Let’s not quibble over words. I still own a franchise even if it didn’t involve a upfront cost. Of course, in a sense I’m leasing it. But I’m still correct to state I own a franchise.
What does the franchise do for you? Do they come and help get customers, provide access to national accounts? Do they help with your marketing? I don’t work with a franchise, so I’m wondering what they do for you?
Of course there are pros and cons with franchises. For me. I got it at no money down. I had an already established route of customers from day 1, and I got substantial bonuses for getting new jobs. They also provided training in the beginning and stationery.
Mikep, how do you feel about paying the royalties and the thought that if you want to get out of it you will most likely get nothing for the years you have invested to build the franchise’s route better for the next investor.
Some franchises are better than others but if a person does the initial leg work to acquire a few accounts they would save much money and would really have a real investment into their own business entity.
I don’t feel that bad. I knew what I was getting into it when I signed on. I wasn’t swindled. Usually when you work for someone, in whatever industry you are making someone wealthy, or prosperous. It’s just a fact of life. Now If they are treating you unfairly, not giving promised support, not commending and encouraging your efforts that’s wrong. But for someone to prosper from your efforts that’s the fact of life for working for someone in every industry.
In my case, I wouldn’t feel that bad since I have gotten generous bonuses for every single customer I get. If I got nothing, then I would have been out of there after a year or two.
The problem with some franchises are ones that have unreasonable contract demands, like Paneless’s 5 year contract, others don’t allow you to window cleaning ever again, or not in the same state or province for many years. I don’t believe unreasonable contract demands are fair.
I guess that is the main reason I dont see the “investment” in a franchise because someone else is getting wealthy, or prosperous over your hard work.
But that’s life. In any job you work in any industry you work, someone gets wealthy from your work. If one buys a franchise, I think the franchise owner should provide good value for the money they get paid, to provide training, support, a route they start with, bonuses or some incentive for growing the route.
Every single thing we do in life makes someone rich. We buy a coke, we make a bunch of people rich, we pay our mortgage, or pay the rent we make the bank or the the owner of the apartment building rich. Everything we do someone profits from. The real question is, is a franchise good for the person, do they get paid enough, do they get enough support, do they get commendation, is their contract reasonable if they decide to end the contract etc. The old, what’s in it for me?
If their is enough value and support given and the contract is reasonable, it may be worth the money for a certain type of worker.
In life, you are always going to make someone rich. It’s just in window cleaning we might resent it more because the startup costs are low (we don’t need to buy a factory, or spend millions in startup costs, the work is relatively simple, and sometimes the pricing is much easier to figure out). However, there is more involved in window cleaning, and not everyone has the skills, and guts, or circumstances do go on their own.
So after providing the initial route customers, is that all the franchise does for you, or do they give you continuing help?
They give you some support. But not to the degree they did at the beginning. If you have some questions they will answer it, or if you really struggle with something they will help.
Not really quibbling, Mike, just defining.
[B]HUGE difference between leasing and owning.[/B] Let’s not fool ourselves.
Leasing a home is FAR different from owning it.
Leasing a vehicle is FAR different from owning it.
Leasing a McDonald’s franchise is FAR different from owning it.
Leasing a WC franchise is FAR different from owning one.
[B]In reality, you own nothing when you LEASE. [/B]
Not trying to “dis” you either (I had the exact same deal as you for 4 years), just helping you and everyone else understand the difference. You have zero title to the clients you happen to be presently caring for as a franchisee.
So it’s not really accurate to say that you “bought” a franchise for “zero down”. You’re renting a client list, essentially, and skimming the lion’s share of gross invoice $$ as wages.
And again, not in any way trying to put you down here, just providing some context to more fairly compare franchising options for all these guys toying with ideas on this thread…
Just for clarity. I am not toying with the idea of a franchise (and I’m not saying you meant me either). I’m just trying to understand the advantages, because I couldn’t see any. If you buy into a McDonalds franchise you have instant name recognition, and the things that go along with it. Commercials, and the like, that I don’t think the indivdual store has to deal with. So I was curious about what the franchise does for you, what is the advantage?
If all they provide was an exsisting customer base, it doesn’t seem worth the money their asking to invest in them. If they don’t help with marketing, office structure, accounting, things of that nature, you could take that same money, and use it to create your own customer base, probably for less. If I am not mistaken, or am I?
I agree with BC. Being a franchise “owner” would have a great deal of pluses if you had brand recognition (Mcdonalds,Subway etc). Open a shop and customers stream in the door. I have had a hard time with franchises in window cleaning charging for their knowledge that they say will keep you afloat. After a year or two, whats not to know? My goal is to retire doing this and either (A) Sell it to an investor or (B) keep it in my family. Is there really a clause in your contract that says that you may never clean windows again if you quit the franchise? In the states I believe that it maxes out at 2 years and a 50 mile radius. Just wondering.
Steve
Kevin: My point is simply that I don’t like being needlessly corrected. I said nothing wrong in refering to my arrangement as owning a franchise. I looked up McDonald’s franchises and they too refer to owning franchises. I was verbally correct. So I take offense in being needlessly corrected.
If you want to speak to the broader issue of the advantages and disadvantages of franchise ownership, fine. I agree in a sense it is a lease. And you also own the right to use the logo, name, stationery, possible uniform etc.
If you look at McDonald franchisee owners what do they own? Nothing. They just have the right to use McDonald’s name, and are supplied with the uniform, ingredients etc. Of course the one difference with McDoanlds is the name recognition, and they do a lot of marketing on behalf of their franchises where as many window cleaner franchisor’s don’t.
I didn’t have the same contract as you. Mine was less rigid. I didn’t have to sign in for a 5 year contract. I got bonuses or more corretly credits for growing the route, which encouraged me so far not to go on my own. I also got thanks and praise for the work I did.
I don’t think people are being mislead about franchises. Most are very negative about the idea. However, franchises have pros and cons. If they are not restrictive contracts that lock you in, or forbid you from window cleaning for years, and if they provide credits, are priced well they can be of benefit for a brand new window cleaner.
I see a franchise being good for a dead broke young guy who doesn’t know how to window clean and has no previous business experience. Being in a franchise for a couple years in a non-restrictive franchise aggreement might train him to be a great window cleaner who can go off on their own.
So for the record I own a franchise. Nothing incorrect in that statement. However, I have no illusions about what would happen if I go on my own. I’ve read and reread my agreement many times.
Isn’t this just an argument about who has a franchise & who doesn’t. Does it really matter either way as long as you are putting money on the table?
[B]Mike:[/B]
Chill out, man.
I didn’t mean to hurt your feelings in correcting your argument.
(I will resist the urge to continue…)
[B]Winderwasher:[/B]
Yup - some of the contracts up here are extremely aggressive. I have very little respect for those owners, handcuffing people to servitude. 2-yr Country-wide non-compete clauses in the event you terminate your contract. Crazy, but people sign 'em regularly.
I know nothing about franchises but one thing I do know…
When it comes to women…
It’s cheaper to rent than it is to buy. 
Some companies here have their Subcontractors and/or employees sign a 2-5 year non compete agreement.
This is to avoid people getting hired just to check out the price of jobs and then solicit them with lower prices to take the work.
http://www.dwd.state.wi.us/jobnet/Scripts/Jobs-det.asp?OrderNumber=000844981
Hows this for starting pay
Kevin- Can they enforce that non-compete for 2 years, for the entire country legally? Do you not have a right to work up there? It would be near impossible for a company in the US to ban me from starting my own business (if I am not out trying to steal their jobs) Sure we sign non competes, but that is just so we would not go after their stuff.
Or is the non compete you are referring to include only the jobs under their banner?
A non compete is very hard to enforce here as it is
[B][SIZE=“6”]CFP:[/SIZE] [/B]
Yeah - it’s Crazy, Paul.
The company I’m referring to has an “airtight” 6 page legal contract that supposedly is 100% enforceable (according to the company owner, who I laughed at when he offered me a job 3 years ago under fabulously exploitative terms), and the contract absolutely prohibits doing ANYTHING even remotely close to window cleaning, either as a proprietor, partner, agent, owner, ANYTHING. No window cleaning of any window, period, for 2 years. I am also under the impression that it is continental North America, but it may just be Canada. If its cross-border, I don’t know if that would be legally enforceable or not.
It is an extremely aggressive contract, and one that has caused me to lose a lot of respect for the owner. He essentially handcuffs the “franchisees” to him, and leaves them hanging high and dry if they leave. He has become very wealthy along the way, to be sure, and lots of his guys have been “drinking his Kool-Aid”, if you know what I mean…
He justifies it by saying that they all know going in what the terms will be, but I can’t agree with it. Protecting your own client list is understandable. Sabotaging a tradesman for 2 years is unreasonable - in my books anyway.
I have warned many a friend to steer clear of doing business with him.
As for the “whats legal and not legal”, I think that whatever you agree to in writing is legal, as long as no national laws are broken by adherence to the terms.
If I agreed to never eat a hamburger for the next 3 years - in writing - and agreed to pay you $50,000.00 if you catch me eating one, and we both agree to it and sign the contract, and you CATCH me eating a burger, I think I would owe you $50,000.00
[B]Stupid, sure, but legally binding.[/B] [I]I think.[/I]
[B][SIZE=“6”]Superior:[/SIZE][/B]
Just astounding how foolish some people (sorry - some COMPANIES can be). Check out this sequence of statements from that job listing by Fish:
[INDENT]"[B]$6.50[/B] Per Hour [B]to [/B][B]$15.00[/B] Per Hour"
“We provide training pay, then pay is based on your performance when [B]you earn what you are worth.[/B]” (apparently your worth isn’t much)
“Tired of [B]not being appreciated?[/B]…We are looking for candidates that maintain positive attitudes…” (sure, I can’t wait to be appreciated by someone who believes I’m worth a whopping $6.50/hr up to $15/hr, I’ve got a great attitude!)
“Work for a family run business, where your honesty and [B]hard work will be rewarded.[/B]” (that is, up to $15/hr. You’ll start at $6.50/hr though…)[/INDENT]
Who writes these ads? I hope they taken their schizo meds before they operate a motor vehicle tomorrow…at least I hope they are on meds. If this is the real them, they win my “most arrogant person of the week award”.
