Independent franchisee satisfaction reviews of today's top franchise opportunities
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Q: I am considering franchising with HomeTask and their Yellow Van Handyman. I am in British Columbia, Canada. I have a couple of questions: Can you give me a report on this franchise, pros and cons? In the current economic situation, is it feasible to start up a new business or franchise of this type. What would be your general opinion on this. I would have to borrow for startup fees.Thanks for any feedback you can give me on this.
Here's my answer to Havey...
Harvey - Thanks for your question. We surveyed HomeTask's franchisees back in October 2007 and their satisfaction was very good. Since then, they have re-branded the concept to Yellow Van Handyman. We have not had the opportunity yet to resurvey their franchisees under the new brand. You can request a copy of the report from their franchise development team. For contact info, visit http://www.hometask.com/franchise.aspx
As for specific pros and cons, as with any young franchise system, you really need to look hard at the training and on-going support that they offer and will they give YOU the level of support you need. Since they are not a well known brand, their training, support and marketing programs will be critical to your success.
Obviously the current economy is affecting everyone. My advice here would be to talk to a number of their current franchisees to see how their business is being affected. Specifically, you'll want to talk to as many new franchisees as you can - franchisees that have started up in the last year - as they will be the ones that are the most impacted.
Having adequate capital to start and grow any new business is obviously crucial. And especially in this economic environment, where it might take longer to ramp up your business and start generating income, having access to enough capital is critical. If you are borrowing most of the startup investment and will need to start generating income immediately to live on, I would HIGHLY suggest that you DO NOT invest in any franchise or business right now - unless you can borrow capital from a source that does not expect you to start paying it back for a few years (friends & family, etc.).
Whatever you think your total capital needs will be, you should double that number and be confident that you can get more money if you need it. The worst possible scenario is that you'll start your business, run out of cash 6 months from now and have to toss in the towel. Undercapitalization is the #1 killer of all businesses!
Despite the economy, now is a great time to start a business in the home services area as the need for home repairs is going to continue to grow in the years ahead. That said, expect it to take at least a couple of years to really get your business up and running and don't expect to be able to take cash out of the business for some time.
Hope this info helps, Harvey. I wish you the business of success with whatever you decide! Please let me know if you have any other questions.
Eric Stites
Franchise Business Review
Direct 207.439.1621
Cell 207.450.7678
Office 866.397.6680
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