Thinking of opening a franchise but fear you'll lose your shirt? At least one franchise company has a solution to that problem – a money-back guarantee.
Service Brands International (SBI), parent company of Molly Maid, Mr. Handyman and ProTect Painters, is offering a money-back guarantee to new franchise owners.
The company said it will refund owners' entire franchise fee if $150,000 in gross sales is not met within the first 18 months of operation, giving would-be business owners an "out" if things aren't going well at first.
The Mr. Handyman franchise fee of $19,900 and the Molly Maid and ProTect Painters fees of $14,900 will be covered under this guarantee if the gross sales figure is not hit.
The main reason behind our money-back guarantee is to convey our confidence to our franchise candidates that we strongly believe in our operating models," said Alex Roberts, president of ProTect Painters. "There is still a lot of fear for people starting a business in today's economy. If they went in knowing they could recoup their initial franchise fee if they did not meet specific criteria, it would help calm their fears. "
The current offer expires on March 31, 2012, Roberts said. The company may continue to offer the guarantee beyond that date, but that is not confirmed, he said.