Business Franchise Australia and New Zealand 49on quotes or finding opportunities to meet
new customers.
The commitment of time to a mobile service
business (where the operator is usually
the business’ entire labour force) also
increases during periods of peak demand
such as summer for a lawnmowing or pool
maintenance business.
Furthermore, whenever a mobile operator
takes time off work it costs them money
through lost income, as such businesses
rarely have employees to keep things going
when the owner is away. Of course this is
different for fixed-location businesses where
the owner is generally not the sole income-
“on the face of it, the single and most obvious difference
between a mobile franchise versus a fixed-location franchise
is the initial investment cost, but there is far more to it than
meets the eye.”fEATURE:
F ixed v
’S m
oBile Fr
AN
chi
SeS
earner for the business, and if they do take
time off, the staff can usually keep things
going without them (for a short while at
least).
So despite the potential for mobile service
franchises to offer a franchisee a high level
of flexiblity with where and how they spend
their time, this often comes at a much
greater cost than to the operator of a fixed-
location franchise.royalties
Royalties are the ongoing payments a
franchisee makes to the franchisor in return
for the continued use of the brand, systems
and the support provided by the head office
team.
In most blue-collar mobile service
franchises, royalties are paid as a set regular
amount, regardless of the franchisee’s sales
performance. This has the effect of making