Research Paper on Franchising – Written for an Introductory Business Class
The American Heritage Dictionary of the English Language defines “franchise” as a “privilege or right granted a person or group by a government, state or sovereign, especially suffrage…the grant of certain rights and powers to a corporation…authorization granted by a manufacturer to a distributor or dealer to sell its products.”
One franchise that would be a great investment would be one in United Recovery Specialists Inc. United Recovery Specialists Inc is a repossession company. If you are interested in owning a franchise, there are certain rules and guidelines that you must follow.
To be considered a franchisee, you must have a clean record, which means no convicted felonies. Even if you have one, you will not even be considered to own a franchise. One franchise in United Recovery Specialists Inc will cost you roughly between twenty-five to thirty thousand dollars just to use their name. With that, you must be prepared to buy tow trucks that cost between thirty and thirty-five thousand dollars a piece. These tow trucks are an important necessity in order to recover cars. If you are planning on going the cheapest way possible, then you would want to lease land. To have a lot big enough to support many repossessions you will probably be spending seven hundred and fifty to eleven hundred a month. Insurance will also be a very high expense. With an average of seventy-five repossessions a month you will be spending around thirteen hundred and fifty dollars monthly.
As far as employees go, you will probably need two adjusters (repo men). If the adjuster owns his or her own truck, then they will receive forty- three percent of gross invoice. Gross invoice will usually range between two hundred and fifty to three hundred and fifty dollars per repossession so the adjuster will receive one hundred and thirty dollars per repossession. If the driver does not own his or her own truck then they will receive twenty-five percent of gross invoice, which will entitle the adjuster to approximately ninety dollars. You also need a lot manager who will be expected to clean and inventory all repossessions. Salary for a lot manager starts at seven dollars an hour and he works fifteen to eighteen hours per week. You also need a secretary, who starts at around eight dollars and hour and works forty hours per week. You also need an office manager who takes care of all filing and calls banks with updates and his salary is approximately six hundred a week to start. And last but not least you will need a sales manager who contacts the collection department with bank finance companies. The sales manager has a starting salary of seven hundred dollars per week.
As far as licenses, you will need an auto dealer privilege license which cost approximately one hundred dollars and a collection or claims services license which cost approximately fifty dollars. If you own a United Recovery Specialists Inc business in North Dakota, then you must be bonded and licensed in North Dakota.
The owner of United Recovery Specialists Inc is Jason Tibuke. Mr. Tibuke owns the upstate branches of United Recovery Specialists Inc. Jason is the original founder of the business. George Smith owns the lower area branches of United Recovery Specialists Inc.
If you are considering opening or buying a franchise of United Recovery Specialists Inc, not only must you have a clean record and be licensed and bonded in the state of North Dakota, you must also have a reasonable net worth of two hundred and fifty thousand dollars. This is insurance in case of lawsuits or accidents.
There are no royalties required or stated in the contract. However, occasionally accounts are transferred from branch to branch. The length of contract or business agreement is that once you pay the initial twenty-five thousand to thirty thousand (depending on where you are going to locate) that you own the company and that you owe Jason Tibuke or George Smith nothing more after that.