protein shake in the gym!
best of luck
Justin
thats prettiy much how most cab firms work.. a mixture of drivers own vehicles paying for "radio hire" and those rented to drivers with radio hire by the company.he "franchised" his hire name out to a number of "licensed" drivers. He advertised the service, handled the bookings etc whilst they fulfilled the contracts.
The franchisees have to supply their own cars (chose from a select list to fit his profile), keep them to a set standard of cleanliness, perform to set service standards, and they pay him a fee.
Some of the fees come on a "pay per booking basis" and others come in the form of a set monthly sum.
I'm afraid that's all I know about the business - gleaned from a nosey conversdation over a protein shake in the gym!
best of luck
Justin
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