Opinions most welcome ... on a potential business idea

Hi JessM
This is how they describe what you get for your franchise fee:

... What is included in the Franchise Package?

Training for Success
We want you to feel supported all the way, so as well as a full day’s training to get you on the right track, there will be ongoing opportunities to learn through monthly webinars and twice yearly conferences as well as telephone and email support. The * * Franchise is a great opportunity for you to add to your computer skills and learn how online social media can easily help you grow your business.

The training day is where you will learn how to set up, promote and launch a new group. It is a great opportunity to meet your fellow franchisees and members of the * * team.

The Training includes:
• Marketing
- how to get all the members you need through tried and tested marketing tools

• How to use PR and develop ongoing relationships with the press so that you get free promotion of your groups

• Learn how to join business networking groups e.g. Ladies who latte, to help gain more members

• Templates of all marketing and PR material are also provided

• Videos to teach you how to set up a Google Adwords account and how to effectively use Online Social Media to grow your business - valuable skills in today's world

• Meeting organising – how to set up and host successful meetings

• Negotiating good deals for events

• A spreadsheet template to use to keep track of your income and expenditure.

• And most importantly: how attitude and belief are key to your success!" ...

The franchise fee is a one-off for the allocated territory, and the ongoing fee is 10% of your income, paid monthly.

Outgoings are minimal, and I have gone through the spreadsheet they provided as an example, and it all adds up.

Timewise, most groups operate on a once-monthly meetup, so I'd need to be present for that, and spend time negotiating and organising future meetups. Not onerous . It is intended as a supplementary income, but for anyone keen to invest in setting up and running a number of groups in neighbouring towns, it certainly could generate enough to live on. Something I might consider in time, if it all stacked up.
I could do something like this without the framework of a franchise, but, quite honestly, what it took out of me trying to run a profitable business overseas, and the difficulty I've encountered trying to set up a small business from scratch since returning to the UK, have left me with no desire to ever try again!!
My take is this: If someone has created a successful business model, I am more than happy to replicate it under a franchise and pay the fee for the privilege. They have been far more successful than me at building a business from scratch, and I admire that. I don't have the enthusiasm to do that any more, but I enjoy working for myself, so if I see a concept I like the look of, I'm happy to have the support of a proven model to lean on, and none of the stress

Hi there
Some questions:

What do you get for your franchise fee? What do they expect from you?
Is there an annual fee or a per capita cut for instance?
Have you sat down with a spreadsheet and worked out all the finances?
How much time is it going to take and is the return likely to give you the income you need?
Could you do this yourself without the support of the franchisor?

NannaAnna it sounds as if you are well-qualified to do it, so go for it and Good Luck!!

Hi NannaAnna
I think it sounds like a great idea. I, too, have often found that I want see a concert or film that no one in my circle wants to see, and often go to events alone. It does take a bit of confidence to do that, and many of my friends would rather miss the event than go alone! I think a group like yours could fill a gap, and would offer a good way of meeting like-minded people. The amount of investment is small, and it sounds like you're up for the challenge - go for it!

It sounds as if you have answered your own question, NannaAnna
GOOD LUCK with it and if you go forward let us know how it's panning out.

Lots more questions
Greatnan all I've come across locally is the aforementioned Red Hat Club (with waiting list), and one church group.
Like Anagram I wonder if the subsidised groups are aimed at the older members of the community. The business I'm looking at is aimed as much at women who work from home, or single mums, as at the retired.
They currently have 13 groups, mainly in Kent, with around 1,800 members. Most events seem to attract around 15 to 30 members.
Gagagran No worries on either count: Apart from this past year, I have been self-employed for the last 15 years. I've also always had Public Liability Insurance in place, so there's nothing I'm not familiar with.
Gracesgran all those matters are indeed taken care of I've been involved with a number of franchises, so I'm familiar with what to look for. I'm used to working with large numbers of children and teenagers, putting on shows, running a choir, organising events - including overseeing up to 100 excited kids, so I think I have a fair bit of patience, stamina, and organisational skills. This would be a piece of cake . As to events and the choice thereof, members would chose what events suited them. There's no obligation to attend everything, so problems shouldn't arise. Demographically, it's fairly affluent down here, so I'm sure there would be sufficient interest.
Gracesmum and Nuttynorah - indeed, it is a risk, as is any new venture. I'm currently scratching a living, and working for peanuts, because my last venture (trying to set up my own business overseas) didn't work out. I am though, someone who would much rather give something a go, even if it fails, than look back and think "what if"? I've spent my life taking on new challenges, and once I've mastered them, looking around for something new! Routine and safe are not words in my vocabulary
As you say, if I have it to spare, £250 isn't a huge amount to risk. I only have it available because I have just moved and downsized, for the zillionth time, and have managed to free up a little bit of a financial cushion. I wouldn't risk the whole amount, but I feel comfortable investing this sum.
Since coming back to the UK literally penniless about 18 months ago, I have survived pretty well hand to mouth, initially with short-term contracts (Christmas working for M&S, followed by work on the National Census as a census collector, for example) and for the past year, a part-time retail job. This has suited me for the time being, as I needed to recharge my emotional batteries after an incredibly stressful couple of years, and didn't want anything remotely challenging! (Had enough of that to be getting on with in other areas of my life). However, as things are, I will continue to just about scrape by, with no prospect of retiring as I have no pension and no savings!! Not a bright prospect.
If investing £250, and time and energy, can generate a steady additional income, then it's worth giving it a go. If it doesn't work out, then it won't make that much difference in the long run, but at least I'll have tried
I think that has answered my question really!
To your other question Nuttynorah I think that if an event wasn't going to at the very least break even, then it would be cancelled, so the organiser would not end up out of pocket.
Thanks everyone for your thoughts

As someone has said NannaAnna it sounds very like a singles group or singles dinner group but without the men - which could be a positive . I think that you need to be very business like about it. With most franchises you have to pay an up front fee which should be used to set things up for you so it could include a computer, software, and some starting advertising material. Do the company help you PR the group when you start? Is this included in the set up fee? With no premises this should not be a large fee - you do not need premises or machinery, etc. I am sure there are similar franchises for setting up singles or dinner groups. If you can find out what their up front fee is you could see how it compares. This is not going to appeal to people on low incomes. Do you have a large number population in the ladies that lunch income group in your area? Do the franchise group do any research into this? My last thought is - do you think you would enjoy it? Not just the organising which would be fun, but finding places to go that suit the majority in the group - you will get complaints from some which you need to be able to shrug off (nicely of course). What about chasing people for their subscription the second year - how would you feel about that. Are you fit - you will be working very hard on the event days. Finally, I have always thought that all business ideas are good it's just they need to be applied in the right way in the right place by someone who enjoys what they are doing.

NanaAnna I see where you are coming from re over saturation of area I had not thought of it that way good luck with what ever you decide,I am sure you will do well.

Hi NannaAnna
I think a lot depends on whether you would actually enjoy setting up & running such a group? At the beginning, it would probably take quite a lot of effort to build up the numbers and to keep your members happy. If there wasn't a large membership, you may not get much return for your hard work. If you are a sociable person who likes meeting new people, that might not matter so much.
£250 doesn't seem a lot to invest but could you end up out of pocket if you booked an event and it was undersubscribed?

There has been some sound sense spoken above and I am not sure about the viability or indeed the attraction of such groups. However, many money-making schemes start from inauspicious beginnings.
When investing in a venture like this I would bear one thing in mind - can you afford to lose this money? It is a risk and a bit of a gamble and my (cynical) suspicion is that the person selling the franchise is the one who make the real profit. So if you could afford to lose it, take the chance, but if not, then I would, as we say, ca' canny.
But then again, perhaps that is why I am not Alan Sugar or Richard Branson!

Are there any tax implications NannaAnna? I suppose as this is a business venture you might find yourself having to register as self-employed? Also what about insurance?

Sorry to sound boring but it's all part of the consideration process. My own thoughts are that there are lots of different societies and groups for all ages and interests already in existence so I would be surprised if this proved to be a successful venture.

NannaAnna I agree, that would be fine as long as the annual membership fee was not too steep.

Greatnan, are the groups you mention for older people, or for all ages? There do seem to be more social events and activities provided for pensioners by local councils, but younger women are not so well catered for unless it's exercise classes or yoga.

My sister belongs to two social groups near her home in Manchester, but they are subsidised by the local council and meet (without charge) in the local library. All the organisers are volunteers (bossy types! how much we need them) and members pay 50p a week to cover tea, coffee and biscuits. They pay for each event they wish to attend.
If such groups operate in your area, it might be difficult to get people to pay much more to a private company.

Well put Riverwalk That's a good comparison

In reply Anagram - anyone feeling overwhelmed could just attend a monthly coffee morning, or a monthly lunch date. No obligation to do everything on offer

NannaAnna for some women it could provide a useful service, depending on what the annual fee is. Rather like Gym/Health Club membership, people could dip in and out of activities according to their likes, schedules, etc.

If you are one of the first franchisees and pay only £250 then that's not such a lot of money to risk. Good luck if you go ahead!

Overlap above, as I was busily typing whilst Butternut and Anagram posted.
Business-wise, there is the annual membership fee, and then the franchisee aims to make £5 a head on each event. As a franchise, you pay a percentage to the franchisor. In this case 10% each month.
Bear in mind the franchisee will put a considerable amount of time finding events, booking venues, negotiating good deals, and hosting the events, so the £5 per head is for their time across all those aspects.

That's right Anagram I'm someone who has moved an awful lot, both within the UK and abroad. Whilst I learnt a long time ago to just get out there and find friends, there are many people who for one reason or another, don't feel able to do that. Hopefully, a supportive and welcoming network would give them the impetus. I would also think that many women who suddenly find themselves widowed or divorced would not know where to start with creating a social network. I'm sure not everyone is fortunate enough to maintain good female friendships throughout their married lives. I think for many couples, they are each others lives. After loss, and once healing and recovery begins, many may want new friends but not know how to find them (and many others will create a new life with no external help at all. Any service caters for the needs of those who need that service.)
In recent years I have often wanted to go and see someone in concert, or a particular show, but don't feel that is something I'd want to do on my own. Quite often I've not had a friend who wanted to see that particular performer or show. I've often thought it would be lovely to have a network to call upon, as there would be bound to be at least one other who'd have the same tastes. Just one example
Glammanana you raise a valid point, but I would say that communities are not static. People come and go, and peoples' needs and circumstances change. You could apply the same question to, for instance, a hairdressers, or a nursery school. Both may be fully booked at a particular point in time, but that doesn't mean the businesses have served their purpose and will generate no more business.
I mentioned in my original post the awful-sounding (IMO ) Red Hat clubs. When my friend told me about them I googled the society, and found there is one in my town. They have a waiting list for membership, and have closed the waiting list because it is too long! Not sure how that works, but it certainly shows demand! I guess one would limit numbers to any one event out of sheer practicality, so if the events are popular enough, a waiting list could develop (in which case, open another group, I'd say)
I'm still slightly at the "should I, shouldn't I?" stage, so am more than happy to get differing points of view. Cheers

I haven't thought about the financial aspect - I suppose there must be profits to be made - but I take your point about the type of woman who would join such a venture. It does sound a bit too adventurous and 'out there' for the shy, retiring kind, especially if they're immediately thrown into group activities with strangers from day one.

Yes, of course, Anagram. I was trying to suggest that it is all out there to be done, without the extra expense.

If someone is feeling isolated, I can understand that it may be difficult to
get out there, so someone offering that chance seems like a good idea, yet maybe that sense of isolation might explain the difficulties some people find in joining such a venture.

It would suggest to me that if this business venture was advertised, it would be those who feel confident enough, and are outgoing enough, to 'join in' ........ and they would be the ones who, I suspect, already have a good social network.

Another thought occurs to me - as it is considered to be a business venture - what are the financial gains, and how will profits be made?

You are lucky, Butternut, but the point of the project NannaAnna is considering is to bring together women who perhaps haven't got a supportive social network, and would actually like someone to organise activities that they can join in. It all depends on demand in the area, I suppose.

When the mood takes me, and it takes my friends too, then we just get on and enjoy each other's company whilst engaging in something interesting, or not, or we just eat and chat.

I certainly wouldn't pay someone to organise that for me.

Feel glamm has a good point about saturations levels.

Sorry, but it wouldn't appeal to me at all.

NannaAnna It does sound a good idea for ladies who want to socialize at places you mentioned but would you not worry that your particular territory would become "full" with members because only a certain amount of women would be interested and then the franchise comes to a natural halt (does that make sense) I hope so.

I wouldn't touch it with a bargepole, but perhaps it's just me being wary.