Within any franchise network the franchisor will need to take a cut of what the franchisees generate in terms of business. If they didn’t they wouldn’t exist. Product based franchises will often wrap this up with the cost of the products. So the franchisor effectively earns through sales of products.
In service based franchises such as a cleaning franchise the franchisor will very often take a percentage of the franchisees turnover. However, there are disadvantages to this approach. It effectively means the more successful a franchisee is the more money a franchisor will take from them – even though the cost of servicing that franchisee is likely to remain unchanged. This situation sometimes creates resentment as experienced franchisees continue to pay more and more to their franchisor even though they need less support from them.
The Diamond Home Support cleaning franchise offers an alternative approach. We fix our monthly fees to our franchisees. The cost of servicing them stays pretty much constant so why should we differentiate between them based on their income? When you go and buy your fish and chips on a Friday evening the chippy doesn’t ask you how much money is in your purse or wallet before deciding how much he is going to charge you does he?
Our fixed charge per month means that our franchisees know exactly where they stand and have a predictable overhead that will not come as a surprise to them each month. In addition to it being fixed it also happens to be what we consider to be very low and I’m not aware of many franchise businesses that offer such a low fixed monthly fee regardless of sector.
If you want to find out more about our cleaning franchise request our prospectus and see what we can do for you.
by Andrew Watton
Updated: 31 July 2014