electricalperson
Senior Member
- Location
- massachusetts
how many people here own or work for a franchise company? they seem like good places to work for but i was wondering what its like to own a franchise
owning a franchise
- Thread starter electricalperson
- Start date
- Status
- Location
- Windsor, CO NEC: 2017
- Occupation
- Service Manager
I do not see the benefit of owning an electrical franchise.
you've never tried to sell your electrical contracting business...
Rewire
Senior Member
- Location
- Lake of the Ozarks
The advantage is you are buying a system instead of learning as you go. It is still not a gaurentee of success but does give you an advantage.With a franchise you must also meet standards set by the franchisor that eliminates some potential for failure.
The disadvantages are large up front costs for the franchise plus royalties paid to the franchisor,also you must follow their guidlines.
Franchises do fail,but they do fair better than non franchises
bradleyelectric
Senior Member
- Location
- forest hill, md
True, however there is more to owning a successful business than having advertising and a price structure.
Rewire
Senior Member
- Location
- Lake of the Ozarks
The difference is infancy verses maturity.I would much rather start with a mature company than one in its infancy.
brantmacga
Señor Member
- Location
- Georgia
- Occupation
- Former Child
The resources available to you with a good franchise could never be matched on your own. I don't have an electrical franchise, but another business. And its opened my eyes to a lot of new things I implemented within my electrical business.
I have a friend w/ a plumbing franchise and he says it does excellent.
Buying an electrical franchise is something I've considered, and probably will eventually do.
I have a friend w/ a plumbing franchise and he says it does excellent.
Buying an electrical franchise is something I've considered, and probably will eventually do.
Rewire
Senior Member
- Location
- Lake of the Ozarks
Selling Electrical franchises is something I will be doing "Mr Rewire "comming soon to a town near you.
The company I worked for years ago bought into an electrical preventive maintenance and testing franchise.
I don't recall the exact cost now but I do remember it was very pricey. Well into the six figures.
It was also a big loser. We couldn't convince customers to spend big money on cleaning gear, operating breakers and switches, tightening connections and doing infrared scans when "they hadn't had a problem in the last 30 years" without doing any of that "stuff".
We had hired a guy just for that branch of the company plus a secretary and ended up letting them go and dropping the franchise.
The franchise had a great sales pitch and was very convincing during the sale but like I said, it just didn't pan out. At all.
I don't recall the exact cost now but I do remember it was very pricey. Well into the six figures.
It was also a big loser. We couldn't convince customers to spend big money on cleaning gear, operating breakers and switches, tightening connections and doing infrared scans when "they hadn't had a problem in the last 30 years" without doing any of that "stuff".
We had hired a guy just for that branch of the company plus a secretary and ended up letting them go and dropping the franchise.
The franchise had a great sales pitch and was very convincing during the sale but like I said, it just didn't pan out. At all.
brantmacga
Señor Member
- Location
- Georgia
- Occupation
- Former Child
Same thing happens to non-franchise contractors.
Its important to know that not all franchises work alike. Some are hesitant to put a franchise in an area that they think it might fail. Others just want to sell as many as they can.
A franchise is a system. You have to fully commit. Even then they don't always work. Same with going at it on your own.
If you're considering one, go talk to people that are already in the business. The franchise we went with even gave us a list of every franchisee that went out of business, and listed their phone numbers so we could call and find out why their business failed. We were also given all the financials of the corporation for the past several years. We were never promised a certain annual sales figure, profit margin, etc. . . Only that we would be fully supported. We have a list of the nearest franchisees that we can call for advice, have regional corporate employees who come in on a scheduled basis to see how things are going, check our sales figures and make sure our pricing is correct to reach our target profit margin, etc. . etc. . I can't even begin to list all the benefits. . . . Not all franchises are alike.
One other thing I forgot to mention. . .and this is probably rare. . . but the particular franchise we are involved with buys out local competitors and shuts them down. They are serious about having their brand succeed above all others.
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ceb58
Senior Member
- Location
- Raeford, NC
I have seen one disadvantage to the franchise side. One of my regular customer told me he had been using the same guy for all his plumbing needs for years and was happy. The plumber has now bought into a franchise. His last call to the customer was to replace a float in a toilet he was there 15 min. plus parts and sent him a bill for $483.00 when he questioned the bill he was told that was the rate the franchise company had set. He told him to enjoy the money because it would be the last he would see from him.
brantmacga
Señor Member
- Location
- Georgia
- Occupation
- Former Child
That's a valid point.
In that case, I would say maybe the company should attempt to make a database of their regular customer base before transitioning to a franchise, and then slowly work them up to the new price scale.
That would be something to discuss with the franchise, as they're probably fully equipped to handle these types of situations.
the guys i've seen most successful at it are contractors who did not already have a dedicated service division, and contractors who were new at business.
i'd bet that was a bad excuse, because like brant said, he wasn't prepared....but I can assure you that price was set with the input of the plumber. It was based on the numbers he needs to achieve what he wants...
so, the question really is how to retrain his customers to the higher rate that he needs to charge to get what he wants out of life...
peter d
Senior Member
- Location
- New England
Why can't electricians get $483 to change an outlet? Ok, maybe not $483, but at least $250?
we do.......
peter d
Senior Member
- Location
- New England
Who is "we?" Your company?
nah...me and the mouse in my pocket:roll:
peter d
Senior Member
- Location
- New England
Ok, well tell the mouse I said hi. :roll:
brantmacga
Señor Member
- Location
- Georgia
- Occupation
- Former Child
i've charged $400 to change a few light bulbs without blinking.
that is the perfect question. telling the customer "that's the price the franchise set" is not the correct answer, either.
emahler said:
that is the perfect question. telling the customer "that's the price the franchise set" is not the correct answer, either.
- Status