A business start-up service says the cost of joining a franchise lettings agency can range from £2,495 to a hefty £150,000 - and that this route is relatively “low risk.”
The online service, called Startups, says the UK’s growing private rental sector and the proliferation of residential lettings franchises combine to provide a relatively low risk way of setting up a business.
It cites Peach Lettings, Belvoir Lettings, Martin & Co, and Century 21 as examples of successful franchises which offer training, meaning “you don’t need to have a background in residential lettings.”
The service gives an interesting insight into the costs of buying into a franchise: it says Belvoir! charges a “rather steep” £150,000 but this includes a high street outlet. Startups claims this is high compared to other non-property franchise opportunities “but, with most banks willing to cover a large amount of this funding, it’s more feasible than you would imagine.”
It says an alternative is the online agency route. “If you’re happy to work from home and aren’t fussed about owning a high street agency then Peach Lettings offers a far more affordable property lettings franchise package at just £2,495.”
Rather optimistically, Startups claims “you’ll ... be likely to get your investment back within no time. Belvoir says that the top 25 per cent of its franchise owners have an average turnover of around £332,000 and Peach Lettings says that franchisees can earn in excess of £100,000 revenue per annum.”
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Comparing to Belvoir's cost and track record is fine to point out a lower entry fee - But only if backed up by success rates that are similar to Belvoir.
I know that Belvior, Martin & Co and Century 21 attend BFA franchise shows like us - So they will have had to show business plans, proof of concept and accounts with audited proof of successful franchisees. The British Franchise Association are very careful about who can attend at their shows.
Franchisees are buying into a proven model and Belvoir have that. If we or Belvoir or any of the names mentioned are asked to give examples of franchisees earning revenue of £100k per annum, we can.
Peach should base the marketing on their own success stories and not on Belvoirs.
Nicely said Glenn- cheap franchises with unsupported claims do nothing to help our industry- in terms of active involvement or the client experience
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