New Company Hoping to franchise it.

[dtat]

Okay as mentioned in my introduction, i have an idea for a business, which would very quickly spread across the uk (i hope), however being full time at uni, and having my affiliate business to promote (see site in link), i would probably want to franchise areas of the uk.

What are the initial logistics of doing this? legal implications, cost, and how would you decide on price to charge? and the qualification criteria for people to be able to run a franchise?

The point of a franchise is that the company takes a monthly %, and a nice chunk at the start, in exchange they market the company, and provide help to the franchisee, is this right?

So in that case i guess its a case of cost+ whatever % or price profit you want to make?

Does anyone on here take part in franchising?

Help please.

[David Haycock]

Originally Posted by dtat

Okay as mentioned in my introduction, i have an idea for a business, which would very quickly spread across the uk (i hope), however being full time at uni, and having my affiliate business to promote (see site in link), i would probably want to franchise areas of the uk.

What are the initial logistics of doing this? legal implications, cost, and how would you decide on price to charge? and the qualification criteria for people to be able to run a franchise?

The point of a franchise is that the company takes a monthly %, and a nice chunk at the start, in exchange they market the company, and provide help to the franchisee, is this right?

So in that case i guess its a case of cost+ whatever % or price profit you want to make?

Does anyone on here take part in franchising?

Help please.

Before selling a franchise , you have an existing established business which is worth selling. Take a look at www.Subway.co.uk they have info on franchises.

You are right with the commercials, it is usually a fee, of which is re-invested in start up with fixtures & fittings (obviosuly not in your case as much) + an agreement on % of profit + you buy raw materials from them - all sorts of agreements. You would probably need several outlets making a reasonable profit before considering franchise, as the risk is as high as starting a new business - which franchising is supposed to eliminate!

[Scottyg1987]

What kind of franchise is it that you are hoping to set-up? Hopefully it is not another 'local directory'.

[dtat]

whats a local directory? some kinda internet thingy?

No and to be honest some dream stealers have put me off the idea, so i am doing some more research into it first.

[Scottyg1987]

A local directory example is thebestof.co.uk

Yes, do loads of research before you start something like franchise company!

How are you getting on with your Lotto Mad website anyway?

[dtat]

the lottomad webiste is going very well, best £5 i ever spent.

I originally joined just to play the UK and Euro lottery for free everyweek, in a very short period of time I had found 5 people,and was playing for free, now i am helping others play for free, and also helping them build an online business.

Dont you just love residual income. You should give it a bash, pm me if ya fancy it.

thebestof.co.uk is that a franchise? so someone has bought the portsmouth section? is this your site?

I did have a similar idea but not to franchise on this. The franchise idea was something else,which I think has potential but I need to do more research.

[Scottyg1987]

thebestof website is like you said - people buy towns - such as Portsmouth and sell advertising space to local companies.

I did look into this but it does cost a lot to get into - between £15,000-30,000 which is a lot for that kind of franchise and you have to work very hard to get a good return on that amount.

I contacted the rep for Sittingbourne and he said that in his first five months (to date) he has sold 100 advertisements - the target on their website is 150 adverts in the first five months - so is he going to being losing money?

[dtat]

15k-30k for a town.

Please tell me your joking?

[Scottyg1987]

No Joke! The actual price bands are below:
Band A+ - £27,999 + vat
Band A - £22,999 + vat
Band B - £19,999 + vat
Band C - £12,999 + vat
Band D - £8,999 + vat

Each band depends upon the population of the town. I lost total interest when I saw the investment you had to make!

[dtat]

£28k surely you could have a copy cat site developed built and hosted for a % of that ?

Wow, i wouldnt pay anything like that.