Franchise security

7 Essential Questions To Ask A Franchisor

For would-be entrepreneurs thinking of investing in a franchised brand, the range of businesses on offer may seem overwhelming.  First of all, you need to decide on the type of business that’s right for you, whether it’s a retail franchise, ‘man and van’ business, professional services, estate agency and so on.

Secondly, once you’ve decided which sector you want to operate in, you are then faced with choosing the right brand.  To help you, we’ve compiled a list of essential questions to ask your potential franchisor with a brief explanation as to why you need to know.

What is the owner’s background? Do they have a successful track record in their business sector or in franchising?

If the owner doesn’t have a successful track record either in their business sector or franchising or has not successfully operated a pilot business, they will not be able to help you in running your own business.

Are you members of the British Franchise Association?

The British Franchise Association is a voluntary association which vets its members to ensure their compliance within stringent ethical standards. We would strongly advise all potential franchisees to proceed with caution if considering a non-BFA member. Redstones is proud to be a member of the BFA.

Have you worked with BFA accredited franchise consultants and lawyers in drawing up your franchise agreement?

Franchising is a specialised business and most ethical franchisors work with accredited lawyers and consultants when setting up their franchise.

How will I be trained and what ongoing training is available?

Comprehensive training in all aspects of running the franchised business, together with ongoing support, is essential for long-term business success.

How long is the franchise agreement for?

The franchise agreement is a legally binding agreement. It is important to know the length of time you are committing to and whether or not you can sell the business or renew the agreement when it comes to an end. Franchise agreements typically run for five years depending on the sector.

What additional capital or working capital will be required to set up the franchise?

You must be clear on exactly what the initial franchise fee covers and how much additional working capital will be required to get your business up and running.

What are your ongoing fees?

Franchisors typically charge royalties or ongoing fees on a franchisee’s turnover which is reinvested back into the marketing of the brand and support of the franchisee. Understanding the exact level of ongoing fees will enable you to produce a viable business plan.

For additional advice we recommend the BFA website.  

Redstones Lettings

Letting Made Easy With Redstones

Letting Your Property Is Easy With Redstones Total Platinum Care

The lettings market can be a precarious one for landlords.

At Redstones, we know from listening to our clients that their overriding cause for concern is finding a tenant who pays on time, every month.  We also know from experience that even with the most comprehensive reference checks and seemingly perfect tenants, life occasionally gets in the way.

What happens if your tenant is made redundant or falls ill?  In the worst case scenario, a tenant may cease all communication and refuse to pay their rent.  Before you know it, you are faced with mounting costs for bailiffs, legal fees and the added stress of evicting your tenant.

What’s the solution?

Traditional letting agreements simply require the agent to provide a suitable tenant, processing rent payments as and when they are received. If the tenant fails to pay, the landlord receives nothing.

When your mortgage repayments are dependent upon paying tenants or you simply can’t afford to be left with an empty property, what can you do?

At Redstones, we have the answer.

Our unique Platinum Total Care option is a must for property owners seeking a solution to the potential problem of rent arrears and onerous legal costs.

What is Redstones’ Platinum Total Care?

Our innovative Platinum Total Care service includes the following:-

  • Redstones assume full responsibility of ensuring the rent is paid on time, every month.
  • Our arrangement means that the tenant pays the rent directly to us.  We in turn pay our clients on a fixed date each month.
  • If the tenant falls into arrears or fails to pay, we will continue to cover the rental payments to our clients up to a maximum of five months.
  • Redstones covers any legal costs which may be incurred in obtaining vacant possession of the property. This gives our clients the time to regain possession of their property without incurring additional costs and losing more money in the process.

Our client Kate Willis has this to say about our Platinum Total Care service:-

‘I would highly recommend the Platinum Total Care Service. It gives me peace of mind to know my rent will be paid on time, every month and takes the stress out of renting!”

Contact us today to find out more about how our Platinum Total Care service can take the stress out of letting your property.

We look forward to hearing from you.

Blue Sky

Franchise vs Start-up

Franchising : Your Business Advantage

Setting up in business alone can be a daunting prospect. Where do you begin, how will you establish your brand, what are you chances of success? What happens when you encounter a glitch in your business plan?

Investing in a franchise business provides the answer to all of these issues. For would-be entrepreneurs, franchising is becoming an increasingly popular way of setting up their own business under the banner of a tried and trusted brand name.

Franchise success in the UK

Natwest Bank’s 2013 Survey in association with the British Franchise Association reveals that the UK franchise industry is growing, contributing around £13.7bn to the UK economy in the past year.  What’s more, 90% of franchisors are confident that growth will continue during 2014 – and Redstones is one of them.

The advantages of franchising

For a budding entrepreneur, setting up in business as a franchisee offers the following distinct advantages over a ‘stand-alone’ start-up business:-

Increased chance of success : While statistics vary, guidelines suggest that only 7% of stand-alone businesses are still trading after three years, compared to 90% of franchised businesses.  Natwest’s survey supports these figures, with 92 per cent of franchisees reporting profitability and one in four running multiple outlets.  Among new franchisees (less than two years in business) 80% are already profitable.

A competitive edge : Being part of a recognised brand gives a franchisee more visibility. Potential customers know what to expect and will be more confident in working with them. In the competitive lettings market this is especially important.

A proven business system : A franchisor’s business model is tried, tested and proven, removing the often steep learning curve that most stand-alone businesses face.

As the Chairman of the BFA, Brian Smart states ‘The fact remains that franchising provides a business owner with the means and methodology to set up and run their own business with an increased rate of success when compared with traditional stand-alone methods’.

With Redstones, our franchisees are comprehensively trained in all aspects of running an estate agency business, including marketing, accounting and sales.

We also provide ongoing ‘hands-on’ support to ensure our franchisees become profitable in the shortest possible time. As members of the British Franchise Association, we are committed to excellence in our franchise business.

Franchising is open to anyone from all walks of life, provided they have sufficient capital and the right attitude.

Contact us today to discuss how you can become a franchisee of Redstones and owner of your own successful lettings business.