I have looked into Real Property Management, All County PM, and Property Management Inc. There are definitely distinguishing factors between each. I do believe a franchise can be of great value but here are the things I am struggling with:
1.) Franchise Fee - It is my belief, please tell me if you think otherwise, that none of three have strong enough name recognition where owners/investors/tenants migrate towards them. I do believe there is tremendous value in there experience and expertise but to me that is where the ongoing royalty comes in. I would gladly pay a consulting fee on an as needed basis but am I actually receiving $30,000 (franchise fee) in up front value and 6% or more of gross revenues (on going royalty).
2.) I think you get the highest value per dollar spent during the first few years. Once established, say years 5 and on, I believe my experience level would be to a point where I would only rely on them for extreme situations because by then I should have experienced most of the ordinary issues. So my costs would be rising, assuming my business is still growing and I am paying % of gross revenue while I am utilizing their expertise less and less.
I am not opposed to the franchise system at all. In fact, I am still considering going that route. I am just having a hard time justifying some of the costs versus what I am receiving in return. If I were to put the same upfront dollars into marketing and personal living expenses while treating the monthly royalties as a "marketing monies" would I be better off?
Any advice on either the franchise and/or the Property Management Software would be greatly appreciated.
Thanks!
