Thank you for your ? and replies. What has been said is sage advice but would like to post my 2 experiences with 2 franchises--1 local-1National Well Known.
I have had excellent service, gotten some very profitable accounts from the local Franchisor, in the process of selling an account to them. To be fair some of the accounts I bought from the Local Franchisor have been great and some have not been as great, some have gone/moved/away.Some of the accounts I purchased were close to accounts I had in service area.Why I bought that account.
The National Franchise, started with 2 accounts--1 moved & by the way they were not billing for a 2nd small office on the same location--got that fixed. The other accounts were profitable after I got a large pay increase. The promised Medical Facility Training never happened. 1 of the owners admitted that he felt $20 per hour was good enough. I gave back my last account so I am done with them. Also I felt the training was really lacking and there wasn't really anything new.
I see the franchise as an investment, I look at the cost of an account and the pay back period. If the account is $500 to buy and pays 100 a month then the pay back period is 5 months, after 5 months all profit minus franchise expenses or Cash in and Cash Out or A Cash on Cash Investment.
The downside is selling back the account to the franchisor, in my case they didn't work very hard to get a buyer for the account after several months I called it quits.
I close with this Is the Franchisor in business just to sell franchises? or are they really interested in helping you to grow your business and not just theirs?
Years ago, there was a Big Janitorial Scam going around, a company or companies were selling janitorial contracts/franchises BUT NOT DElivering on the contracts, some people lost lots of money.
Brad BD Janitorial