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Buying a Residential Building Franchise

Discussion in 'General Property Chat' started by Brian84, 14th Aug, 2016.

  1. Brian84

    Brian84 Well-Known Member

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    Hi Everyone,

    I was thinking about buying a building franchise in northwest Sydney and I was just wondering if anyone has done this before or know someone who has,

    What are the pros and cons of doing this?

    Regards Brian
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Gardiner's or some other?

    Have a chat with some of the existing franchisees not the ones that their business development guy will put you in contact with.

    Check out Fair Trading website to find the operators/franchisees.
     
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  3. bob shovel

    bob shovel Well-Known Member

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    Cons. Entry price

    Interested to know more though:D
     
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  4. Brian84

    Brian84 Well-Known Member

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    Another company who I do framing for has asked if I would be interested in buying a franchise.
    I want to know if there is a big catch. Obviously there is going to be money in it for them otherwise they wouldn't offer it. They are a big company in Qld and have just started in NSW and there is only one part of Sydney left for sale.

    I was speaking to the franchise owner this morning who I do frames for and he said there is a manger that can be a bit hard to deal with sometimes, so it is making me have second thoughts about it.

    I am waiting for a call from them to tell me how much upfront and how much % they want from each job.
     
  5. Brian84

    Brian84 Well-Known Member

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    Yes I'm curious as well. I'm waiting for their call to find out more.
     
  6. RPI

    RPI Property Lawyer, Town Planner Business Member

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    from people I have dealt with previously who were franchisees
    1. pipeline of work is awesome - much larger volumes than can normally expect for many years of trading byself
    2. the volume of work can be hard on the cashflow
    3. quality may not be up to your standard - finishes are nice but frames and slabs need to be pumped out so quickly that you don't have time to do them well. If you are a proper Chippy then it may bother you greatly. My guy said he was no longer a tradesman, he was a business man and that it was hard letting go of the tradesman quality part of him.
     
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  7. Scott No Mates

    Scott No Mates Well-Known Member

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    • How much of a system are they providing?
    • Support?
    • Control over pricing?
    • Control over leads
     
  8. Brian84

    Brian84 Well-Known Member

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    Yes I agree with a lot of that. Some of the volume builders are more about quantity rather than quality. I think it probably would bother me because I have a good attention to detail and the slightest thing out of place would annoy me. Some people say now as you may have read that because we do prefab frames and trusses for project builders that we are rough carpenters, when actually I take pride in my work and build every home as if its my own. I look at it like we are building peoples dreams and they are paying big money for the build so I like to think I am doing the best job possible.

    With this builder we have to have our own sales team and provide our own sales, so its upto me to find the clients which is a bit suss as in if I'm doing that I might as well start my own brand out there.
     
  9. Brian84

    Brian84 Well-Known Member

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    - I have to find my own sales
    - They Provide ongoing support
    - They provide us with set designs and pricing. We just have to sell those to the clients.
     
  10. Joynz

    Joynz Well-Known Member

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    So what exactly are you getting for being part of the franchise and what is the franchise providing?
     
  11. Brian84

    Brian84 Well-Known Member

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    - All their Costing and estimating is done
    - They provide ongoing support
    - They Have a good name and reputation in Qld
    I don't know what else at the moment until I find out more from them.
    At the moment I am probably leaning more towards not doing it and starting my own brand.
     
  12. bob shovel

    bob shovel Well-Known Member

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    Could you keep doing what you're doing then grow into your own one stop shop?

    You can talk to contacts etc and get some ideas and new contacts then go from there.

    Those jims franchises cost a bomb but is something that you get going straight away but in a few years your on the same cash. Spend a few years and grow yourself and contacts i think
     
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  13. Biz

    Biz Well-Known Member

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    Brian is a dodgy bugger so this sounds like it could suit him well.

    Project homes - Eden brae

    ;)
     
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  14. Brian84

    Brian84 Well-Known Member

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    That's what I was thinking. Possibly have my boys framing to keep an income coming in while I setup my new business and get a good flow of clients. that way I can still be on the tools a couple of days a week.
     
  15. Brian84

    Brian84 Well-Known Member

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    I Already have the contacts in regards to trades so it is all good in that department.
     
  16. Brian84

    Brian84 Well-Known Member

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    One of the dodgiest around so I have heard
     
  17. bob shovel

    bob shovel Well-Known Member

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    Yeah diy it!but build up design and estimating contacts etc
     
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  18. Brian84

    Brian84 Well-Known Member

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    Yea I think that will be the most important part. Getting a design that will sell good.
     
  19. bob shovel

    bob shovel Well-Known Member

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    Keep looking into the franchises and just take note of what they're doing and copy gf good stuff! :D

    Where are you doing your builders licence? Do you need the two years experience? Or not required cause you have tafe experience and ticket?
     
  20. Brian84

    Brian84 Well-Known Member

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    I'm doing it through capital training institute and I don't have to do the 2 years with a builder because I have done cert iii in carpentry. that was one of the prerequisites to get into the course. the course is in Liverpool.
     
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