Cleaning up

One of the Time for You cleaners

Ruth and Freddie Rayner run a franchise business called Time for You.

The idea of a cleaning lady appeals to us all.

If you are expected to clean your bedroom, wouldn't you like a cleaning lady - or perhaps a cleaning man?

Ruth and Freddie found that lots of people thought the same way.

The original business they set up in Milton Keynes grew rapidly.

They soon had 300 clients and 120 cleaners.

They realised that they had a business that others could run on the same lines - just what you need for a franchise.

Running a franchise

Time for You is a simple business which makes it right for a franchise.

Ruth and Freddie's original business involved advertising for clients who wanted their houses cleaned, finding a cleaner to match and keeping an eye on quality.

They then had to manage all the paper work involved.

Each person who takes a franchise receives

training in running the business

strategies for finding customers

strategies for finding clients

backup from Ruth and Freddie

In return they buy the franchise.

This covers the services and the use of the name.

Many people buy franchises in famous name businesses because the name gives them instant recognition.

Ruth and Freddie can run a much bigger business as franchises than they could if they'd kept direct control over everything themselves.

They also earn a steady income from selling the franchise.

The price has to be set carefully.

It must reward them for their work and risk but not be too high to attract potential franchisees.

It's all a question of demand and supply!

Just think...

What sort of paperwork would Ruth and Freddie have to do?

What sort of problems might crop up if they tried to run a national cleaning business themselves?

What sort of factors would determine the price set for the franchise.

Attracting franchisees

For the business to succeed, Ruth and Freddie need to attract people to run a local Time for You.

This spreads the service across the country.

There are currently 55 people, often couples, running the franchises.

They fill in a form which asks for a range if information about themselves.

The form is an introduction and provides Ruth and Freddie with some background to people who are considering start up a Time for you franchise.

Just think...

Have a look at the form and explain why Ruth and Freddie want this information.

What else would they want to know about people before they agreed to take them on as franchisees?

How would you set about finding out?

What sort of characteristics would you be looking for?

What is a franchisee looking for?

Many people think it's a good idea to run a business but haven't quite got the courage to set up on their own.

A franchise is a good solution as it provides access to a business idea that is already working and the backup and experience of people who have already made it work.

People are also looking for a reasonable income from their work so they will want to see the likely return on the business.

Ruth and Freddie suggests that a business with 300 houses to clean might have a gross profit of £100,000.

Just think...

What sort of costs will a franchisee have to pay?

Where does their revenue come from?

What costs should be deducted from gross profits to find out what net profit will be?

Developing the business

Ruth and Freddie are keen for their business to grow.

They have set up a commercial business which offers cleaning services to offices and shops.

A successful Time for You franchisee will be offered a commercial franchise free after two years.

Just think...

Ruth and Freddie could sell the franchises in the commercial operation.

Why do you think they are offering them to people who have been running Time for you for two years?