20 Questions you should be asking a Franchisor before you join their network.

Inside Franchise Business recently released a list of 20 questions you should ask a Franchisor before making any decisions about joining their network. 

So, in true James fashion, we thought we’d just answer the questions for you and make the information publicly available, without you having to ask!

1. How long was the business operating before it became a franchise network?

James Home Services has been a franchise network for 32 years in Australia. It was born out of a car cleaning business in Brisbane established and run by Robert James. He was an astute business man and identified that if he applied the same principals to other businesses, as he did his mobile car cleaning business he could see the growth he had experienced amplified across Australia and he could help scores of people own their own businesses.

2. How experienced is the franchisor team?

Our leadership team is second to NONE! Our head of sales and one of the owners of the network has almost 15 years in the network. All three of our business coaches have run businesses; two have almost 15 years’ experience EACH in our network and the third has more than 30 years’ experience in helping grow businesses in franchise networks. Our CEO is experienced in turnaround management and transformation, management consulting, regional economic development consulting and small business management. Our graphics and content wiz has more than 15 years’ experience in this area, so does our finance wiz and our customer service and franchisee support wiz has almost 10 years’ experience in our network and a lifetime of experience in customer service and support. We’re pretty confident you’re going to be challenged to find another team so equipped to help their franchisees find success in their businesses.

3. What is your financial investment in the business?

If you purchase under our subscription model, then you’ll pay just $1000 + GST upfront plus $125 + GST weekly.

If you purchase upfront and outright, you’ll pay $26,600 for a cleaning business or a lawn & garden care business.

4. Who owns the intellectual property?

We do. We’ve worked really hard to build our brand, our brand assets and our image so that it benefits our business owners; it’s important that we own and control the brand, for the betterment of our business owners.

5. When was the last brand refresh?

Across 2020 and 2021 we refreshed our brand. We continue to generate new creative assets regularly as part of our continuous improvement goals.

6. What peaks and troughs are there in the business?

There is a natural slowing down around Christmas time in terms of revenue for our businesses – a large part of this is our business owners choosing to take time off to spend with their families or allowing themselves a well-earned break, but we do notice less enquiry coming in over the Christmas period.

For our Lawn & Garden businesses, the winter months are quieter than others as lawns and gardens don’t grow as much in winter and don’t require the same frequency of maintenance. Customers aren’t lost necessarily, just the frequency of their service is decreased. We work strategically with business owners over the slower winter months to offer seasonal services and lay the marketing foundations to attract higher volumes of enquiries once the demand returns as the weather warms.

7. Are there any financing arrangements?

Nope. If you can’t afford, or don’t wish to pay the full purchase price upfront, you can opt for our subscription model. However, this is not a loan. There is no loan agreement and no interest charged. It’s simply an offering that makes purchasing a business more affordable and more accessible.

8. Are there company-owned units in the chain?

No. All our businesses are owned by individuals. None are owned by James Home Services Australia. We think this keeps it fair for all. There is no risk of you being in competition against a business we own, and there’s no concern that we might be giving special treatment to a business we own. 

9. How many franchisees renew their agreements?

We’ll be honest… not many. But that’s not because they’re unhappy with James, it’s because after 5 years of operating a business, they’re looking for another change of pace. We do see our larger businesses renew for additional terms, or those who have built a rhythm around servicing just their regular clients and who are content with that. However, a large proportion of business owners choose not to renew and pursue other work or a different style of business to give themselves another change and another challenge. We also see a lot of couples start a James business after a long corporate career, and as a step down into retirement; so a lot who choose not to renew are doing so because they are retiring.

10. Who will be the main point of contact for me as a franchisee?

Your Business Coach! Your Business Coach is your primary support person and contact for anything you need. We have a structured coaching program that typically sees your business coach in contact with you on a daily basis over the first few weeks, then weekly up until 5-6 months, then after that, however frequently you both decide is required. If you need help in between scheduled coaching sessions, all you have to do is reach out. The scheduled sessions are designed to progress your business and your skills as a business owner… but if you need help in between your business coach is ‘on call’ to you!

11. How do franchisees and the franchisor connect with each other in the network?

Mostly via video and phone calls. Our network is spread from Melbourne to Cairns and everywhere in between. We also have a presence in South Australia. Our Head Office team is also located throughout Aus. So video call is the easiest and most effective way for us to connect. We do also organise social catch-ups for our franchisees where we have quite a few in the one area.

12. How do you help underperforming franchises?

This is a whole topic of its own! But here’s just a few things we do…

• We have an extremely streamlined onboarding process so our business owners are clear on what they need to do right from the beginning and can hit the ground running.
• Franchisees complete both business management training and practical training so you feel confident in what to do in both areas of your business.
• We have an Accelerated Start Up Program focused on getting your business started fast.
• We get you started on activities to attract clients before you’ve even officially begun!
• We market your business for you online, to help feed the leads pipeline.
• We focus on business coaching, and addressing issues early as preventative is always a better approach.
• We really work on developing your skills as a lead generator and converting leads to customers so you can really take control of your business and its growth.
• We have a ‘re-start program’ if your business isn’t firing within the first 12 weeks.
• We have a Survival Action Plan if your business is failing.
• We roll our sleeves up and help in any way we possibly can… so long as you are helping yourself.

Notice that only the last 3 points are ‘reactionary’ to your business being in trouble. Our focus is on working with you in such a way that you never find yourself in this position. If you do, we have a plan for what to do… but we like to focus on being proactive and teaching you the skills you’ll need and sharing the knowledge you’ll need to get your business performing well from the beginning.

13. How often will I need to refurbish the store or update equipment?

You’ll never need to refurbish your store – because you’re a mobile business. You may need to refresh the branding on your car if it fades or the decals lift over time.

You are responsible for replacing your equipment when it becomes unreliable or unsafe to use; but we don’t stipulate when this occurs, you’re in control of that decision as the business owner. Some networks will enforce that you must use certain equipment and if their policy changes, that everyone must update their equipment… we don’t do that.

14. Is there a call centre for leads and how are these dispersed?

Yes, we do operate a national call centre for leads.

Leads received by the call centre are matched by service, to the franchisee in that location and then sent directly to the franchisee via email and text as well as the lead being automatically logged as a job in our business management software.

Leads are distributed via a mapped area that each Franchisee is granted. No other franchisee shares your mapped area, it’s yours exclusively to trade in – so you’re never competing against another James business owner.

15. How much control will I have over any ordering and choice of supplier?

We stipulate who you must purchase your uniforms, cleaning products and marketing materials from… other than that you can choose to purchase business supplies from wherever you wish.

16. Will I get any help with staff recruitment and training?

Absolutely! We have an entire training package we can step through with you if you wish to engage staff in your business, and would like some training. It provides guidance on the steps to take, as well as templates for job ads, position descriptions, employment agreements as well as how to conduct an interview, how to check referees, how to manage staff effectively as well as what to do from a Workplace Health and Safety perspective. We can step you through the process step by step, or you can use our resources to run the process yourself – it’s entirely up to you and what feels comfortable.

17. What minimum orders or benchmarks to I have to meet?

None. Your business goals are set by you, not us. However, the first goal we help you set, is break-even. We have tools and resources to help us calculate that with you. Once you’ve hit break-even, then we can step it up, and aim higher based on your own financial or lifestyle goals. We will help you design a pathway to the goals you set for yourself, but we don’t have specific goals you must meet.

18. Is there an optimum time to open a business?

Just don’t start a business around Christmas time… because the market can be a little slower for brand new businesses as clients are on holiday, away, have a million things to do, and not really in a purchase mindset for assistance around the home.

If your interested in a lawn and garden care business, then we strongly advise against starting your business in the dead of winter; it will be a much slower start because the lawns just aren’t growing!

19. Who finds the site?

There’s no site in our model because your business is mobile. This decreases your costs and obligations significantly! Your vehicle is your workplace and most franchisees choose to use their existing vehicle for their business. We pay to have it sign written when you start – so you stand out in the market and so that your marketing your business whenever you’re driving your car.

20. What are the criteria you use to select franchisees?

Here’s what we’re looking for:

• A can-do attitude and a solid work ethic
• Someone who is prepared to take responsibility for their business and the outcomes of their business
• A clean Police Check
• An Australian Citizen
• Basic IT skills
• Previous experience in customer services, sales or admin is your advantage; but we can teach you these skills if you’re willing
• You must have sufficient working capital – we assess your cash position to ensure that even if you have a slower start, you have sufficient reserves to cover all your costs in and out of the business
• A preparedness to work in the business; employing staff is definitely possible, but you’ll need to put the hard yards in yourself to build the business first
• Hubby/wife teams typically do quite well in our network and business model, especially where they possess complimentary skill sets