Disadvantages of Franchising
Average cost of a franchise using the Host carpet cleaning system is £15,000 + vat
Average cost of purchasing a Host carpet cleaning system direct from us is £3400 + vat
Here are 10 good reasons why you should avoid being involved with a franchise company.
And 10 good reasons why you should buy direct from us!
Ten Good Reasons Not To Franchise
1. Questionable profitability. Most franchisers do not provide much information to potential franchisees regarding earning possibilities, making it difficult to assess how lucrative investment in the company could be. Even the franchisers who do supply this information can only offer average sales and often these figures are exaggerated on what they believe you can expect to earn. If it sounds too good to be true, it probably isn't which is not very helpful when you are trying to determine if your individual franchise will be successful after investing in excess of £15,000
2. High start-up costs. Before opening your franchise, you may be required to pay a non-refundable initial franchise fee, which can cost several thousand pounds. In addition to the initial fee, there are also usually high start-up costs associated with furnishing your franchise with the necessary inventory and equipment. It can easily take several years to recoup the expenses connected with getting your franchise off the ground. At Timberstone we offer you a totally independent business opportunity, no overpriced start-up costs and no licence fees! With a number of options available we can put together a system suitable for most budgets and levels of investment.
3. Trading restrictions and territories. Imagine the following scenario: You have just spent thousands of pounds opening your own carpet cleaning franchise when another franchisee from the same franchise company opens only a few miles down the road which is just outside your territory and has essentially reduced your customer base to a minimum. This type of thing happens to franchisees all the time. Buying direct allows you to operate wherever you want! No boundaries, No territories.
4. Limited independence. When you buy a franchise, you are not just buying the right to use the franchiser’s name. You are buying its business plan as well. As a result, most franchisers impose price, appearance and design standards on franchisees, limiting the ways you can operate the franchise. While these regulations can help promote uniformity, they can also stifle your own creativity and ability to cater to local tastes or needs. Timberstone offers you a totally independent business opportunity – giving you the freedom to make your own decisions and run the business more effectively.
5. Royalty payments. Franchisees are required to make continuing royalty payments to the franchiser based on a percentage of his or her monthly sales, continually eating into the franchisee’s hard earned net profit. Purchase your host system direct from us and all the profit is yours - no royalties, no commission fees, what you earn is yours to keep!
6. Inflated pricing on supplies. In many cases, the franchiser can designate the franchise’s supplier of goods and services. Franchisers argue that this is done to maintain quality control, often selling at inflated rates well above the current market price, and not allowing you the opportunity to shop around - subsequently limiting competition and you are forced to pay higher prices on supplies. Timberstone offers the best prices in the UK, with trade discount rates available across the Host product range. No restrictions on minimum orders and massive discounts available on bulk purchases.
7. Restrictions on post-term competition. Let’s say that you decide to purchase a carpet cleaning franchise but after a couple of years you determine that you could run a higher quality and more profitable company of your own. Unfortunately, non-competition clauses are built into almost every franchise agreement, franchisees are not allowed to become independent business owners in a similar business after termination of the franchise agreement. By purchasing a franchise, you may be unwittingly limiting your business opportunities for years after the expiration of your contract. Another good reason why you should buy direct from Timberstone!
8. Advertising and marketing fees. Many franchisees are obligated to make regular contributions to the franchiser’s advertising fund. Sales, marketing and good PR is the key to any successful business and can be very costly if the advertising budget is not used wisely. Being independent gives you the freedom to invest in advertising when and how often your budget dictates. You are also free to advertise in areas you feel will be more lucrative as opposed to being dictated to by others.
9. Training and operational support. During the initial start-up period of the business most franchisors will offer you one to one training and support. However, after a period of time you may wish expand your franchise and take on additional staff. The franchisor will often insist that staff training is carried out by the franchise company and argue that this is done to maintain quality control and often charging highly inflated rates – ranging from £250 to £350 per day per person. During the initial start-up period of the business most franchisors will offer you one to one training and support. However, after a period of time you may wish expand your franchise and take on additional staff. The franchisor will often insist that staff training is carried out by the franchise company and argue that this is done to maintain quality control and often charging highly inflated rates – ranging from £250 to £350 per day per person.
10. Unfair termination. Even the slightest impropriety on your part, such as being late on a royalty payment or violating the franchise’s standard operating procedure, can be cause for the franchiser to terminate your agreement. The possibility of losing your entire investment for being late on a royalty payment is a scary thought. 10 good reasons why you should buy direct - no contracts, no license agreements, and no royalty fees!
Franchise organisation national recognised brand, true or false! Some franchise companies will tell you that one of the biggest advantages of their franchise is they have built a regional or nationally recognised brand that has value in the eyes of customers you are trying to attract, which naturally comes at a price! Often is the case, the franchise brand is relatively unknown in many parts of the UK.
Host trademark, nationally recognised brand “worldwide”
When you invest in Host cleaning system from Timberstone you will be given the opportunity to use the Host logo on vehicles, staff uniforms, business cards and websites, you will granted permission free of charge to use the high profile image of the Host brand that Host has built its reputation on over many years worldwide!