From 2007-2013 I was part of the worlds first property investment franchise which is the fastest growing ‘premium’ franchise in the UK. In fact I was the first franchise partner (franchisee) to join the organisation and grew as an investor alongside the franchise itself. That was an amazing opportunity to work alongside and be part of a franchise network and being able to see first hand how the franchise model works and also be able to play a number of roles in the growth of the franchise itself.
In the franchising world most property related franchises are in the service sector such as cleaning, being a letting or estate agent, doing gas and electrical testing, window cleaning, maintenance, garage conversions, inventories, kitchen refurbishments etc, etc, etc. All of these are focused on providing services to people that own properties but that you can earn an income from. There are many successful franchisees operating in these sectors and many well known franchise brands offering those type of opportunities.
The franchise that I was involved in offered me the opportunity to actually build my own property portfolio and derive some good cash flow from that also. It really did give me the best of both worlds. I have been able to build a sizeable portfolio in the Essex area and operate as a business to manage my own properties which generates the rental income which pays the mortgages, business costs and gives me a good income personally also.
It is quite an unconventional franchise model and one which some people struggle to get their head around. It is also a high entry cost franchise which also puts many people off. There is nothing wrong with a high cost but what you must feel happy with is the return of value that you will get from spending a large amount of money on joining a franchise. As the fastest growing premium franchise there are obviously many examples of people that have been able to make the numbers work and who have made a success of the model.
I initially wasn’t even considering looking for a franchise but after having undertaken some one to one mentoring about 18 months earlier it ended up being a natural progression for me to then become part of a franchise model. The guy that delivered my one to one mentoring set up the franchise to help people build a property business based on using their franchise model to build a property portfolio and rent it in the most profitable way possible. I have learnt many things along the way being part of the franchise and actually a lot of it was nothing to do with property at all but was more about how to run a property business. Areas like tax structures, employing staff, marketing, sales, business set up, working with investors, structuring deals, negotiation, business planning, personal development etc, etc. Having access to this learning was a key part of the growth of being a property investor and helped me become an expert in my area.
One of the huge benefits of being part of a larger network, whether that is in a franchise or not is that you have immediate access to other investors/business people in exactly the same situation as yourself and also more importantly those that are further down the line than you or have more experience than you in certain areas and from whom you can learn. The alternative to this is going alone and having to develop your own networks and contacts and find out for yourself what works and what doesn’t. In the world of property investing that can be extremely time consuming and expensive if you make some major mistakes.
From my own experience I can say that signing up for a franchise in any sector, with any business model is a big, big commitment. The value you derive from a franchise typically drops over a period of time and that actually shows the success of any model. If you are then able, confident, have the skills, systems and processes to run that business with less support then you will have made a success of it. You get massive value, support and learning in the early years and then once you become fully competent operating your franchise business you need less help and support and there is less to learn. That is unless the franchise itself develops and offers you new ways to build your business and learn new skills and take advantage of new opportunities.
If you are looking at leaving a job you have currently and thinking of starting your own business it is worth considering the franchise route. If you have an interest in property there are many options available to you. Any franchise will require you to pay them money up front to join the network and then to pay commissions or payments along the way also. That is the financial model for any franchise and you need to be comfortable with that. You are buying into systems, support, on going training and development, joining a network of other business owners and increasing your chances of having a successful business. The statistics show that you are far more likely to succeed in business if you follow a franchise system compared to starting up on your own and finding your own way of doing things.
To help you find out more about the best franchises in their sector you should check out the British Franchise Association website.
If you have any questions about the franchise I was involved in then please feel free to contact me at the bottom of this page.
I look forward to hearing from you