Tuesday, August 26, 1997
Careers By Dodge Johnson
Paul has exclusive rights to the Merry Maids name, products and services in his territory. And the company offers sophisticated advice, training and support gleaned from years of experience with more than a thousand franchises.
In return he runs his business the Merry Maids way -- any team from any Merry Maids will clean your bathroom starting at the top and working down to the bottom. He uses their supplies and keeps his books on their computer programs. And he pays the company a percentage of gross sales.
``We're a team,'' says Paul. ``It starts with the franchiser and trickles down to me and my team members.''
``We have meetings and training sessions -- a lot of good suggestions come from team members. But we also have parties, bowling with banquets, contests with prizes for things like guessing the number of jellybeans in a jar.''
Merry Maids also works hard -- after all, the firm is only successful if its franchises are successful.
``Besides initial training, we offer advanced seminars in financial management, supervisory skills, quality control,'' says Vance Mehrens, vice president for operations.
``We offer phone support, office visits, training materials for team members. And we offer a full marketing program since getting the word out is crucial.''
How did Paul and Merry Maids hook up?
``I've always had an entrepreneurial streak. I worked for a Midas Mufflers and a Hillary's ice cream parlor -- both franchises. So when I got the itch to run my own business, a franchise seemed the way to go.''
So Paul took the plunge. But instead of paying the franchise fee and starting from scratch, he bought an existing Merry Maids in Havertown to jumpstart revenues. Now, eight years later, his service cleans more than 10,000 houses a year.
What's it take to succeed in running a franchised business?
``The keys are a desire to grow a business, energy, people skills -- and not just with customers. If you can't deal with cleaners, who are often high turnover, you can't be in this business.
``And you have to be realistic about money. We figure start-up will cost $35,000 to $60,000, including the $21,500 franchise fee. And it may be a while before you're making enough live on.''
Paul points out that he's the man on the line.
``There's a lot of detail, and there are plenty of frustrations -- a team can't get in because the customer forgot to leave a key. A car broke down and a customer blasts me on the phone because her cleaners haven't shown up. You still have to be sweet as honey and remember that you're in a service business.''
Franchises account for more than 40 percent of retail sales and they're important in more than 70 industries. Some examples are education (Berlitz), food (Domino's, McDonalds), hotels (Ramada, Sheraton), and agribusiness (Agway, Chemlawn).
``They're growing 10 to 12 percent a year,'' says Don DeBolt, president of the International Franchise Association, which includes both franchisers and franchisees. ``Many new owners are downsized people reinventing themselves -- transferring skills they learned in the corporate environment to a new challenge.
``There are no glass ceilings. Many franchisers actively recruit women and minorities. They're not only wonderful additions, but they can also penetrate new markets.''
``There really is a franchise for almost anybody's budget from a few thousand to several million dollars -- bricks and mortar can be expensive. Some people invested a little and walked away with millions; others have invested a lot and lost every penny.''