Service Franchises.

[JamesW]

There are several Pool Service Franchises as well as more than 100 home service related franchises that do almost any type of home service.

What is anyone’s opinion about home service franchises?

Do you use any, and if yes, which ones?

Does anyone own a service franchise?

If yes, why did you choose a franchise business over just starting your own business?

In my opinion, service franchises are mostly profitable for the franchisors who create these businesses and most franchisees end up losing money or barely breaking even.

 

[PoolStored]

In my opinion, service franchises are mostly profitable for the franchisors who create these businesses and most franchisees end up losing money or barely breaking even.

Yep.

DIY.

 

[JoyfulNoise]

The only franchises worth owning are the larger, brand name ones like McDs or Dunkin Donuts (Yum Brands). But the startup costs are huge - not only fees for buying in but you also have to float the loan for construction of the restaurant. I know a few business peeps/law school drop outs (got their JDs but never took the bar exam) who own franchises. But they do it as an investment group with a few them running the show while the others are mostly “silent” partners. If you own multiple franchises in slightly different market segments, you can often ride out the ups and downs and make a decent living off the profits.

But owing a one-off franchise … waste of time and money. They’re mostly legalized pyramid type schemes - the early investors make all the money and the last guy in the door is left holding the bag.

 

[JoyfulNoise]

Ask anyone who got caught up in the Lula Roe stretchy yoga pants craze … they’re all broke now.

 

[JamesW]

In my opinion, a McDonalds makes more sense because everything happens at a location where you can supervise the new people.

Everything is simplified and standardized.

There are only so many different tasks to learn.

A service franchise requires you to send out mostly unqualified people with no supervision to do much more complex work.

In my opinion, the franchises are mostly about creating an image with goofy graphics and uniforms but they are not really very good at actually doing the work.

Mostly, they care if the workers “Fit the suit”, meaning that they look good in the uniform and in the advertising, but they are incompetent when it comes to actually doing the work.

 

[JoyfulNoise]

House keeping services are like that. Around here we have a couple, one’s called “The Maids” and they drive around in pink Prius’. The ads make it seem like this nice lady will drive up, exit her car with a small bucket of cleaning products and enter your home. Then the next scene is your home sparkling clean with a smiling lady bidding you a fond farewell.

The Reality - the banged up pink Prius rolls into your driveway looking like it just went through a demolition derby. An old angry looking lady gets out and then 5 rather large and menacing looking ladies step out like the clown-car at the circus. They all look like they just got out of county lockup and none of them say a word except for the driver. They start pulling all sorts of cleaning equipment out of stuffed trunk - mops and buckets, backpack style vacuum cleaners, harsh looking neon green chemicals in nondescript spray bottles, etc. They enter your home like a goon squad throwing all your stuff around, vacuuming, dusting and moping up. Your kids run in terror as the “ladies” scowl at them with their gold teeth grilles. The dog hides. They’re done in an hour packing up the clown car and the angry old lady is standing at the door with her hand out waiting for the cash payment. She then barks at you that she’ll be back in 2 weeks but the crew might look different. You then spend the next 45mins checking the house to make sure all your valuables are still there …

 

[Mdragger88]

House keeping services are like that. Around here we have a couple, one’s called “The Maids” and they drive around in pink Prius’. The ads make it seem like this nice lady will drive up, exit her car with a small bucket of cleaning products and enter your home. Then the next scene is your home sparkling clean with a smiling lady bidding you a fond farewell.

The Reality - the banged up pink Prius rolls into your driveway looking like it just went through a demolition derby. An old angry looking lady gets out and then 5 rather large and menacing looking ladies step out like the clown-car at the circus. They all look like they just got out of county lockup and none of them say a word except for the driver. They start pulling all sorts of cleaning equipment out of stuffed trunk - mops and buckets, backpack style vacuum cleaners, harsh looking neon green chemicals in nondescript spray bottles, etc. They enter your home like a goon squad throwing all your stuff around, vacuuming, dusting and moping up. Your kids run in terror as the “ladies” scowl at them with their gold teeth grilles. The dog hides. They’re done in an hour packing up the clown car and the angry old lady is standing at the door with her hand out waiting for the cash payment. She then barks at you that she’ll be back in 2 weeks but the crew might look different. You then spend the next 45mins checking the house to make sure all your valuables are still there …

I know of a lady who operates a cleaning business like this - she has a van, she has to go pick everyone up every day & stay with them to make sure they do an ok job, no one steals anything, & accept payment from the client. Her employees can’t be trusted at all. This business model means that she can’t actually run her business or expand - it dies with her. She’s getting older so I hope she saved some of her money for later. She forfeited the possibility of future growth for immediate profit by going about it this way.
This is also the reason why I don’t have any employees aside from my daughter. I go into people’s homes & touch all their things when they aren’t there - that requires a certain level of trust. When/if I do get more employees they will need to be trained well and background checked etc. along with being paid a decent wage.
I have a hard time reconciling the thought of possibly having my name/business associated with someone else’s poor job so I’m not sure if I will ever expand much in that way. It’s definitely a leap of faith to do so. I have thought of pursuing other revenue streams for the business instead like YouTube, a blog, writing books etc.
The pink prius ladies that actually do the cleaning likely get paid very little as compared to an independent cleaner so they make up for that with volume & the franchise reaps most of the rewards. The employee turnover rate is rapid for those with that business model so there’s not much training involved- it cuts into the profits.

 

[Newdude]

I have a hard time reconciling the thought of possibly having my name/business associated with someone else’s poor job so I’m not sure if I will ever expand much in that way.

Most of my friends/family members are in the service industry or trades. Not a one of them wants to put their name on somebody else's work. So they are all swamped turning down a medium sized fortune in work they can't get to.

 

[PoolGate]

My FIL (RIP) had his own landscaping business for 40 years. He said the worst part was the employees. Most were transient and would skip his jobs last minute (mostly illegals) if they got offered more for another job without notice. None of them were interested in permanent employment. He never made more than a basic living from it. His wife was the accountant to save money.

Most home based stuff are indeed pyramid schemes like pots and pans and stuff like that. Anything that requires a party is usually a pyramid scheme.

 

[PoolGate]

My FIL (RIP) had his own landscaping business for 40 years. He said the worst part was the employees. Most were transient and would skip his jobs last minute (mostly illegals) if they got offered more for another job without notice. None of them were interested in permanent employment. He never made more than a basic living from it. His wife was the accountant to save money.

Most home based stuff are indeed pyramid schemes like pots and pans and stuff like that. Anything that requires a party is usually a pyramid scheme.

And once you've fleeced your friends and family you're basically done making any money.

 

[Mdragger88]

Good point-
Most of my clients are also my friends or friends of our family members so having an employee bust their valuables or worse, steal them is not something I really want to deal with. I might lose a long time client & a friend.
I understand that’s what insurance is for & accidents happen on occasion but people who are just around for quick $ could care less about your relationships with your clients so they are generally not as careful.

 

[phonedave]

There are franchises and then there are Multi Level Marketing "opportunities"

If the business model involves having parties, recruiting your "downline" all while kicking up to your "upline", it is a hard pass.

There are legitimate franchises. Some good, some not so good. Some care about their brand and product, other just care about selling the next franchisee.

I looked a number a while ago, when I was kicking around the idea of starting my own franchise. It came down to the whole employee thing. There were a number of franchises that looked good, but getting somebody I could trust to cover vacations, sick, etc. That was the tricky part. Once you loose a customer, and get a bad reputation, it is very hard to recover.

 

[Jaffles]

There are several Pool Service Franchises as well as more than 100 home service related franchises that do almost any type of home service.

What is anyone’s opinion about home service franchises?

Do you use any, and if yes, which ones?

Does anyone own a service franchise?

If yes, why did you choose a franchise business over just starting your own business?

In my opinion, service franchises are mostly profitable for the franchisors who create these businesses and most franchisees end up losing money or barely breaking even.

Why Franchise?
Sure there is an eliminate of safety and success, but also control and manipulation. I have mate who bought McDonalds stores in the past, they were great opportunities in the 80 into 90s, but corporate got greedy and now thay are over represented in almost every suburb opposed to every 10th. Yes you get a lot of intel on processes, or how to squeeze every last cent out of every cost, but corporate then take it in fees. So costs are still up but market share has been significantly reduced. As you say though, good manager or staff can make a great store to work at and flow nicely, or like a horse and cart down a rough dirt road.

I understand other comments about cleaners and their crews. In my experience most use price as their only or best offer. Perhaps always, but now more than ever service is still the answer. Returning calls in a timely manner, showing up on time or advising if you can't, being clean, and can string a polite sentance together will have 3/4 of the competitors dealt with. Aim for middle upper to upper for clientele as they have the cash but not the time. Can also leave a small gift as a point of difference. Or chuck some deal together for return service or 6 pack offer. The more you return its gets cheaper so to speak. Be honest and do what you say, own your mistakes, and that's about as hard as it gets in my experience.

My observations, small business operate best on 2 to 3 including the business owner. Trust, relationships, reliability, respect, and quality, are all assured as the boss is on hand but has the hands to cover the load. This also allows for holidays for all. After that it may as well be 15+ as it fractures and staff slack off and cause issues. 15+ requires a manager and crew foremen who in theory can work like a well oiled machine to keep the boss happy. I have not personally observed such booty.

Buy choosing the correct market you can charge more, and backed up by the reliable trust worthy service. After all "trust" is what you are selling first and foremost before anything else. However by charging more you can pay more. Happy staff happy business, no different to the happy wife happy life saying. Don't get greedy because without great staff the business is all yours. Yours for every job, every hour of the day, every day in the working week. People like to be wanted, respected, or be part of something, without them business is hard. Good relationships also makes life better.

I'm looking into a pool service business of all things myself. I have a local population of near 8000 and the business that once supported it went under from poor financial decisions. They tried to operate 3 business form one oversized overpriced location. Personally I would have focused on one business and relationships with 2 other business that specialise in the other 2 services. Just network rather than be everything.

I also have a friend who has a friend with a pool franchise I will be in no competition with. So I'm offering/asking to do a couple months of mornings with him to see its my liking. Pick up a few what to do and not to do tips from a successful operation. Plus gain confidence and pool knowhow. If his not keen on that than taking him to lunch will be plan B.

There is always risk and it will never be easy. To me franchises you pay to reduce that risk, building a business you take on more risk but freedom to do it your way is the reward.

 

[JamesW]

Why Franchise?

To me, it seems like there are way too many people just creating franchises out of thin air with nothing more than a stock franchise template.

They pay a graphic artist a few hundred dollars to create a logo, mascot and other branding items to create a slick looking package with polyester uniforms and graphics for advertising, but help on actually knowing the business is thin.

They just repurpose and repackage the standard industry education and they use some off the shelf software with maybe some private labeling.

They require huge upfront costs and then ongoing fees based on total revenue rather than profits.

They want a percentage of revenue because they know that there will be no profits.

They sell to people who work in some Dilbertian Office and they dream of owning their own business.

The franchises capitalize on this dream with the promise* of “Being you own Boss”, “Financial Freedom” blah, blah, blah.

*All statements are always qualified and expressly denied any sort of certainty.

BTW, if you want to buy a franchise...just sayin.

Become a Franchisee - James' Home Services

Experience the freedom of owning your own business with James' Home Services. Join the team and become a franchisee today.

jameshomeservices.com.au

 

[JamesW]

The people who buy the franchise struggle valiantly to try to make a profit and it rarely happens.

They take the loss the first few years under the idea that you have to build the business.

They work 80 hours a week with no time off and losing money the entire time.

When they eventually give up completely exhausted, they sell the business to the next sucker with a big bank account who is tired of working their well paying corporate job.

They have to act like it’s so wonderful being the owner of the business so that they can convince the buyer that it’s a great investment.

They sell and the cycle begins all over again with the new owners.

The franchisor just sits back and collects their 10% of the revenue and provides very little actual help for the money.

The businesses can’t really afford to pay very well or provide any benefits like health insurance so they typically get mostly unqualified people.

The main qualification is if you fit whatever cheap polyester uniforms they happen to have.

Join Captain Pool Pro™ and get this stylish polyester jumpsuit and $15.00 per hour.

You will be certified by our Advanced Top-Secret Training Process that lasts a whole 3 hours.

You will get a bottle of top quality test strips and a 12 page handbook that will cover every possible situation you might encounter.

 

[Jaffles]

The last two post James sadly sums up for me, how typically pathetic people have become. Its desperate sad kind of stuff really.

I have just had a long discussion walking the dog with my 13yo son over shoes, price, marketing, customer perception, and use.

I'm pretty sure Lebron James or Koby Bryant could do magic in a set of flip flops, however the dreams and reality of people are lost in marketing, profits, and company bonuses. Still its cool for many who like to be seen to pay way to much for a set of brightly coloured endorsed shoes. Few will tell you or ever admit they got ripped, let alone stop to think what the company is paying per item out off China.

Still in amongst it my son off his own bat bought a set of major shoes over a MAJOR brand. Saved himself some money and he is happy with the shoes. I asked him why and he said I did a little homework. Perhaps my comments that I often feel are negative may have some input after all.

I guess you may not get all the market share that a franchise may bring opposed to home grown small business, but maybe you might. You only need enough to be happy and strike a realistic balance I feel, which I acknowledge is different for all. I for one can't do spin for the sake of money. I need too feel like I am helping and solve the problem or supply the service to the best of my ability. Watch my staff grow along with me, and just look after my small part of the world.

 

[JamesW]

Note: If you don’t see a James Franchise that you like, we can make one up in about 10 to 15 minutes.

You want to clean out dryer vents? - We got you! Dryer Vent King.

You want to unclog shower drains? - We got you! Shower Drain King.

You want to wash people’s dogs? - We got you. Spiffy Pup.

Yes, with a Spiffy Pup™ Franchise, you’ll be washing people’s dogs in no time with our patented dog washing technology.

You’ll be bringing in tens of dollars per day while your costs eat you alive.

But, don’t worry; the James Franchising Group (JFG) will spend whatever it takes* in your local market to get you a few random customers.

Minimum Net Worth: $1 Million Dollars.

Initial Investment: $300,000.00

Royalties and Franchise Fees as described in our Franchise Prospectus.

*Up to $10.00 as needed.

Just tell us what you want to do and we will whip up a franchise with our Franchise Maker 2000 software.

You will get an *exclusive* territory and no one else can provide the same service in your territory.

Note: Territories are typically about 1 square mile in area.

For example, Phoenix is about 517 square miles in area, so your exclusive area will be the square mile you select and all territories have to be purchased separately.

 

[Jaffles]

Gee James, you got this stuff covered. Maybe you need to make a franchise selling franchise set ups ha ha.

Guess the formula is a bit like a pill from the doctor. Sell and tell them something easy because thats is what they are looking for. Regardless if results can be done for most part by the individual, if you pay for it and get the right advice than its got be good. Right.