Crunch cuts can mean business (Daily Mail franchise story)

posted on 06-Aug-2008

Crunch cuts can mean business 

by Lynda Whitney


YOU CAN cash in on the credit crunch. Research by lender GE Money shows more people are choosing to improve, not move, and businesses providing home extensions and make-overs are thriving. ‘We have seen an upturn in business as people watching the pennies are using our service to replace kitchen doors and drawers rather than replace the whole kitchen,' says Alex Waite of Dream Doors. Franchisees manage teams of technicians, so management and sales skills are more important than kitchen-fitting experience. Total investment, including the necessary showroom, is £60,000.

 

Many people are also choosing not to move but to add extra space to their existing homes.  ‘We are receiving 150 inquiries a week, compared with the usual 90,' says Phil Bateman of The Garage Conversion Company . There is work waiting for franhisees, who manage teams turning garages into extra rooms. It suits experience and may provide an extra revenue stream for existing building companies. Investment is £23,995.


Slow property sales have led to an increase in lettings, and more business for Mr Electric franchisees, ensuring property meets safety standards. The £26,000 investment includes training, and you need not be an electrician as you can recruit qualified staff. The franchise also suits existing electrical businesses seeking a bigger brand name, or qualified electricians who want to set up in business for themselves.

 

IF you enjoy being a pioneer, a newly launched franchise will get you in at the start of a business. But new franchises are riskier, so check them out extra carefully. Iain Martin, from franchise recruitment company Kyros, says: ‘Check there is a successful pilot franchise or company-owned unit on which the franchise model is based.' Check that full operations manual, watertight contracts and support are in place. Banks are likely to lend a lower percentage of start-up capital if you take on a new franchise -perhaps 50 per cent compared with the more usual 70 per cent.


Latest franchises include:

  • Electrical retailer The Satellite Shop, at £40,570.You will set up satellite dishes and home entertainment systems.
  • Shopper Anonymous can turn you into a mystery shopper, visiting solicitors, supermarkets, coffee shops and bakeries. Investment is £35,000.
  • Strip boutique is looking for franchisees who offer waxing treatment, lingerie and beauty products. Cost is £87,200.
  • Combined hair and beauty business franchise Mirage offers waxing and beauty products based on Ayurvedic herbal principles. Cost is £106,500.
  • Loaf Hair is looking for more franchisees. Cost is £60,000-£70,000.

 

 For more information on these exciting franchises, please click on the following links:


RICHARD MASON, 50, is profiting from the downturn with a Servicemaster carpet and upholstery cleaning franchise.  ‘I have seen an increase in demand in the past two  months,’ says Richard, from  Selby, North  Yorkshire.
‘This could be a result of  home and business owners deciding to get carpets and three-piece suites cleaned
rather than replacing them.’  Richard, whose franchise area covers Leeds, Dewsbury, York, Selby and Hull, also offers disaster restoration services and is still cleaning up homes after last year’s floods in Hull. ‘It helps having a variety of services to offer,’ he says. The Servicemaster franchise costs £23,125. Its sister franchise Merry Maids (domestic cleaning) costs £15,900, and furniture repair franchise Furniture Medic
costs £26,500.