Does your cleaning franchise offer a guaranteed income?
We don’t offer a guaranteed income with our cleaning franchise – however we are proud of the fact we don’t feel we need to and believe it’s not actually the best business model for a prospective franchisee.
Of course, if you have only ever been an employee before, with the certainty of role and income that entails, it can be quite a daunting to know you could be 100% responsible for your income – which its understandable why people are increasingly looking for different, less risky ways to set out on their own.
Good to know: Franchising has been proven to offer a far higher level of financial security, with the 2016 BFA report on the franchising industry finding that 97% of franchisee-owned units reported profitability.
The truth about franchises with guaranteed incomes
Some cleaning franchises will offer potential franchisees a guaranteed income within the first year, which may seem like an attractive deal. However, what is not always so transparent is that ‘guaranteed incomes’ operate in just the same way that insurance does – somewhere along the line there will be a hidden premium to cover a franchisor’s potential losses.
There is nothing underhand about that of course – as despite a franchisor’s best efforts, sometimes a business simply might not end up profitable in the very early days – if all. The franchisee’s expectations, their drive or ability are all factors that are impossible to predict or to guarantee.
No franchise business will be prepared to lose money, so to ensure they are financially secure, they will be factoring in the cost somewhere – which is likely passed on to the ‘successful’ franchisees down the line.
Key point: If you are successful, you will likely pay more in the long run
Our alternative approach to a guaranteed income – best in class business setup, training & support
We receive hundreds of enquiries every month from people wanting to know more about starting a Bright & Beautiful franchise. For many of them, the fact that we are able to support our franchisees with payments coming in as soon as they start trading is incredibly attractive and reassuring.
Supporting franchisees with our award-winning set up, training and support procedures means that they have enough business coming through the door to bring in a certain level of cashflow each month.
That includes working with our franchisees to ensure that they are able to target a select and specific group of clients in their area, helping them with everything from marketing to client retention and invoicing.
As a result, we have a 100% repeat business rate.
Professional contracts & regular payments helps keep income stable
All of our clients have ongoing contracts and pay by direct debit. This means that our franchisees have a stable level of income and a positive level of cash flow from day one. We then work with each franchisee to develop their goals and income targets, based on the hours they want to work and how much they want to grow their territory. This ensures that their client base continues to grow, with the financial benefits and security that brings with it.
All our franchisees have financial commitments, so they need to know that their new business will be able to meet them from the first month and every month thereafter -that’s why we also work hard at Head Office to deliver local and national marketing materials and initiatives, social media and PR, to support their new business and client retention programmes.
All this means that our franchisees can really focus their time and energy on getting under the skin of their new business – managing their teams, understanding what their clients want and embracing our training and development processes, rather than just worrying about how the money is going to come in.