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Franchises The concept of a franchise is to have another person or organization with experience help you to establish a business that is largely your own, this should increase profits and reduce risk. Club members and others seem to feel that it would be far better to have an arrangement where the provider of expert services was rewarded on success rather than in up front fees. Most of the franchise arrangements we have set up reflect this.
Our requirements from a franchise In coming up with a set of club based franchises we had a number of principles we felt had to be met, these included:-
We feel we have managed to produce a range of franchises that meet this criteria. The buttons below go to specific pages on each of the franchise schemes we have devised, however to avoid the need for duplication you should first read the explanation of the standard franchise, as the others are variations from this. Standard franchise - you own 75%, expertise is only rewarded from profits, no capital is withdrawn so the fund grows at the fastest rate. Bond franchise - designed really for very large investments. In this case the ownership is 50% to you and 50% to the experts who help you, but you get all your capital returned either according to an agreed programme or later before profits are split. Income generating franchise, while the two above from the beginning are focusing on maximum growth, the income generating franchise is not. Instead it is using a sum of money so as to get the maximum income generation from it, or a small growth to maintain its real value and income generation. This franchise does not involve you in sharing the equity of the company. Tailor made franchise - probably more for the specialist, this is where the actual terms are negotiated between you and the consultants. Specialist franchises - moving away from buy to let and self build towards member services and other more specialist opportunities. Deciding which one is for you Read through the explanations to understand the differences and if it is not clear then ask, or attend the setting up meeting and sort it out at that point. In many cases you may need to look at how the objectives and business plan would be set up for each type before deciding. Maximum Coverage have said that they will only take on franchises at a rate they can fully service, therefore there may be at some times a queue in order to handle all club requirements in this area. If you are interested it may be worth talking to them at as early a point as possible, to make sure that your requirements can be met, or that the time you will have to wait is acceptable to you. We all appreciate that their first priority has to be to fully service existing agreements before they can take on new ones.The club does not receive any reward for franchise arrangements as we wanted to allow members schemes that could be operated by reinvesting fees, and not having to find fees in addition to the active costs. On the quick tour - the tour has now ended, you could look at the various types of franchises, or use the many buttons on the right to explore far more. We hope the few pages of the tour have given you a load to think about and perhaps highlighted some of the areas that could be of interest to you. To start the quick tour again, click here.............. We suggest you next take a look at the membership section.
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