1800 TV MAGICIf there aren't at least 10 x "value adds" that you are receiving as a direct benefit from the franchise royalties you pay - Why are you paying them to begin with?
About Franchise Fees ("Royalties")
In any franchise you will have franchise fee/s "royalty" and this is paid regardless of your franchise business being a success or a failure.
One thing that TV Magic, (and many of the good franchise brands), think about is:
"How much do we deserve that royalty? unless we're providing immense value!"
We recognise that if we are privileged to have a franchsiee invest in our brand.. we recognise that THEY COULD equally go out there and attempt to start the business themselves! So the BIG QUESTION is - what does the royalty give me? Is value stacked so high in exchange for that royalty/ franchisee fee that they would be nuts to not pay it??? ooorrr are they better off going out on their own ?
For going out on their own would mean they would save that $$ and earn more? If you don't know the answer to that question and you're considering any franchise purchase; then perhaps you should think twice about the franchise model you're investing in!
We tell you this - not because we want to risk convincing you NOT to buy one of our franchise territories.. but because we MOST DEFINITELY don't want you to buy one of the "bad franchise brands" where you'll become another 'statistic' that's adding to the mass consciousness that "franchising is not a good idea!" Too many people are burnt by bad franchise brands in Australia and TV Magic and many of the top brands have had a gutful - because they are giving franchising a bad name. Australia suffers enough from tall-poppy syndrome and what you may not know about franchising is that there are countless, hundreds of thousands of success stories in franchising (that don't make it to the media) and no-one ever hears about the SUCCESS STORIES! You should know that franchising has made more millionaires (for franchisees) than non-franchise businesses! Millionaires have been created in many franchise systems and we have a few of our own in TV Magic! (And they all paid fees...) but for now lets get back to the fees..
The attitude we have is simply this: - if the franchisee would genuinely earn more profits by going out on their own... why do we have a fee to begin with!?
The whole idea is help people.. it's what the franchise brand stands for right?
Having a successful model that people can tap into? and there's a genuine HIGH PROBABILITY that they will succeed! Because the franchisor isn't greedy, the fees are providing value in many forms that help the business make EVEN MORE IN COMPARISON (to going out on their own) and the VALUE OUTWEIGHS its own expense and 100% NEGATES / cancels out the "expense of paying the fee" in the first place! Otherwise, why have it!!!??
GOOD FRANCHISE BRANDS are built on a small fee / small % of the entire Franchise network.
It's no illusion that any business owner on the planet has to reinvest back into their brand new business. If you don't you'll probably fail. That learning curve and the cost involved comes in the form of many, many mistakes and lessons learned. When you join a mature franchise business model (and one that is not over-saturated) and one that "gives a shit" and one that believes in the "win - win - win"concept; you have the advantage that every other person who "tried it on their own" doesn't have and that is maturity and wisdom on your side. You have a support team that you can go to and ask "Do you think this is a good idea?" and with experience and convinction they should be able to answer you very quickly with answers such as "Absolutely, we recommend you do that! That will give you a return!" or " No, chances are that will be a waste of money! .. we've done that x times before and we've already learnt that lesson for you" etc.. That in itself can be worth all the fees you pay!
If there aren't at least 10 x "value adds" that you are receiving as a direct benefit from the franchise royalties you pay - Why are you paying them to begin with?
Other powerful ways that you can leverage off a proven and matured franchise business model include THE FOLLOWING 15X 'VALUE ADDS'
- Bulk buying power (products / materials / software / etc)
- Marketing Saturation
- Increased brand awareness (Reputation and 'good will' is not built over night - it has been said, that it can take a decade)
- Internal Marketing Teams - (again, utilises 'bulk buying power' - if you had your own marketing employee you'd have an addtional $50k - $250k expense)
- Shortcuts to growth, avoiding possible pitfalls and setbacks
- Ongoing Support, Training & Business Coaching that would cost you time and money + cost of mistakes and lessons learnt
- Internal Support from your franchise peers .. Hey if you're on you're own .. all your competition aren't going to give you their 'secret herbs and spices' or go out of their way to help you! In a strong franchise culture however,.. you may have "a dozen best friends" who are not competing with you directly but work directly and understand your business (because they also run your exact business- just in another city) and they are helping you because they know one day your brilliant idea might help them make money. A good franchise culture shares these best practices. Now if you were on your own.. the probability that you will suffer from what most entrepreneurs is very high! They suffer from a what's known as plateau-ing or ( hitting a 'ceiling'). For the entrepreneaurs that don't plateau or hit ceilings; THEY ARE SPENDING MONEY ON COACHING AND MAKING MISTAKES AND LEARNING LESSONS!! (and often twice as costly!) .. When you have coaches and peers that are directly in your business model (but not competing with you however) and you see them constantly breaking records; it not only shows you "it can be done" but FEELS REALLY GOOD when you can shamelessly ask for help "hey! How did you do that?" and they'll happily share away! The end result is something that looks like year on year on year growth! It has been said and it's true... A franchise brand grows; all its independant parts grow with it (like a rising tide). Strong franchise brands are constantly reinvesting the royalties you pay back into the business. They are constantly improving, re-inventing and making the sure the businesses/s services /products stay relevant and current. This is done with leverage, experience and maturity. (You really won't have time for it) and because the process is leveraged it costs a whole lot less than if you were to do it.
- Fast-track your learning curve / start up time - So the money you are making would be the equivalent of you with 5 years experience ( if you went out on your own).
- Premium branding / marketing attracts higher paying / premium customers
- Effective marketing = Higher number of leads
- Proven scripts and business processes (chances are, a strong franchise model has tested 1000 x of your 'best ideas' already; and has factual statistics as to "what actually works best") The scripts have also been tested across much larger samples - this basically means even higher returns
- National strategic relationships .. If you are a small business- you're not always invited to go door knocking asking "can you give me a try" vs a national franchise brand that reverses that relationship into a relationship that feels more like "they need us more than we need them" type of relationship and this naturally has more negotiating power which means more money / profits for you.
- Solutions for just about every business problem you'll ever face without it costing you as much time / money / stress. Business is hard enough as it is! Tax, paperwork, relationships, customers who don't pay, bad employees, the list is endless .. if you have a team that can do it in their sleep and support you.. you really can't put a price on that support! Most good franchise brands just do this and it's just "part of what they do"
- INNOVATION & Infrastructure that would be out of your budget if you were a starting out on your own. A typical example is TV Magic's No CALL CENTRE franchise business structure. This struture was pioneering in 2013 when it was launced and as of 2025 many other man in a van franchises are still behind the ball, playing "catch up" - trying to compete.
- Software ADVANTAGES A typical example is the TV Magic CRM (Over $500,000 & 13+ years in I.T development of our own tailor-made business software) and our NO CALL CENTRE business model. We challenge you to find one other Mobile Service Franchise that successfully runs a nationwide operation, can monitor and assist franchisees all over the country but does not have a centralised lead generation/ marketing funnel!! You won't find it! You see every single one of the 400-650 customers that call national franchise - TV Magic , the customers call the franchisee direct, they are calling the local guy directly ..on their mobiles and yet we still have full access and control and visibility to all this actively from head office! This is only possible with our CRM software! There's nothing on the shelf that anyone can buy that can do what our software does! It cannot be replicated! IT cannot be bought .. it's built purposely for TV Magic and the only way would be if another company actually built something from scratch and attempted to replicate it! But because it's not accessible to anyone .. they don't even know what they are copying!
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