Franchise

Apollo_Auto · 03-15-09, 04:31

I received an email recently from a guy wanting to buy franchise rights for my company. So far, I've been doing this alone because there's really not been a need for an employee, but also because it's one of those "if you want it done right..." things, as well. Now the guy doesn't have much experience in detailing but he's willing to train. He'd also be operating in a city about 200km from me. Here's some different options I've been mulling over:

1. Sell him franchise rights, he's independent, etc. (I haven't figured out a price yet, but that's not my main concern) but still operating under my name, therefore it's a risk for me if he mucks something up.
2. Make a clone business with a different name, but it will still be affiliated with my company as a "sister" company.
3. Tell the guy, "Thanks, but no thanks. My name is too important.

What do you guys think?

- Jesse

Setec Astronomy · 03-15-09, 04:38

My gut says #3. You work on all those high end cars...that work would evaporate (I'm guessing) if he sullies your name. I can't believe the franchise license fee would be worth that much. Is there some training involved in this deal? Or he just wants the name? If he just wants the name, that's not really a "franchise". Is your end a one-time or continuing payout?

Apollo_Auto · 03-15-09, 04:50

Quote:

Originally Posted by Setec Astronomy

My gut says #3. You work on all those high end cars...that work would evaporate (I'm guessing) if he sullies your name. I can't believe the franchise license fee would be worth that much. Is there some training involved in this deal? Or he just wants the name? If he just wants the name, that's not really a "franchise". Is your end a one-time or continuing payout?

My gut's telling me #3 also... but I could free myself from risk by making a "clone" partner site/business. I guess I could consider it as a "franchise", because I would be training him and he'd get a "clone" of my mobile setup. Also he'd be getting all the marketing work that I've done, the use of the web site, business cards, logos, the hole kit and kaboole, all of which I personally created, designed, etc. I think I'd ask him for a 1-time payout+do a contract that says he has to buy all of his products from me. I think I'd probably charge him a quarterly fee for flyer design, web site maintenance, etc., also. Or maybe a monthly fee? He mentioned something about x% of his work, but there's no way I can monitor something like that, and honestly I'd rather not have to bother with it.

jdoria · 03-15-09, 04:59

I'd avoid the franchise idea all together.

Your work is so specialized, its really not something you can or would want to "bottle" and sell.

If you were a mobile wash and wax guy, I'd say do it.

Apollo_Auto · 03-15-09, 05:01

Quote:

Originally Posted by jdoria

I'd avoid the franchise idea all together.

Your work is so specialized, its really not something you can or would want to "bottle" and sell.

If you were a mobile wash and wax guy, I'd say do it.

True... and that's basically what I told the guy also. Maybe I'll just do him a site like mine, get him set up, train him, etc. and set him loose. Tough decision.

Jakerooni · 03-15-09, 06:55

Most offers like that are nothing more than scams anyways. I would definatly tell the guy no. It's one thing if you're out there looking to franchise your buisness and someone offers to help it's another when someone out of the blue just wants to come in and offer something you're not even looking for.

bufferbarry · 03-15-09, 08:03

jessie,
if it were me i would pick up my ruck and move one! me personally, if i would be approached for something like this i would be thankfull and blessed, but would probaly refuse. my reason would be, truthfully when it boils down to it are people paying for apollo auto or they paying for jessie oconner! think about that! apollo auto is a business, but the heart and soul of it is you my friend. i have a part timer who occasionally helps me with interior work. so i can focus on some of these horrible cars i get at times. people pay me for me not for my business name. but for me and what i can do! maybe what im getting at is. your gifted, you have a talent and your getting into higher end stuff now from what i can see. your a good man( with some crazy lights) lol is a few extra bucks worth the chance of ruining something that you worked so hard to do!
i would just offer to help him get set up and throw some advice out there his way! remember those who do good get back good! your career seems to be at a highlight ride the wave to success on your own!! good luck with your adventure!!

Apollo_Auto · 03-15-09, 08:18

Quote:

Originally Posted by bufferbarry

jessie,
if it were me i would pick up my ruck and move one! me personally, if i would be approached for something like this i would be thankfull and blessed, but would probaly refuse. my reason would be, truthfully when it boils down to it are people paying for apollo auto or they paying for jessie oconner! think about that! apollo auto is a business, but the heart and soul of it is you my friend. i have a part timer who occasionally helps me with interior work. so i can focus on some of these horrible cars i get at times. people pay me for me not for my business name. but for me and what i can do! maybe what im getting at is. your gifted, you have a talent and your getting into higher end stuff now from what i can see. your a good man( with some crazy lights) lol is a few extra bucks worth the chance of ruining something that you worked so hard to do!
i would just offer to help him get set up and throw some advice out there his way! remember those who do good get back good! your career seems to be at a highlight ride the wave to success on your own!! good luck with your adventure!!

So true Barry, thanks! I wrote the guy an email already and told him that I would be willing to "clone" my business but with a different name, etc. It would be similar to mine, but different as it would be an entirely different company.

bufferbarry · 03-15-09, 08:43

i already thought apollo auto was franchised iin canada!!!! lmao i know you will shoot me for saying that one!!!! lol jumping upp and down thinking! hows that fanchise feel now!!!!!!!!

Apollo_Auto · 03-15-09, 09:09

Quote:

Originally Posted by bufferbarry

i already thought apollo auto was franchised iin canada!!!! lmao i know you will shoot me for saying that one!!!! lol jumping upp and down thinking! hows that fanchise feel now!!!!!!!!

I remember little Tyler Dalton demanding that I change the name of my company as it was similar to his... maybe I should have?

Twista616 · 03-15-09, 11:32

Instead of having anything to do with your name, just tell him youll train him and help him set up the business. Charge accordingly, and its a chance to make some extra $$ without hurting your name.

Apollo_Auto · 03-15-09, 12:02

Quote:

Originally Posted by Twista616

Instead of having anything to do with your name, just tell him youll train him and help him set up the business. Charge accordingly, and its a chance to make some extra $$ without hurting your name.

Yup, I've already written him saying we can "clone" the business but with a different name. Thanks!