There are usually restrictions on where you operate, the products you sell and the suppliers you use.
When you buy into a franchise you aren’t just buying their success, systems, policies and processes you are buying certain restrictions.
From the moment you sign the franchise agreement the Franchisor puts into place certain restrictions such as the location.
Most franchises will limit where you are able to trade, they do this for a number of reasons. Most of the tie it is to protect you, because you’re not the only one who has your location limited, all other franchisees also have a limited location but what this means is that aren’t allowed to advertise or market in your location and you can’t do the same to them meaning that you are secure that when you buy a franchise the location is uniquely yours.
The franchisee also restricts the products that you can use, one of the biggest reasons for this is down to health and safety. When the franchisor sells you the products you will be using this means that they know exactly how these products work so that they only have to use one set of method statements because if everyone is using their own thing then every client in the franchise would be getting a different level of service as the method statements wouldn’t work.
For example, with Sparkle Cleaning we supply every franchisee with a set of method statements of how to clean everything from glass to escalators and we know, using our products how long these should last, how much to use on each job and the cost associated with these. If everyone used their own products costing different amounts than the budgets would be different, margins would be different and the franchisees wouldn’t make the same amount of profit as predicted.
The fees that are associated with a franchise usually fall into two categories, management fees and marketing fees. These are never negotiable
Creativity changes from franchise to franchise, at every Sparkle Cleaning quarterly meeting we ask for feedback from the franchisees, what sort of marketing would they like to see and any changes that they would like, but, there are many franchises out there that limit your creativity and won’t let people move away from the script. This is one of the reasons that it’s always worth looking at a newer franchise than one that has been around for many years.
Some franchises limit the amount of information you can have, they scale it on the price you decide to pay, meaning that if you are just starting your franchise and have a limited start-up capital you may not get all the information to help your business scale as quickly as you hoped it would or have been promised.