Franchise questions
Discussion
I think it depends entirely on the company selling you the franchise.
My dad has an 'Amtrak' franchise - the parcel delivery company. He got in at the very early stages and has done well with it.
Amtrak now sell very little areas to owner driver types and he says that he fails to see how they even cover their costs.
Research it thoroughly.
Oh and keep an eye out if you keep your teritory/area/license for ever or for a limited amount of time. Otherwise, just as you have built up a nice little business they might decide to charge you an extorionate amount to renew.
My dad has an 'Amtrak' franchise - the parcel delivery company. He got in at the very early stages and has done well with it.
Amtrak now sell very little areas to owner driver types and he says that he fails to see how they even cover their costs.
Research it thoroughly.
Oh and keep an eye out if you keep your teritory/area/license for ever or for a limited amount of time. Otherwise, just as you have built up a nice little business they might decide to charge you an extorionate amount to renew.
a friend of mine (an old employee) asked me the same question when he was interested in buying a shi*e franchise.told him to forget it and get some training and spend his money starting up independently.anyway,he decided the promise of £1200 leads almost every week was too good to resist,and invested nearly £18000 of borrowed money.five months later,after struggling by on a few crap jobs a week,the franchise owner forces him out by claiming a breach of contract (which he aided),and gives him less than £8000 back.too many scams about to risk a franchise nowadays!
I agree with the independant route.
I see a need / business in the Armorfend products as well as diamond bright and the hood coating stuff offered here a couple of days ago. www.pistonheads.com/sales/detail.asp?i=35170&s=355
That would be the trick, to offer a range of different but comlimentry products and solutions. That way as one waxes the others wayne (wrong spelling I know)
(edit: bloody hell, that came across all new agey!)
Shame I am only 15 months into this company otherwise I would be doing the above as well.
>> Edited by vex on Wednesday 26th January 09:25
>> Edited by vex on Wednesday 26th January 09:26
I see a need / business in the Armorfend products as well as diamond bright and the hood coating stuff offered here a couple of days ago. www.pistonheads.com/sales/detail.asp?i=35170&s=355
That would be the trick, to offer a range of different but comlimentry products and solutions. That way as one waxes the others wayne (wrong spelling I know)
(edit: bloody hell, that came across all new agey!)
Shame I am only 15 months into this company otherwise I would be doing the above as well.
>> Edited by vex on Wednesday 26th January 09:25
>> Edited by vex on Wednesday 26th January 09:26
Hi Ian,
I looked into the Chipsaway franchise about 3 years ago, and the best bit of advice I can offer you is to speak to as many existing franchisees as you can find - not just the ones the Franchisor puts you in touch with, but as many as you can find.
Amongst others, I spoke to a guy in Portsmouth who at the time had been running a Chipsaway franchise for 3-4 years with 4 vans on the road. He made a few points that were interesting:
1. Whilst the equipment and consumeables from Chipsaway are excellent, similar equipment is available to purchase and would cost you in the order of £2 - £3k to get up and running. An experienced independant SMART repairer with this equipment will do a better and quicker job that a new Chipsaway operator.
2. Whe he first started up, the franchise was "a license to print money", but he felt the market was getting flooded. This was 3 yars ago, remember.
3. The franchisor is quite strict on certain things, for example you at the time were required to use a new Mercedes Vito van that had to be replaced every 3 years.
If you are seriously looking into this business, I would suggest you do some test marketing by banging on the doors of your local car dealers - I tried this and was surprised how many people in my area (Bournemouth) already had had the same idea. If you can see a gap, them buy the equipment and practice like hell in your spare time until you can do a good quick job. Then, if it's not for you, you've only lost £3k and not £30k and your job.
Sorry if any of the above sounds patronising - I don't mean it to, and hope it's of some help.
I looked into the Chipsaway franchise about 3 years ago, and the best bit of advice I can offer you is to speak to as many existing franchisees as you can find - not just the ones the Franchisor puts you in touch with, but as many as you can find.
Amongst others, I spoke to a guy in Portsmouth who at the time had been running a Chipsaway franchise for 3-4 years with 4 vans on the road. He made a few points that were interesting:
1. Whilst the equipment and consumeables from Chipsaway are excellent, similar equipment is available to purchase and would cost you in the order of £2 - £3k to get up and running. An experienced independant SMART repairer with this equipment will do a better and quicker job that a new Chipsaway operator.
2. Whe he first started up, the franchise was "a license to print money", but he felt the market was getting flooded. This was 3 yars ago, remember.
3. The franchisor is quite strict on certain things, for example you at the time were required to use a new Mercedes Vito van that had to be replaced every 3 years.
If you are seriously looking into this business, I would suggest you do some test marketing by banging on the doors of your local car dealers - I tried this and was surprised how many people in my area (Bournemouth) already had had the same idea. If you can see a gap, them buy the equipment and practice like hell in your spare time until you can do a good quick job. Then, if it's not for you, you've only lost £3k and not £30k and your job.
Sorry if any of the above sounds patronising - I don't mean it to, and hope it's of some help.
No probs Ian,
Have been "lurking" for a few months, but thought I might have something useful to say on your post!
If you want any more info on Franchises, let me know. I did a lot of research 3 or so years ago, bought one and got my fingers well and truly burnt, then went back to being a 9-5 wage slave!
Seriously though, I think franchisors in general make a big play of the support you'll get from them once trading, but in my experience this amounts to little or nothing (I think name & shame rules will prevent me going any further!) If you can suceed with a Chipsaway franchise, you could probably suceed just as well and make much more profit going it alone.
Best of luck whatever you decide.
Have been "lurking" for a few months, but thought I might have something useful to say on your post!
If you want any more info on Franchises, let me know. I did a lot of research 3 or so years ago, bought one and got my fingers well and truly burnt, then went back to being a 9-5 wage slave!
Seriously though, I think franchisors in general make a big play of the support you'll get from them once trading, but in my experience this amounts to little or nothing (I think name & shame rules will prevent me going any further!) If you can suceed with a Chipsaway franchise, you could probably suceed just as well and make much more profit going it alone.
Best of luck whatever you decide.
I started about thirteen years ago with a Courier Franchise, the cost was about £12K plus startup costs.
After six years of legal wrangling we (6 of us) finally got out from under the control of the Plc that had bought out the original company.
Feel free to mail me offline for details but my advice would be DONT DO IT!!!!!
The money would be better spent on the wages of a manager or employee that knows the game already or on your own marketing or equipment.
A franchisor can help for the initial period (sometimes) but very soon you will come to despise them for the percentage they take from you for nothing and the constant hassles of having someone look over your shoulder.
If you are going to make it in a franchise business to any degree, then you can be almost sure that you could make it on your own, I was £40K a year better off for the same turnover as soon as got shot!
HTH
Nick
After six years of legal wrangling we (6 of us) finally got out from under the control of the Plc that had bought out the original company.
Feel free to mail me offline for details but my advice would be DONT DO IT!!!!!
The money would be better spent on the wages of a manager or employee that knows the game already or on your own marketing or equipment.
A franchisor can help for the initial period (sometimes) but very soon you will come to despise them for the percentage they take from you for nothing and the constant hassles of having someone look over your shoulder.
If you are going to make it in a franchise business to any degree, then you can be almost sure that you could make it on your own, I was £40K a year better off for the same turnover as soon as got shot!
HTH
Nick
With regard to SMART repairs (not just Chips-Away), ask the franchisee what they are doing about the EPA Solvent regs that come into force during Dec 2005?
You'll need/want a comprehensive answer...
In brief terms, solvent base coat will be illegal to produce/sell across Europe. SMART repairs make use of solvent based products for paint refinishing. Bricks and morter bodyshops (like mine) use water-borne paint but you need a socking great oven to bake it, something that a mobile repairer will not have access to - and a collection of infra-red lamps won't work either....
You'll need/want a comprehensive answer...
In brief terms, solvent base coat will be illegal to produce/sell across Europe. SMART repairs make use of solvent based products for paint refinishing. Bricks and morter bodyshops (like mine) use water-borne paint but you need a socking great oven to bake it, something that a mobile repairer will not have access to - and a collection of infra-red lamps won't work either....
franchises are fine - they seriously protect you from the pitfaslls of 'going it alone' - as has been suggested - if you dont have a specific business plan. There are undoubtedly scams about, but if you do researchw ell then you can avoid em easily. CChips Away are well known so not same issues there I wouldnt have thought.
In response to the negative thing about leads etc... yeah sure...but if you DO decide on a franchise then you should expect to put work in to make it yours and develop own local business
friend runs the St Albans Colourtech franchise.....competitior to chips away but a bit more upmarket (he does porsche, fezza, lotus, lexus and jeep).
i honestly think that one reason fracnhises can get a bad rep is the sort of person 9no offence intended) who often goes for em. The franchuise sellers make it out to be 'your own easy businses for toss all work', which attracts the sort of person who cant be bothered to put in hard work and then bitches when it fails....
just my thoughts
Night
In response to the negative thing about leads etc... yeah sure...but if you DO decide on a franchise then you should expect to put work in to make it yours and develop own local business
friend runs the St Albans Colourtech franchise.....competitior to chips away but a bit more upmarket (he does porsche, fezza, lotus, lexus and jeep).
i honestly think that one reason fracnhises can get a bad rep is the sort of person 9no offence intended) who often goes for em. The franchuise sellers make it out to be 'your own easy businses for toss all work', which attracts the sort of person who cant be bothered to put in hard work and then bitches when it fails....
just my thoughts
Night
My point (which I think agrees with what Nightmare says in a roundabout way) is that if you are business-minded, then you can succeed without the "help" of a franchise. Those who are not business minded would probably not succeed whether running a franchise or operating independantly. I agree that a franchisee cannot rely solely on leads generated by the franchisor, but if these leads are used as part of the franchisors sales pitch, then the franchisor has a right to expect something, surely?
Again, I would recommend anyone thinking of buying a franchise to speak to as many of the existing franchisees as they humanly can, and perhaps ask if you could work for them for a week or two FOC to get a feel.
Just my 2p FWIW
>> Edited by Dilan on Wednesday 26th January 16:27
Again, I would recommend anyone thinking of buying a franchise to speak to as many of the existing franchisees as they humanly can, and perhaps ask if you could work for them for a week or two FOC to get a feel.
Just my 2p FWIW
>> Edited by Dilan on Wednesday 26th January 16:27
The basic package is £22,500, but you can add VAT to that naturally, Then there are all the add ons which start from £2000+ VAT.
Plus the Van at £324 a month, which you have to change every 3 1/2 years (VW Transporter)
Buy the way if you would like to take a simple test to see if you would be suited to a franchise you can take this test www.whichfranchise.com/diagnostic_tool3.cfm
I have looked into it but still cannot make up my mind to go franchise or start on my own (no experince)
Plus the Van at £324 a month, which you have to change every 3 1/2 years (VW Transporter)
Buy the way if you would like to take a simple test to see if you would be suited to a franchise you can take this test www.whichfranchise.com/diagnostic_tool3.cfm
I have looked into it but still cannot make up my mind to go franchise or start on my own (no experince)
Ian
I looked into the Chipsaway franchise last year & decided to do it myself. Reasons being: 20k gets you retail OR trade franchise, your teritory is only 20k population !!!, you have to buy all of your consumables from them & they can take away your 40k franchise if they find you going elsewhere.
There are several companies that offer training in this field but my experience of them is not good. poor quality training with little experience of the real world.
Best advice is to look at another type of business. There are too many people doing this now but the franchises/trainers tell you that you will be earning 1k a week, every week. This is possible if you are well in at a few big dealerships BUT getting in there is almost impossible. Therefore you end up focusing on private jobs where weather comes into effect. Wind, rain and cold are all big negatives when it comes to painting & you will spend many days not working. Also, with private jobs you end up spending loads of time driving to peoples houses doing quotes. More often than not the "slight scuff to the bumper" ends up looking like the car has been in a demoliton derby!
I know that I'm sounding very negative but I'm being honest.
Simon
I looked into the Chipsaway franchise last year & decided to do it myself. Reasons being: 20k gets you retail OR trade franchise, your teritory is only 20k population !!!, you have to buy all of your consumables from them & they can take away your 40k franchise if they find you going elsewhere.
There are several companies that offer training in this field but my experience of them is not good. poor quality training with little experience of the real world.
Best advice is to look at another type of business. There are too many people doing this now but the franchises/trainers tell you that you will be earning 1k a week, every week. This is possible if you are well in at a few big dealerships BUT getting in there is almost impossible. Therefore you end up focusing on private jobs where weather comes into effect. Wind, rain and cold are all big negatives when it comes to painting & you will spend many days not working. Also, with private jobs you end up spending loads of time driving to peoples houses doing quotes. More often than not the "slight scuff to the bumper" ends up looking like the car has been in a demoliton derby!
I know that I'm sounding very negative but I'm being honest.
Simon
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