NO NO Franchise Dont Do it- MUST READ

[janpro05]

This is in response to the "Say no to franchise" thread. Could not post a reply so started a new one.

Anyway, I own a commercial cleaning franchise. Probably the worst decision. Too restrictive, too costly and too easy to loose accounts. I was thinking about getting out of it by paying off my franchise fee and turning the keys over to the master franchisee. It should be easy since the account contracts are not in the unit franchisees' business name but in the franchisor's name, I am not liable for anything.

Done alot of research and have found that a commercial cleaning franchise is borderline contract employment. Each month I pay a 20% fee. A 10% royalty, 5% Administrative fee and a 5.75% insurance fee. Actually the franchise is charging you to bill their own clients (5% administrative fee). That is a bunch of crap.

So once I have the money to bail, I am out. Maybe I will start my own or move to something else.

[eaglegene]

Sept 21, 2008 13:51:40 GMT -5 janpro05 said:

This is in response to the "Say no to franchise" thread. Could not post a reply so started a new one.

Anyway, I own a commercial cleaning franchise. Probably the worst decision. Too restrictive, too costly and too easy to loose accounts. I was thinking about getting out of it by paying off my franchise fee and turning the keys over to the master franchisee. It should be easy since the account contracts are not in the unit franchisees' business name but in the franchisor's name, I am not liable for anything.

Done alot of research and have found that a commercial cleaning franchise is borderline contract employment. Each month I pay a 20% fee. A 10% royalty, 5% Administrative fee and a 5.75% insurance fee. Actually the franchise is charging you to bill their own clients (5% administrative fee). That is a bunch of crap.

So once I have the money to bail, I am out. Maybe I will start my own or move to something else.

Franchises bid extremely low to get their franchisees accounts. Your right, at this point your just a contract employee. Get out of it & start your own cleaning biz.

Back in 1995 i started by buying 3 account from Jan Pro. 2 months into it they disappeared & i was on my own. Luckily, i was able to keep all my accounts & had them sign contracts with my personal biz. I went from making $2300.00 per month to $12,000.00 per month within 8 months. I had 5 employees at the time. Made great money, unfortunately i was having some family issues at the time & just after 5 years as a biz owner i had to give it up.

Now, 8 years outta biz i am getting it back together. Will start off part time and WONT buy into a franchise again. I know the ins & outs now so i can do it on my own...