Franchising Archives

Is a Plumbing Franchise Feasible?

If like me you enjoy plumbing, then why not consider a plumbing based franchise as a career move? You may think that you will need to spend several years as an apprentice and several more gaining valuable experience – but you would be wrong!

If you are a practical person and naturally good at DIY projects, the training offered in a plumbing franchise can quickly turn the enthusiastic amateur plumber into a skilled professional. The reason that this is possible is the nature of the franchise approach to developing a business chain.

A franchise is often a tried and tested business model with a standard range of products or services that are sold in a certain way. Consider Macdonalds restaurants. Everything from the way the staff are trained and dressed to the burger recipe and size, and the time for which it is cooked on the automatic grill are the same. If you buy the franchise you are simply taught how to operate the rigidly fixed system so that it is not possible to stray from the tried and tested pattern.

How can this be applied to a plumbing franchise? Most of the jobs that need doing are standard problems – changing a washer, fixing a leak, replacing a cistern, repairing a burst pipe etc. These are skills already within the scope of the DIY enthusiast. More complicated jobs, such as installing a complete set of pipework to a new house may require more experience. This is where the resources of the franchiser come in. They are able to input their experience into the job acting effectively as supervisors to the new franchisee plumber. A plumbing franchise allows varying levels of input from the central administration team as the trainee plumbing franchise develops its own expertise.

What size fittings, recommended configurations, compliance with regulations and other standard areas of the plumbing trade are all coordinated by the franchiser.

If you do a google search of ‘plumbing franchise’ you will see how many such franchises are available in the UK, USA and around the world. Companies such as Dyno Rod (selling Dyno Plumbing), YourPlumber-UK and Plumbrite all provide respectable franchises in plumbing. If you are interested in taking one on, just remember to treat a plumbing franchise just like any other potential business opportunity – do your due diligence properly before you part with money. Not all franchisers are the same – many offer a fantastic start in owning a business of your own and a more secure way of working for yourself, but may cut corners in an attempt to make money themselves. Take care choosing.

Home Based Business Franchise

There are many reasons for wanting a business opportunity based from your home. You may wish to escape the pressures of working in a city environment. You may wish for the independence of working alone, without supervision. You might want to be your own boss and working from home is the best route to achieving this. It might even be the case that you need to look after your children but also need to earn an income in between the feeding and cleaning!

The reason for wanting your home working to be a home based business franchise could be that you are looking for the added certainty that a franchise gives of providing a business that will work. Franchises are one way of going into business for yourself with the added back up of the franchiser to provide a tried and tested business plan, training and a wide range of support.

A home based business franchise is not going to be the type of business you normally associate with a franchise operation – such as Macdonalds, Pizza Hut or Prontaprint. However, many substantial franchises can be run from a home base so long as you have an office area from which to manage the business.

Consider a cleaning franchise? There are two ways that you can start this type of business, either leading a cleaning team that goes around your clients’ premises or as a manager of several teams. In both cases the critical point is that the work takes place at clients’ premises! You do not need a factory or staff facilities. Because the operation is a franchise you are supplied with materials and other consumables on a regular basis and do not have to locate bulk purchases of cleaning fluids for example yourself. Therefore stock storage is not a problem.

What about buying an accountancy franchise? You can work at home on your clients’ books and records, visiting their offices when necessary.

Many other franchises can be packaged into a van – vehicle valeting, wall tie fixing, window replacement and many more trades type businesses. These can be administered from your home computer and the tools and materials kept in you van.

To be truly home based so that you can keep an eye on a sleeping baby perhaps you may want to consider a business that can be managed from your kitchen table. As these types of businesses are getting smaller they become less attractive for the franchiser to develop into a package to sell. Therefore, one word of warning, if the business is not regulated by a recognised trade body such as the the British or American Franchise Association or similar – view any business opportunity with a certain amount of caution. Do your due diligence properly and be aware that the smaller the business, the less likely it will succeed as a franchise chain. Home based business franchise opportunities usually mean that you are based at home but still have to take the services to the customer.

Franchising – the Safe Way to Start a Business?

There is no safe way to start a business. A good franchise however offers more security than starting a new business from scratch. It should offer a tried and tested business plan, using an established brand and using the principal’s expertise and experience to help establish the new entrepreneur.

However, comanies which offer franchises for sale (franchisors) are not all as reputable as might be expected. In fact some business owners that are doing poorly at their business may see franchising as a way to improve their fortunes and make some money. By using some clever marketing they can make their business look attractive and sell the right to establish branches (or franchises) around the region or further afield.

I undertook a forensic accounting investigation into a franchise for car valeting recently where a businessman had failed in previous car valeting company and was attempting to start again. For £17,500 and a percentage of ongoing income, some 5%, a person was supposed to be up and running with at least his first 30 clients ready and waiting for his services. Unfortunately after waiting around 3 months for training, then realising that the franchise fee did not include a fully fitted sign written vehicle – but only a down payment on one – there were only a handful of customers waiting. The customers, all with £20 money off vouchers, only wanted the basic £30 service – not the £200 full valet.

As a forensic accountant I always interview the victims in a scam to find out the full background – to see if it is a fraud or just sharp business practice. In this case it seemed that the person setting up the franchise had lost all interest when his previous business folded and had no enthusiasm for his new venture. Therfore he was unable to give the full support that the new franchisees needed.

Fortunately there were only three recruits, and all now have learned the business fully and are in the process of establishing thriving trades. The franchise company was closed down by the authorities (Companies Investigation Branch) and hopefully the message can be conveyed to prospective franchisees considering a similar venture:

  • Check out the history of the franchise company – see if it is a long established provider or is it a fly by night fraudster.
  • Is the franchisor a member of the Franchise Association (USA or UK or wherever the company is trading).
  • Are you able to choose a number of franchisees to visit and discuss the business with or are you simply steered towards a flagship operation? You need to speak to as many recruits as possible – better if they have been with the franchise company for some time.
  • Do all the due dilligence you would do setting up a non franchise business – for example do your own business plan and do not rely on one given to you.
  • Use a solicitor who specialises in franchise law.

Although there are many frauds and scams in the franchise world, generally it is a more secure way of starting a business. Just do your homework first!

Mark Jenner

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