What is a partnership or Franchising?
The term 'franchising' has been used to describe many different forms of business relationships, including licensing, distributor and agency arrangements. The more popular use of the term is the granting of a license by one person (the franchisor) to another (the franchisee), which entitles the franchisee to trade under the trade mark/trade name of the franchisor and to make use of an entire package, comprising all the elements necessary to establish a previously untrained person in the business and to run it with continual assistance on a predetermined basis.
The principle is simple - some companies choose to grow, not by developing in the conventional way, but by granting a license to others to sell their product or service. There are clear advantages to this:
You don't have to come up with a new idea - someone else has had it and tested it, too!
Larger, well-established franchise operations will often have national advertising campaigns and a solid trading name
Good franchisors will offer comprehensive training programmes in sales and indeed all business skills.
Good franchisors can also help secure funding for your investment as well as e.g. discounted bulk-buy supplies for outlets when you are in operation
If aware that you are running a franchise, customers will also understand that you will be offering the best possible value for money and service - although you run your 'own show', you are part of a much larger organisation.
Franchising is a means of starting and running your own business with a very high success rate: providing you choose a good franchise in the first place.
A good franchise will offer you a proven business format with the initial and continuing support that you will need. Your business will work under the brand established by your franchisor, using the business system they have developed and proven in the marketplace.
You will pay an initial fee to set up using the brand and the proven business format, and you will pay continuing fees for the support that will keep you in business earning profits on the trade that you do, and building a capital asset that you can re-sell.
There are a number of step by step systems in place to enable prospective franchisees to narrow down the large number of opportunities out there. Whilst there is no guaranteed fit to personal circumstances it is important that your search for the right franchise has some structure to it so that you are not just using your instincts.
A partnership with Just4Let enables people to build a profitable business by using an established, successful business identity and trading method. Full training is given followed by ongoing support along with access to products and services.
Why The Property Rental Market?
Several contributory factors led to the increase of attraction in rental property. The major aspect was that Pension funds would fail to provide the level of incomes promised when they were sold. As a result more people were and are, taking responsibility for setting up their own retirement fund through buying property to let out.
In the early days growth in the letting sectors was slow but has, more recently, been fuelled by the introduction of "buy to let mortgages". These multi-faceted products removed the financial burden of the ‘old’ commercial rate mortgage that was placed on rented property.
Most finance houses offer buy to let mortgages, which enable people of varying ages and professions to use rental income to pay for a share in one of the country's greatest assets - Property!
Who are the tenants?
Faster transport, the speed of communication and the growth in computer technology have all played their part in changing the way we work and where we work. A move away from the inner city work environment has given people greater flexibility over where they can work and live. In addition, rising house prices have meant many people cannot get onto the "property ownership ladder".
Just4Let tenants are a mix of local and commuting working people ranging from businesses, single professionals, business people from overseas, couples, families, semi-retired or retired people. Some of our tenants own their own home which they let out while they live in other parts of the country. Whatever the type of tenant, there is never enough suitable property to meet the demands of an ever increasing population.
Why do owners use letting agents?
Many property owners find that the responsibility, legislation and various levels of communication required in finding the right tenant and conforming to the various legal regulations a little daunting.
Our Landlords also use us as a "buffer zone" to keep the owner / tenant relationship on a sound business footing and due to our specialist service, all Just4Lets' owners need do is relax and receive a monthly income whilst we, the experts, take care of everything.
So why would I want to become a letting agent?
Lets look at the factors - the eventual growth in the market place, the failure of some pension funds, the buy to let mortgages, the available properties, the variety of tenants, the unique letting service. All these add up to make an ideal business opportunity for the right person to build a property portfolio in an ever expanding market place.
Property management couples a rewarding "service industry" career with a recession proof growth income, in that once it's under way, business income isn't wholly financially dependent upon making a sale on the day!
There is no large investment for stock and no commitment to a lease on a property.
Let’s give you an example.
You have some experience of a retail trade and quite fancy setting up on your own.
So you find a suitable property, you enter into a lease for a few years, within your local town centre and go ahead with purchasing stock.
All in all, these minor transactions could potentially cost you in excess of £100,000 and that’s BEFORE a customer has walked in!!!
Not SO minor!!
Now, if you’ve made an inferior purchase of stock then it’s probably going to sit on the rails until you have a ‘january’, ‘summer’ or a ‘mid season’ sale, and then, it will probably sell for something close to its cost price.
This is unfortunate but it does happen, EVERY day, in EVERY high street in the UK, and it especially happens to the large retailers who do this day-in day-out.
By providing a ‘service’ rather than an ‘item’ you take away the risk of items gathering dust on your shelves.
With the continued support and guidance of Just4Let the only outlay you’ll have is your initial investment which will be bought with a GUARANTEED buy back option.
You REALLY don’t have anything to lose!!!!
Benefits of acquiring a Just4Let franchise :-
1) Small initial outlay
2) Guaranteed Buy-Back value (figure given at initial purchase)
3) Comprehensive Training programme and Telephone Support 24/7 365 days of the year
4) Exclusive (defined area) licensed use of brand identity
5) Regional, National, branch network marketing
6) High spec Computer with 19” TFT screen, Computer software
7) Full IT support for 12 months
8) Supply of printed stationery and business cards
9) Supply of 25 Just4Let "to let" boards
10) Supply of 25 Just4Let “sorry it’s gone” Slips
11) Centralised telephone service (so you don’t miss any calls!)
12) Administration disc –including all documents and templates required
13) Ready to use advertising
14) Training and ongoing support
15) Assistance with Business Plan & Proposal