FranchiseHelp Interviews Concierge Home Services
FranchiseHelp speaks with
Rebecca Page, founder of Concierge Home Services. This Canadian based home
services franchise specializes in household management such as home cleaning, window
washing, duct cleaning, carpet cleaning, pet sitting, or home checks.In this
interview, Page reveals the benefits of owning a Concierge Home Services
the direction that the company is moving in,and why some professionals have
quit their jobs to get on board with this up-and-coming franchise.
What advantages do people have when operating under the Concierge Home Services name when they could simply start their own household management company?
The Concierge Home Services franchise has a proven system with all the kinks worked out. 10 years ofrunning this business has fine-tuned every operational aspect and clarifiedour ideal client and staff. We've seen would-be competitors come and go – by joining oursystem you get our experience and our support.
Why do most people decide to quit their job and start a business with Concierge Home Services?
Our franchisees love the work-life balance they get with our company. Our business operates weekdays and has lots of flexibility, unlike many other franchise opportunities which require evenings and weekends. Women really love using their detailed organization skills to be the boss and build a business which can work around their family.
How much time does an average franchisee put in to the business per week?
Including administrative tasks, I would say 35 hours a week.
When starting their own business from scratch most people expect not to draw a salary in the first year. What can most people expect to take home the first year as a franchisee?
That really depends on how much effort and time they put into connecting totheir community. We give lots of support to drive homeowners to the website,but local relationships matter also. A profit of $18K the first year is notunreasonable – a decent return on an initial franchise fee of $17K.
What do franchisees get for the $17k start-up franchise cost?
As with most franchises, the initial franchise fee covers initial training costs, ongoing support, and a 5 year term to license the trademark and operating system of the company. We also include the cost of setting up the new location on our website and doing all the SEO to drive local traffic to the new franchisee.
You started your business with a toddler at home. Can others expect to achieve the same success while juggling such a busy schedule?
We prefer that our franchisees have school age children, or full time childcare during school hours when they first start their business. While weprovide lots of flexibility to balance work and family, a new business needsthe franchisee to have their attention focused on networking, customerservice, hiring staff, and quality checks.
Do most franchisees actually do the labor that comes along with the franchise?
For the first couple of months, we recommend that the franchisees do most of the labour. This is the sweat equity that any new business requires, andmakes them better trainers and bosses. Once clientele builds, they hirestaff so that they can shift to further growing the business and maintaining relationships with their clients. Our franchises are primarily doing management and customer service, not labour.
The Concierge Home Services franchise is based in Canada. Any plans to franchise in the United States?
We have trademarked in the US and are open to expansion. Our concept appealsto busy homeowners who want solid customer service and a single source for avariety of services – there are lots of communities in the States withclients like that.
Rebecca Page CEO, CHS Licensing Ltd., Total Household Management.
Quantifying Yelp's Impact on the Restaurant Industry
Luca studied the effects of Yelp ratings on the revenue of restaurants and discovered several interesting findings. Studying the relationships of restaurants' revenues to their Yelp reviews in Seattle over a period from 2003 to 2009, he found a significant relationship between a restaurant’s average rating and revenue. One star’s worth of improvement on Yelp leads, he found, on average to an increase of between 5 and 9 percent in revenue. The average rating is more important than the review, as many Yelp users are overwhelmed by the sheer number of reviews on manyrestaurantpages and find it easier to consult the star rating. Luca also found two features which exacerbate the effect on revenue Yelp has. First, the more reviews a restaurant has, the more impact an increase in its Yelp rating will have on its revenue. Second, the more reviews by Yelp “elite” members, the more impact; “elite” reviews have almost twice as much impact as other reviews.
The first point I made ties into this, but you need to make sure you’ve done your research before you go ahead and sign a franchising agreement. And that doesn’t just mean from a financial perspective. There are so many other aspects in running a franchise that you need to understand before you get started. Most of this information can be found in the Franchise Disclosure Documents. Some of the most important things you should take a look at would be any legal issues the franchisor might have and the churn rate of franchises. Both of those could potentially be pretty significant red flags that might make you want to reconsider whether or not you want to open that franchise.
Social Media Will Sell Your Next Franchise. Just ask the Former VP of Marketing at the IFA
Franchisors need to have guidelines for franchisees when it comes to using social media, but to date, most have not put together formalized play books for franchisees to follow. There are plenty of things you can do so your franchisees can create innovative marketing strategies using Twitter, Facebook, location based networks, blogging, etc., as long as they understand the guidelines of the franchisor first.