Originally Posted By: jsmith3 This post was automatically imported from our archived forum.
I have been doing inspections independently and a well known and established franchise is now up for sale in my area and has been offered to me, I feel I should give this some serious consideration. If I buy it I would be eliminating a big competitor and stepping into a business stronger than my own at this point, but I feel I would be giving up some independence and I also know my own business has not reached it’s full potential yet. It is a large investment that would require debt and I could use this money to build up my own. I would like some feed back on the pros and cons of franchises.
Originally Posted By: jmyers This post was automatically imported from our archived forum.
Jon,
As with any business, you need to make a business decision based on what your needs are.
It really comes down to whether you are comfortable with the debt to income ratio and I would certainly inquire about the financials of that franchise.
I would also look into the franchise area surrounding yours and how much of your business came from out of your area. Travel is always a big consideration so you will want to know how far you had to travel to make that amount of income.
You will also want to inquire how much your fees will be for that franchise and what do they offer for those fees. Like how much advertising they do and how often.
Originally Posted By: hspinnler This post was automatically imported from our archived forum.
Possible questions to ask them are how much territory will you have? Some have multiple franchises within a metropolitan area. They may break it down by county, zip code, etc.
Also, will you feel comfortable paying royalties forever in return for brand recognition, reduced printing fees, and whatever else? How useful and important are these perceived benefits? Are clients likely to hire you based on the franchise name or based on you and your qualifications?
Originally Posted By: Blaine Wiley This post was automatically imported from our archived forum.
I owned a franchise from 1995 to 2002. I sold the franchise, moved and am an independent now.
It was nice to get brochures for 6 cents each, truly discounted E&O, and much less expensive marketing materials. Reporting software came with the franchise.
It wasn't nice sending in 9% per week of gross revenues or being required to carry E&O. I did not find that there was a whole lot of name recognition, and that after 18 months in business the name of my company could have been anything and it wouldn't have impacted business either way.
It takes a while to recoup 10, 20 or 30K for the territory and the up front start up costs. My advice would be to take the UFOC to your attorney, and have him/her go over it with you prior to proceeding. That will be advice worth paying for!
Originally Posted By: twheeler This post was automatically imported from our archived forum.
Hi there,
I have been an independant inspector for 2 years, and my ambition is to build my business to a point where I will be able to branch out. That is the business way of doing things. If your good at what you do, the name will not be a benefit, but an expense.
Keep building, and the product will be yours, not someone else’s.
Originally Posted By: dbowers This post was automatically imported from our archived forum.
A home inspection franchise is not like a McDonalds Franchise.
Home buyers, realtors, lenders, etc don't throw themselves at your feet and start using you because you're now "Big Bobs Home Inspection Franchise" instead of "Accurate Home Inspections".
Like the boys said - there are pro's and con's. BUT in most areas the main stay of the HI business is 1-2 man shops that get USED because of the owners personality or way of doing business - not a FRANCHISE Company back in North East New Jersey or Tupalo Mississippi.