Would buying a franchise be worth it if you could earn $100/hr doing the work?

See, this is a fascinating irrational human thing.

Even if you could earn $100/hr you would be mad at the hefty royalty.

Funny, eh?

Okay, let me raise the stakes.

What if you were grossing $200/hr but only kept $135? Would that be acceptable? Would it still be worth it?

That’s even more royalty.
almost 34%

that’s like, if you grossed $10,000 a day by only kept $5,000 would you do it?..I’d figure out how to make the full $10,000.

Interesting, Matt.

Do you know how to earn $200/hr cleaning windows? If so, why aren’t you doing it now?

What if the franchisor taught you and enabled you to do so?

Same goes for this. Funny how you would resent earning $5,000 under these conditions.

Sorry, this sounds harsh. Didn’t mean it that way.

I don’t think i would do it. Why pay what you could keep yourself. I believe there are enough rescources out there that a franchise would not be up my alley.

The big thing with a franchise is that the marketing is usually taken care of with the fees, and start up $. Basically the hard thing to do is to teach someone to make that much why would they stay with you as a franchise? Knowledge is a dangerous thing, as soon as you know it, it gets harder to pay someone else for nothing.

I think that a high start up, comes with TONS of marketing and a small royalty to someone to do the marketing sounds better. do you know how many people would pay $10,000 to start up if it came with $5,000 of marketing already done, and someone to assist in growing? Think of the $5,000 as a retainer for all the knowledge you know and all the marketing studies that went into YOU learning.

Do you know how many people would GLADLY pay $1,000 for someone to send postcards and e-mails and other stuff every month for you? after a year spend $2,000? I know that is a drop in the hat for marketing but small companies can grow to big ones.

I see what you as the franchisor want…Basically you are buying stock in a company. If because of your knowlege someone earns $200,000 a year, you want to make some of that. It is a great deal for the franchisor, but it is hard for people that own a business to become an employee in essance. They need to GET something for it.

say for even #'s sowmeone makes $100,000, but pays royalties of $20,000 That is 200 hours they worked for free, thats a hard bullet to bight. Now smeone who is completelly new, like fish people pay the $50,000 and what they get for that is almost a turn key opperation. Training, equipment, and even accounts. See what they are actually getting, they can justify it.

Sorry for the long windedness, but i would say no on my part. I personally would hate to start over.

Cool, thx for the feedback.

In this example, what you would be “getting” is the highest hourly rates in the industry. Higher than Fish or anyone else. As you said, anyone can start and succeed at a window cleaning biz. But it’s very rare to pull numbers of $135 consistently.

What’s that worth?

The biggest problem with this is resentment. How do you address and defuse that part?


The resentment part is hard yet easy. When people buy to get something, in this case you cant say they are getting gauranteed results, because results can be achieved by anyone. Fish gets past this by giving people equipment AND they have alot of jobs that they will hand you when you start. The knowlege is good untill they know it.

Knowledge is like house. I find someone who knows more about houses then i do (realtor, inspector, etc) they help me and i pay them for it, after that i HAVE the house, I am not going to pay the realtor ever month for as long as own the house right? EVERYONE would resent that. But what about a condo? You pay fees as long as you live there right? What do you get for it? Mowing, roof repairs, landscaping, snow removal, blacktop, windows. Well alot.

Yeah people may say there fees are to high but, never do they resent the condo association, because they are getting something.

In this case not only are they paying you but it is really a double whammy. They are out there WORKING for it and having to give it to someone.

I pay for Service Magic, never once did i resent them, because even if i dont land every lead i still am GETTING something.

The trick is to find WHAT people value as worth the money that they pay you. Buy a book, or rent it for ever?


I have been very vague as to what would be offered in this scenario I guess. It would be systems and insider knowledge, yes, primarily, that had been proven to work, and access to more of it as needed, monthly.

Thanks for the feedback. Fish gives a turnkey system to get lots of average priced work, from what I know. I’m talking about something a couple notches up from that, for window cleaners that already know what they’re doing.

Tru. If your buying knowledge then there has to be an upfront fee and NO royalties. I know that is not the best for the franchisor, but, people WILL and DO pay for knowledge, they only continue to pay for knowlege if they continue to recieve new knowledge. I think it may be hard to LOCK someone into continuing to pay for knowledge. If they deem your knowledge not worth it then they can’t get out of it, because they would have to recreate there company from scratch.

Just my opinion. Tryin to help…

Of course I’m doing a pretty bad job of explaning it, too :slight_smile:

I agree 100%.

There would have to be a constant stream of profitable, real world insider knowledge provided.

As far as the locking part, I would think that the franchisor would have to give franchisees the option of walking away at any point after an agreed upon interval of time.

Ideally, he would provide so much insider knowledge that the franchisee would never want to cut themselves off.

Even if it cost $500 or $1500 or $2500 per month or whatever, in lieu of a franchise fee or royalty payment.

Perhaps that would be the most desirable arrangement? Upfront investment + monthly flat-fee for as long as you wish? Quit anytime?

Me personally that seems alot better. Remember Kevin, fear is more of a deturant than desire is a motavator, remove fear (NO OBLIGATION, 100% satisfaction guarntee) and you SELL desire. I learned that from a great man :wink:

I could finance knowledge though. Kevin you could maybe get more people to buy your $100 book,
if you charged them $5 a mouth for 20 months.
People pay way more then they should for things all the time.
Why do people pay 24.99 a month for a credit report, when in reality so few people really need that kind
of information all the time. The average person has 3 significant new items on their credit report per year.
and about 95% of the time people are perfectly aware of the change without seeing their credit report.

Good point. Financing is always attractive.

Excellent point. I hadn’t thought of any of that stuff yet.

And that guy sounds cool :slight_smile:

Since you said it was hypothetical and you are not doing it, nothing is happening. You are just making indirect and implied claims that you
can do it. What does that mean?

Probably the same thing that the rest of us mean when we ask questions about potential bids or jobs or the like. Perhaps Kevin is simply conducting market research for a potential business idea.