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  • #979548
    nick1111
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    Hi all,

    I have only recently stubbled accross this site and have found some information on here extremely helpful. I was prevously employed in finance and as a career change I have been conversing with the mob at VIP on potentially purchasing a 20k franchise. Everything seems pretty solid would like to see if anyone here has any feedback on this company or any advice on commerical cleaning frachises in general.

    I have had some experience in cleaning as I was employed as a cleaning while at uni. I am hoping to make at least 60k per year minimum whilst being able to spend more time with family. This is what i was making in the finance industry including all the unpaid additional hours these greedy corporations put you through these days. Any feedback would be much appriciated

    Cheers
    nic

    #1115129
    Divert To Mobile
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    sounds like your goals for this are about quality of life and money.
    Please correct me if Im wrong but dont cleaners have to work all night?

    Steve

    #1115130
    Lawyer-Matthew-1
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    Hi Nic

    There are particular legal issues that you need to consider if buying into a franchise (as franchisee). Apart from the legal considerations that apply to any new business, the particular things you will need to consider include:

    Complying with the Franchising Code of Conduct
    As a franchisee, you are required by law to comply with the Franchising Code of Conduct. The Code sets out your rights, obligations, what information franchisors must disclose to you, what your franchise agreement must contain, and what procedure you must follow for resolving disputes.

    Understanding your tax obligations
    You will also need to understand your tax obligations and how franchising payments and fees are treated for tax purposes. You may also need to consider whether there may be Capital Gains Tax (CGT) and Goods and Services Tax (GST) payable when you buy, sell, transfer or terminate a franchise.

    Entering a franchising agreement
    The franchise agreement is a legally binding document spelling out the rights and responsibilities of both the franchisor and franchisee. Before you sign an agreement you should obtain as much information about the franchise as possible. You should also make sure that all legal aspects are covered in this regard.

    Feel free to contact me if you would like further information.

    #1115131
    nick1111
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    thanks guys for the feedback,

    I will definately look over the paper work and make sure that the legal issues mentioned are addressed. It is difficult to find feedback from unbias persons who previous or currently are franchisee’s.

    You are correct in identifying my key priorities. Being financially comfortable to be able to pay the bills on time and spending time with family (I dont think I alone here). I also want more independence and remove myself from the day to day politics and competition that transpires in an office environment.

    I was not aware that most days cleaners are working throughout the night, whilst I am happy to work some evenings every night will not work for me. Can someone please clarifiy this.

    Thanks heaps guys
    Nic

    #1115132
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    This could be my error,

    Ive never uesd domestic cleaning services and I assume they would work during the day. (Terribly annoying when someone is vacuuming whilst Im trying to sleep)
    But commercial cleaning which I have used, occurs outside of business hours (terribly annoying when someone is vacuuming whilst Im trying to work)

    #1115133
    oasis1frog
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    Don’t know about vip most cleaning “franchises” are scams to ripoff less savvy people who are desperate to find work (eg migrants who are new to Oz). You pay almost as much to buy a cleaning job (ie. $30K to buy a $30K job for first year). There are so many traps in the franchise document, they will understate the hours to do the jobs, or the jobs can be terminated and you lost the whole lot. Also any new jobs they will keep it for the new franchisees (victims) who sign up, and the existing franchisees will left with no work. I told ACCC but they are happy to sit on their hands and let people getting ripped off.

    #1115134
    MatthewKeath
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    nick1111, post: 129142 wrote:
    Hi all,

    I have only recently stubbled accross this site and have found some information on here extremely helpful. I was prevously employed in finance and as a career change I have been conversing with the mob at VIP on potentially purchasing a 20k franchise. Everything seems pretty solid would like to see if anyone here has any feedback on this company or any advice on commerical cleaning frachises in general.

    I have had some experience in cleaning as I was employed as a cleaning while at uni. I am hoping to make at least 60k per year minimum whilst being able to spend more time with family. This is what i was making in the finance industry including all the unpaid additional hours these greedy corporations put you through these days. Any feedback would be much appriciated

    Cheers
    nicI’ve been of the opinion that if you have $20,000 to spend on a franchise, you could use that cash and start your own cleaning business with out being tied to VIP.

    Then you get to keep all the money!

    #1115135
    Cjay
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    MatthewKeath, post: 129471 wrote:
    I’ve been of the opinion that if you have $20,000 to spend on a franchise, you could use that cash and start your own cleaning business with out being tied to VIP.

    Then you get to keep all the money!

    Building on that, if getting clients is a scary thought, you’ll find that most franchisee’s still go out searching for clients as to get anywhere decent.

    Alternatively there are cleaning jobs which can be bought from wholesale suppliers, essentially buying a contract at a guaranteed price etc. This is commercial cleaning however, which as previously mentioned is night work.

    #1115136
    birchy67
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    Hi Nick,
    I too thought about getting into a franchise as well (Hire A Hubby), but decided not to go ahead with the franchise because of the huge amounts which are to be paid to them each month. I’ve decided to start my business up from scratch & will be starting shortly. I know it seems daunting at first, but if you get the right advice, research your market & get the right advertising to put yourself out there, you should be able to make more money for yourself than with a franchise. Some franchises only give you limited areas to work within which also limits your potential income. Whatever you decide, good luck & all the best with it all.

    #1115137
    Divert To Mobile
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    Nice move Nick, I dont like the thought of buying a franchise either.

    Steve

    #1115138
    SACKO
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    nick1111, post: 129142 wrote:
    I have had some experience in cleaning as I was employed as a cleaning while at uni. I am hoping to make at least 60k per year minimum whilst being able to spend more time with family. This is what i was making in the finance industry including all the unpaid additional hours these greedy corporations put you through these days. Any feedback would be much appriciated

    We are a franchised company so can give you a little advice on what we look for in suitable franchises. Having pervious cleaning experience should be a positive. This way you at least know that you don’t mind the kind of work you will be required to do.

    I’m not sure financial what is realistic to earn within the VIP network but I would think in most franchise system you should be able to earn at least 60K a year or more. But it is possible that you will start earning a smaller amount than you currently do until you have been in business for a while. This is something I would suggest you speak about with some current franchises to get a better idea of what to expect.

    The real decision you most likely need to give some thought to is whether you will happy doing the business elements of the VIP business.

    #1115139
    nick1111
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    hey all,

    thanks heaps for your replys. Seems like the the majority are not in favor of the franchise system. I have been searching online and have found it difficult to get feedback from current frachcisee’s in the cleaning industy with a success story. Seems like most people are not happy with the level of fees, lack of work, and poor service once registered with the system. I will definately be putting more research into this venture.
    Cheers
    Nick

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