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Franchise Why?

Discussion in 'Franchising' started by newbie35, Nov 3, 2007.

  1. newbie35

    newbie35 LawnSite Member
    Messages: 67

    I know many people have a franchise for holiday lighting and am curious as to why you think it is beneficial? I took over a business that was franchised and have it this year but am not sure it's really worth much. So what's your reason? Pricing? Support? etc. PS We have local wholesale supplier so I don't need a franchise for that.
  2. E.J.

    E.J. LawnSite Member
    Messages: 24

    I looked heavily into the Christmas Decor franchise for the simple reason I didn't want to "reinvent the wheel"- however, I feel like the money they wanted for their territories and franchise fees were outrageous. My time is worth a bit to me, but not that much. haha

    Would also be curious to find out what others have to say.
  3. (wi) Roots

    (wi) Roots LawnSite Member
    from 9
    Messages: 152

    Usually, because lack of knowledge. Where to begin. What to do, when. How much. How to install. Power. product how much do I order. Where to find customer. etc...........!
  4. newbie35

    newbie35 LawnSite Member
    Messages: 67

    ok but once you learn those things why keep paying the fees for the right to be associated with them. I do all my business under my business name and use the generic website only to attract people to call my number. Is there a reason to continue after you learn everything your first year.
  5. (wi) Roots

    (wi) Roots LawnSite Member
    from 9
    Messages: 152

    You can be sued!
    Depending on the contract. Your given a contract to sign before your given any info. Your under law to full fill the contract for the knowledge gained and all fee associated with it. Depending on the contract they can last many years. Then, once your out of the contract your not to compete with them for a number of years. Which by then, if your still into it, have no obligations associated with them and can do as you please! By then, though your probably burn out on it entirely or find other way to make means.
  6. E.J.

    E.J. LawnSite Member
    Messages: 24

    Franchise= Golden Handcuffs
  7. newbie35

    newbie35 LawnSite Member
    Messages: 67

    I have never seen a contract for the franchise. Besides they will sell "trade secrets" information to anyone that gives them the money. I think the books are $800 or so. So you can learn the "trade secrets" without the franchise. I am not trying to pound anyone that likes the franchise way just trying to figure out what is so great about it. I understand it for things like taco bell, burger king, etc. but with something like this or lawn care you have a product that cannot be copied from market to market which is key to the success of those listed above. (I don't care what they say. There are too many operators out there and not enough control by the franchise to ever make it work). With those names listed above you also get advertising not just support which creates brand awareness. If you have a good reason to use a franchise lets hear it. (I am trying to justify it to my accountant for just this year. Somehow he doesn't see any value in it but I have to do it this year for the customers I took on).
  8. turf hokie

    turf hokie LawnSite Silver Member
    Messages: 2,751

    I think there are good sides and bad sides to a franchise just like anything else. I agree that there is a point where the money required to purchase a franchise (or anything for that matter) reaches a point that you won't get back what you put in.
    That being said, I have two businesses currently. Christmas Decor and a lawn service that I started on my own. I went with the Christmas franchise for a number of reasons. All of which still hold true today. Not everything is perfect but I am happy with my decision.
    If you want some specifics, PM and I will help however I can.
  9. David Gretzmier

    David Gretzmier LawnSite Gold Member
    Messages: 3,645

    when meeting with potential customers for the first 3 or so years, it is incredibly valuable to be connected to an organization that is larger than yourself. It gives you credibility to do the job, and you will close more jobs, probably twice the ratio. You will also command and justify a higher price than an independant. the training available at the big three ( Christmas Decor, Brite Ideas, and Holiday Bright Lights) will get you started on the right pricing and installation methods. Having the best product available to you, the color professional literature to show prospects, employee training videos and manuals, graphics for trucks, logos and advertising for newspapers and magazines already done and available to you. Phone support. better pricing on product ( all three beat the wholesale prices on the net by 10% or more ) and having product available when all others are out.

    You can go it alone and figure it out. I chose not to.
  10. Christmas Creations

    Christmas Creations LawnSite Member
    Messages: 19

    I've been doing HBL for the past three years and I feel it has given me an advantage going into a new customer, I can bring unique products to the table where the other guy can't. If the money is there, they will combine with special lights and C7/C9's.

    With HBL, my intial cost was buying product for inventory. That qualified me for member's pricing. Haven't looked back yet.

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