Where do Franchisees Get Their Work – What is the Size of the Market?
Our primary market is in home emergency insurance claims where the number of incidents that occur number in their thousands per day. As one of the top providers of home emergency claims handling and fulfilment providers in the UK we deal a high volume of claims that require repair works which our Local Assist franchisees have the opportunity to undertake. Once onsite, dealing with the initial emergency, additional work opportunities present themselves with the homeowner often requiring more work doing than is covered by their home emergency insurer.
A recent survey published in ‘The Voice’ magazine found that it typically costs 1% of a property’s value to maintain and repair it each year – see the below:
If an unexpected disaster happens in our home, that usually means the solution will involve money - and probably lots of it - to fix what’s gone wrong. In an ideal world, we’d have a little pot of cash stored away for exactly these kinds of problems.
Housing experts agree that sensible homeowners should allocate 1% of the value of their property every year to maintenance and property repair. With the average house price in the UK being £215,847, that means we should have a home improvement and repair account to the tune of £2,158.47 per year
Many people struggle to find a tradesperson that they trust to do a good quality job at a reasonable price. The Local Assist brand provides the reassurance to customers that they are dealing with an organisation that puts their requirements first and gives the peace of mind that they are going to receive a first class service. Below are more results of the survey published by the ‘The Voice’:
As well as the emergency insurance repair work available through Local Assist’s clients there is also an opportunity to undertake work for other parts of the Service Solutions Group which cover a wide range of works from boiler services, building repair work on commercial property, cavity wall insulation installation and removal, damp proofing, basement tanking and property drying and restoration.
What can Franchisees Earn?
The earning potential for the Local Assist franchise really depends on the effort you are willing to invest into your new business and the volume of work you are able to undertake. Firms that are looking to purchase a franchise license that have an existing infrastructure with multiple tradespeople able to undertake work are obviously able to generate more turnover than an individual working on their own.
We have prepared some prudent financial forecasts based on a single individual who can undertake emergency repair work for Local Assist and promotes the business in their local area in-line with our marketing recommendations. The headline revenue and profit are below:
Turnover: circa £40,000 for a single new territory
Gross Profit (after materials): circa £35,000
These numbers have been prepared assuming that a standard emergency call out will provide you with a revenue of £130 for each job and ‘follow on’ and private works for customers driven through either our leads or local area marketing will generate £400 revenue per job. The reality is that in many cases job values are significantly higher than we have quoted however we would prefer to under promise and over deliver rather than the other way around.