WhiteGlove
MBA Program
We all know how successful McDonalds is, but have you ever thought why it's so popular? Can you imagine how popular McDonalds would be if each restaurant had different hamburgers, fries, shakes, coffee, etc.? You wouldn’t know what you would get if you walked into any McDonalds. The name “McDonalds” would mean nothing as customers would have no idea what to expect from one restaurant to another. Practically no one would go to McDonalds.
So, when McDonalds had a successful restaurant, they made sure if other people would like to also make money from McDonalds success, they would have to run it exactly like the original in the same way. The menu would have to be identical in each, and all the food would have to taste the same. Of course, McDonalds taught each new owner how to run the business. The owner would have to make sure every detail in operating the restaurant was done precisely as specified. That’s why wherever you go, you know exactly what to expect in each McDonalds restaurant. And, THAT’S WHY YOU GO, RIGHT?
When a company has a good reputation based on a successful way of doing business and attracting customers, it can sell the rights to use its name and procedures to someone who will build the exact same business in another location. After all, if it was successful in one place, it would be successful in other places, too.
White Glove, like McDonalds, is a franchise business, but White Glove doesn't charge for its franchise.
Franchises are the most successful kind of business.
The rights to build the business in a different place is called a franchise, and the money to buy those rights is the franchise fee. The company selling the franchise is the franchisor, and the person buying the franchise is the franchisee. Franchise fees are very expensive depending on the success of the business. (McDonalds charges around $50,000 in addition to the cost of building the restaurant to exacting specifications.)
In addition, a franchisee: (1) pays a monthly service fee also known as a royalty, which is a percentage of the gross income; (2) pays part of the start-up costs, which includes equipment, supplies, etc. and finance the rest of these costs; and (3) must be personally worth many thousands of dollars, possibly up to one million.
What's so
great about Franchises?
Why do people
pay so much
for them?
Why would someone who wants to own a business pay so much money for all those fees? Is it really worth it? The answer is a big, BIG “YES!” Here’s why.
Only 3.2 percent of all businesses are franchise businesses in the U.S. BUT THOSE BUSINESSES BRING IN 35 PERCENT OF ALL RETAIL AND SERVICE REVENUE! That’s a lot! Obviously the advantage of owing a franchise business has huge advantages to the business owners.
Here are the major advantages. First the general advantages are in blue. Then we explain in red the advantage by relating how it works if you were an owner of a White Glove franchise business.
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Increased Visibility & Recognized Name
With many businesses with the same name, the public becomes familiar with a name they know. As White Glove businesses spread across your area in different cities, and in different parts of larger cities, potential customers become acquainted with the White Glove name, which is the name of your business, too.
Franchise Advantages are...
There are many thousands
of cleaning company names out there
that complete with you.
BUT, as a franchise, the more freelancers who join White Glove, the more the public sees and hears about us. As our numbers grow, you are part of a well-recognized and trusted name in the cleaning industry.
All franchise owners work hard to follow the same policies and ways of running their businesses. The franchisor monitors each business to see that it is doing the same very good professional service, and giving the same good customer service as all the others. The public is then assured that the franchise name is associated with quality. As a White Glove franchisee, you know that other White Glove owners in your area are working just as hard as you in doing professional work and winning over their customers. Each successful business is a reflection on your business, too. When potential customers are looking for a cleaning service in your area, from even a long list of cleaning services, your business name—White Glove—will proudly stand out!
2. Brand Name with Excellent
Reputation
3. Best Chance for Success
With a recognized name and a positive reputation, franchises are successful money-making businesses. But success also depends on how owners run the businesses. Small Business Administration says that most small businesses fail because of weak management. With franchises, however, the franchisor gives ongoing help in training and other services making sure the franchisee runs the business in order to attract new customers, and to keep the business making good money. White Glove business owners get ongoing support including training, meetings to discuss new ideas, and other help to stay profitable. You’ll have the managerial know-how to be the best in your area.
4. Advertising & Marketing
In addition to an effective Website, the franchisor advertises, and promotes its brand name wherever their franchisees have businesses. If a franchisee wants to do local advertising, print ads, fliers, and brochures are available. Gneral marketing is paid by franchisees who pay a small fee into a special fund each month. Don’t worry about a Website, and keeping your name on Internet directories. You just focus on serving your current customers while White Glove takes care of bringing you new customers through the Internet and other media.
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recieve White Glove's franchise FREE of charge
According to our franchise agreement, you are licensed to exclusive use of White Glove's name and logo, and service and trade marks in your defined geographic area.
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operate your business in the White Glove way
Just like the White Glove business in the city near you, or the one in Nevada, or anywhere else you find a White Glove, each franchisee runs his/her business in the exact same “way.” It’s the “way” White Glove has been successful for over 10 years.
You use the same cleaning supplies, the same equipment, the same cleaning methods, and even the same procedures for dealing with customers. This is good for 2 reasons: First, you don’t have to take chances on trying different ways to run your business so it can be profitable—you have your money-making business already in place! Second, you don’t have to make decisions about what to do in any situation because White Glove has already made those decisions. You just make sure all policies and procedures are precisely followed.
Policies and procedures for running a franchise are detailed in what is known as an operations manual.
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pay royalty and marketing fee
Once you are on your own, like all franchise businesses, the franchisee pays the franchisor a monthly service fee generally called a royalty. It allows the franchisor to cover the costs of ongoing services delivered to the franchisees, and to provide the franchisor with a profit from its operations. Without this fee in some form or fashion, the franchise company would probably go out of business and not be able to support the brand and its operations, which could hurt all franchisees.
Fees are based on each franchisee’s gross income. So the less money you bring in each month, the less you pay in the two fees, and the more you bring in, the more you pay. This way, regardless of how much money your business is bringing in, it’s easy to afford the fees.
As a White Glove franchisee, YOU...
