Fair Rate for a Data Recovery Franchise

[Jared]

So I'm strongly considering the future idea of franchising out the Data Medics company name into a franchise opportunity for those looking to get into the business and not wanting to struggle so long to build up a customer base in their local area. Obviously some initial training (maybe two or three weeks) along with a measure of ongoing support would all be part of the initial package. Along with advertising materials, dedicated pages & blog on the Data Medics site, etc. so it would give someone in another area a quick jump into the market.

I already know two or three people who might be interested in this. In fact one was hoping I'd just sell him the company and work for him as a consultant so he could get a leg into the business (not gonna happen :lol: ).

My question would be, what do you think would be a fair rate to
1. Buy into the franchise initially (including the upfront training, advertising materials, etc.)
2. Ongoing annual membership to keep using the name and receiving a measure of included support (say maybe 100hrs/yr included, more at additional cost).

I have a few numbers in mind, but trying to figure out if I'm either crazy, or if it's even worth the hassle that this will be for me to get going on.

 

[pclab]

This will depend on the costs you already had and the costs on your country.
As you know, it changes allot from country to country.
I think you might need to think on how much is your year billing and how much are you willing to loose, after the other company starts to do their work and getting possible work from you to them.
In this case, maybe a percentage of the billing would be better, because you will always get some cut of the cake, even if they got bigger.
On the other hand, you will always be attach to them....

My opinion: if you are OK and getting good money and good jobs, stay with your self alone.

 

[LarrySabo]

My opinion: if you are OK and getting good money and good jobs, stay with your self alone.

I have to agree. I don't see this bringing in enough money to compensate for the time it takes you away from concentrating on your business. They can set up their own business, web site, etc., so I think what they would value most is the training and your shared experience/wisdom. That's what's hardest to come by for newly started DR businesses. I would bet you could make a viable business of offering training/counselling to newbies.

 

[Jared]

[post]5476[/post] I would bet you could make a viable business of offering training/counselling to newbies.

That's actually something else I've considered.

 

[lcoughey]

The other issues with the franchise is that one mistake by someone else under your brand could be the end of your brand. It takes a long time to build enough skills to be able to claim to be a data recovery pro. I think you'd be better off merging/acquiring existing data recovery businesses that already have a good reputation, facilities and qualified team to handle the jobs that come their way.

 

[Jared]

The other issues with the franchise is that one mistake by someone else under your brand could be the end of your brand. It takes a long time to build enough skills to be able to claim to be a data recovery pro. I think you'd be better off merging/acquiring existing data recovery businesses that already have a good reputation, facilities and qualified team to handle the jobs that come their way.

Are you trying to sell me Recovery Force?

 

[LarrySabo]

Are you trying to sell me Recovery Force?

:lol:

 

[lcoughey]

The other issues with the franchise is that one mistake by someone else under your brand could be the end of your brand. It takes a long time to build enough skills to be able to claim to be a data recovery pro. I think you'd be better off merging/acquiring existing data recovery businesses that already have a good reputation, facilities and qualified team to handle the jobs that come their way.

Are you trying to sell me Recovery Force?

How much are you offering?

 

[Jared]

$100USD, which I'm pretty sure is around $1000 Canadian Pesos by now. :lol:

 

[lcoughey]

Sorry, but @LarrySabo gets first dibs.