Small Business Stories -Service Brands International Video

By: Guest More than a year ago

Dear Small Business Entrepreneurs, Do not even think about purchasing any franchise from Service Brands International. This includes Molly Maids, Mr. Handyman, 1-800 Drycleaning, and ProTech Painters. They do not support you as an owner. I still currently own one of their franchises, however they spend all of their time trying to squeeze their franchisees for every last penny. They are clueless on how to market in today's struggling economy. They take bribes and kickbacks from Marketing agencies, and support only their favorite owners who they pay for their advertising bills so they have a couple of prize owners like Rob Carpenter to put on a pedistal to protential buyers. Best of luck if you decide to pony up your life savings to buy one of these franchises!

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Small Business Stories -Service Brands International

Alex Fees: I’m Alex Fees on SBTV.com coming to you from IFA, the annual conference this time in Orlando, Florida and joining me here now is David McKinnon. Mr. McKinnon is a long time IFA member and past IFA Board Member. Mr. McKinnon let’s go to your, what you do on a daily basis first. Tell me about your business. David McKinnon: We have three main businesses that we franchise, 1-880 Dry clean, pickup and delivery dry clean laundry, Mr. Handyman in home maintenance and repair and Molly Maid house cleaning. Alex Fees: Okay, so you know this industry well. David McKinnon: We’ve got about 1100 franchises across six countries. Alex Fees: Wow! David McKinnon: And expanding everyday. Alex Fees: As we speak. David McKinnon: As we speak. Alex Fees: You were IFA board member starting in the late ‘90s from ‘98 through ‘06 take this back. Then what’s in the environment back for franchising in general and specifically for IFA in the late 90s. David McKinnon: Well, the IFA is changed dramatically and particularly in the last 10, 12 years. I remember the big goal was to break 500 members and then 800 members, and today I think our memberships approaching 3000. Alex Fees: Yeah. David McKinnon: And we get almost 4,000 people here this weekend mind boggling. My first meeting was at the IFA convention in Miami and there were probably 200 people there. Alex Fees: Boy, now we have a break out sessions that are larger. David McKinnon: Exactly, yes. Alex Fees: The ‘90s are known for big business. Relatively speaking big business, little business, good business, bad business where those franchising fit in there? David McKinnon: Well, most people are surprised to know how large a franchising is, and what impact it has in the economy and secondly, how large some franchise businesses actually are just on a stand alone basis. Today, many of our businesses are over a million dollars a year in sales, and people just don’t think of a service business being of that size and of that magnitude. Many employ 50s, 100 employees, full time everyday, and when people first think of franchising I don’t think that’s the kind of thing they think about. Alex Fees: Okay, are you talking about your industry in particular? David McKinnon: Yes. Alex Fees: Okay, what about franchising in general? Does that hold true though, general thinking? David McKinnon: I think in the last 15 years we’ve seen a dramatic rise from franchising being an owner-operator business to franchising being running a business and sometimes running a large business, and that’s how our businesses have migrated through the 90s. You asked me, what are some of the differences between the 90s and today? Alex Fees: Right. David McKinnon: I think there are some dramatic differences. One, the quality of the franchisee prospect today is significantly higher because the franchise buying consumer is a more sophisticated, more research driven. The advent of the internet has given equipped perspective business people to look more seriously and in-depth of franchising, and therefore, the caliber of people coming into our organizations to buy a Handyman franchise, to buy a Molly Maid franchise are significantly more sophisticated today than people that were coming to us in the 90s. Alex Fees: Mr. McKinnon, talk about the effects of the economy on franchising. David McKinnon: Well, it’s a double edge sword. When the economy is softening and when thousands of middle managers many with good degrees and good business experience are being forced back out of their jobs, so down sizing or mergers they are forced to look at their next move for their career. Do they want to take another job and potentially risk being downsized again? Do they want to move to a new city and new market disrupts their family, and as a result of that disruption often times people will now consider buying a franchise. And as a result those people are now are number one target candidate for franchisees to open up new businesses for us. And as a result, the downsizing and the softening of economy is a good thing. We get more prospects that are quality people looking at our business. Alex Fees: It sounds like there’s a little bit of thinning of a herd. David McKinnon: There is. One of the sayings we say is, everyone who wants to start a business, but no one starts until they are forced too because of the risk. And when the risk is greater when people are forced then to making these decisions when the economy starts to soften, people get more serious about it and as a result it’s a win fall for good franchisors. Alex Fees: That’s Dave McKinnon. He gave much history and perspective. Thank you very much. David McKinnon: Thank you.

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Alex Fees: I’m Alex Fees on SBTV.com coming to you from IFA, the annual conference this time in Orlando, Florida and joining me here now is David McKinnon. Mr. McKinnon is a long time IFA member and past IFA Board Member. Mr. McKinnon let’s go to your, what you do on a daily basis first. Tell me about your business.

David McKinnon: We have three main businesses that we franchise, 1-880 Dry clean, pickup and delivery dry clean laundry, Mr. Handyman in home maintenance and repair and Molly Maid house cleaning.

Alex Fees: Okay, so you know this industry well.

David McKinnon: We’ve got about 1100 franchises across six countries.

Alex Fees: Wow!

David McKinnon: And expanding everyday.

Alex Fees: As we speak.

David McKinnon: As we speak.

Alex Fees: You were IFA board member starting in the late ‘90s from ‘98 through ‘06 take this back. Then what’s in the environment back for franchising in general and specifically for IFA in the late 90s.

David McKinnon: Well, the IFA is changed dramatically and particularly in the last 10, 12 years. I remember the big goal was to break 500 members and then 800 members, and today I think our memberships approaching 3000.

Alex Fees: Yeah.

David McKinnon: And we get almost 4,000 people here this weekend mind boggling. My first meeting was at the IFA convention in Miami and there were probably 200 people there.

Alex Fees: Boy, now we have a break out sessions that are larger.

David McKinnon: Exactly, yes.

Alex Fees: The ‘90s are known for big business. Relatively speaking big business, little business, good business, bad business where those franchising fit in there?

David McKinnon: Well, most people are surprised to know how large a franchising is, and what impact it has in the economy and secondly, how large some franchise businesses actually are just on a stand alone basis. Today, many of our businesses are over a million dollars a year in sales, and people just don’t think of a service business being of that size and of that magnitude. Many employ 50s, 100 employees, full time everyday, and when people first think of franchising I don’t think that’s the kind of thing they think about.

Alex Fees: Okay, are you talking about your industry in particular?

David McKinnon: Yes.

Alex Fees: Okay, what about franchising in general? Does that hold true though, general thinking?

David McKinnon: I think in the last 15 years we’ve seen a dramatic rise from franchising being an owner-operator business to franchising being running a business and sometimes running a large business, and that’s how our businesses have migrated through the 90s. You asked me, what are some of the differences between the 90s and today?

Alex Fees: Right.

David McKinnon: I think there are some dramatic differences. One, the quality of the franchisee prospect today is significantly higher because the franchise buying consumer is a more sophisticated, more research driven.

The advent of the internet has given equipped perspective business people to look more seriously and in-depth of franchising, and therefore, the caliber of people coming into our organizations to buy a Handyman franchise, to buy a Molly Maid franchise are significantly more sophisticated today than people that were coming to us in the 90s.

Alex Fees: Mr. McKinnon, talk about the effects of the economy on franchising.

David McKinnon: Well, it’s a double edge sword. When the economy is softening and when thousands of middle managers many with good degrees and good business experience are being forced back out of their jobs, so down sizing or mergers they are forced to look at their next move for their career. Do they want to take another job and potentially risk being downsized again? Do they want to move to a new city and new market disrupts their family, and as a result of that disruption often times people will now consider buying a franchise. And as a result those people are now are number one target candidate for franchisees to open up new businesses for us. And as a result, the downsizing and the softening of economy is a good thing. We get more prospects that are quality people looking at our business.

Alex Fees: It sounds like there’s a little bit of thinning of a herd.

David McKinnon: There is. One of the sayings we say is, everyone who wants to start a business, but no one starts until they are forced too because of the risk. And when the risk is greater when people are forced then to making these decisions when the economy starts to soften, people get more serious about it and as a result it’s a win fall for good franchisors.

Alex Fees: That’s Dave McKinnon. He gave much history and perspective. Thank you very much.

David McKinnon: Thank you.

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