Frequently Asked Questions

Owning a letting agency franchise

Richard Martin was on holiday in Portugal in 1993 when quite by accident he picked up a book on the world's most famous franchise, McDonald's. On reading it from cover to cover, he realised the truth that successful franchise brands depend upon rigid consistency in applying the business model. He was running training courses at the time which led to some of his most gifted delegates being offered the opportunity to set up their own Martin & Co office under Richard's direct supervision.

Do plenty of homework and make sure the business model is right for you. Remember that the franchise system enables someone to start up on their own and lock-in to a huge support network. It eliminates much of the stress, worry and uncertainty of going it alone - which can often be a lonely and highly risky route. But also remember franchising is not a quick fix. It requires hard work and commitment.

After you have completed your research you will need to submit an application form together with your CV. If we approve your application we will then arrange a franchise meeting with you at our Head Offices in Bournemouth in order for you to find out everything you need to know about the franchise.

Most Martin & Co franchise owners do not have previous letting experience, however many were landlords themselves prior to purchasing a franchise. Some have developed their own portfolio of rented properties with the expertise they have acquired in the franchise. But Martin & Co prides itself on transforming property virgins into property professionals who can generate fees from their knowledge.

Every franchise owner who joins is vetted to ensure they will be committed to maintaining the very highest standards of service and professionalism. You cannot compromise the values upon which the business has been founded. The brand and reputation is everything. It's hard to earn and easy to lose! Our comprehensive on-going training and support ensures franchise owners and their staff are able to deliver cutting edge service.

Listen to your franchisor. Their sole aim is to make you (the franchisee) successful. They have experience and will have overcome all the problems you are likely to face. The franchisor is your senior business partner, treat that partnership with respect and it should serve you well.

Starting your Business

I'm worried I might not have any business when my shop/online franchise is "launched". This never happens! Providing you follow your Operations Directors advice the tried and tested franchise systems that exist within Martin & Co will deliver to you landlord clients seeking to let out their property. The impact of the arrival of the UK's No. 1 letting brand in a new location gives you immediate credibility, and our frequently visited website www.martinco.com ensures you will have plenty of potential tenant enquiries.

Remember that both landlords and tenants need your services, the decision to rent a home or to let out an investment property are driven by necessity. You simply need to convince landlords and tenants that your Martin & Co franchise business can best service their needs.

Within your franchise agreement we will outline the territory you are receiving based on allocated postcodes. The only changes that will occur to this territory will occur at the time of your renewal.

On-line Franchises

We know of many areas of the UK with a buoyant lettings market , but where opening a branded Martin & Co shop as the first step might be financially daunting. A reputable local person, with a good knowledge of the area and the confidence, drive and determination to run their own business, could make quick progress if they had the right training, support and a strong brand behind them.

On-line agents will advertise using a fully branded car, letting boards, leaflets and a home page on the Martin & Co website , which automatically uploads available properties to the major property portals.

Resale Franchises

A resale will provide:

An immediate income stream capable of further development and which typically exceeds the cost of servicing the business loan.

Business systems are already in place, and the business may have premises and staff as well.

The Martin & Co brand is already enjoying local recognition operating within a pre-defined territory as agreed with the franchisor.

There is an existing landlord and tenant client base that has already chosen Martin & Co and offers excellent scope for further growth.

Resales do not come up very often, but when they do it's usually because a franchisee is retiring or there has been a change in personal circumstances.

Martin & Co has a thorough process to allow you to receive confidential information about a resale and have your financial advisers assess its potential value. Every resale includes a new 5-year franchise agreement, and there is full Training and Operational support to re-launch the business including, where applicable, relocation into better commercial premises. (The franchise fee of £18,500 + VAT will be charged in addition to the agreed purchase price.)

Training

Absolutely not! Effective training requires a mixture of theoretical knowledge and practical application. New franchise owners receive in excess of 4 weeks induction training within their franchise package.

All the Training Academy courses (except induction) are run throughout the year at convenient regional locations, allowing our new franchisees to complete their induction training programme within their first twelve months of trading at a pace to suit both their business and personal time commitments.

You will work with a number of training providers including a personal coach - your ''Operations Director''. An Operations Director is a seasoned lettings professional who has no additional duties other than supporting new franchise owners in getting to grips with their lettings and property management businesses, and working with current franchisees to increase their landlord and tenant client base, developing their team and opening offices in both new and existing territories.

Franchise Funding

An on-line franchise fee is £16,500 plus VAT. You will need to be in a position to invest a minimum of the franchise fee including the VAT.

A shop or resale franchise fee is £18,500 plus VAT. You will need to be in a position to invest a minimum of £35,000 including the franchise fee.

This could come from savings, inheritance, re-mortgaging your home, selling or releasing equity from an investment property or from a redundancy settlement.

No. A bank needs to see evidence that you are making a personal financial commitment to the venture. If you wish to purchase a shop or resale franchise then the bank could lend up to 70% of the total cost of getting the business started - including working capital and you will need to invest the remaining 30%.

If you wish to purchase an on-line franchise then the banks will lend upto 50% of the purchase price as an unsecured loan.

The Martin & Co business plan is recognised by major banks. We work with each franchisee to develop a highly detailed five year business plan that is tailored to your circumstances and chosen territory. The plan is in a format that our regular banks are familiar with and confident in. As part of this process the bank will conduct credit checks. You are able to obtain a copy of your own credit report from organisations such as Equifax, Experian and/or checkmyfile.

Martin & Co have dedicated points of contact at a national level so we can advise who you to speak to about franchise funding specifically. If you already have a good relationship with a banker then we can help you present the plan to your local contact. However make sure the bank you select is familiar with and supportive of a franchising business model.

We work with you to write the business plan. The plan is based on information about your proposed territory. As the prospective franchisee this research is carried out as part of your due diligence to ensure realistic projections. The business plan is projected to be debt free at the end of five years, with substantial earnings and strong asset value.

Director's drawings from 'day one' are set at a modest level which can be increased as the business moves into profit. Franchisees may also be able to pay themselves a shareholders dividend on the net profits of the business after corporation tax - this can be much more tax efficient than PAYE. Your accountant or tax adviser should be able to provide you with more information. Other expenses that the business can fund include the provision of a car.

If you wish to purchase a shop or resale franchise from us then you will need to have sufficient assets to offer as security on a bank loan. If your assets are jointly owned and the other party is not directly involved in the business they will also have to agree to offering the security.

If you wish to purchase an on-line franchise from us then we will normally be able to secure up to 50% of the purchase price as an un-secured loan as long as you have a good credit history and a good relationship with the banks.