The Canadian franchise market is very competitive as increasing numbers of people interested in starting a business consider buying a franchise rather than starting their own business from scratch.
I interviewed Hubert Kelly, President, for more details on the Murphy Business Canada franchise and the financing help this Canadian franchise offers its franchisees.
The Murphy Business Canada Franchise
Murphy Business Canada, "North America's Premier Brokerage Firm", is a business brokerage franchise.
As a Murphy Business broker, you will work with buyers to buy existing businesses or new franchises, provide business owners with business valuations of their businesses or appraise their machinery and equipment, assist larger companies with mergers and acquisitions, and provide clients with commercial real estate brokerage, leasing, property management and search services.
Besides "stand-alone" Murphy Business Canada franchises, the company also offers an add-on franchise opportunity for accountants, attorneys, appraisers, real-estate brokers and other financial industry businesses. For instance, an attorney can add incremental revenue to his or her business by adding on the Murphy Business franchise.
As of time of writing, there are 6 Murphy Business franchises in Canada and 135 in the U.S.
Interview with Hubert Kelly, President
How much money do franchisees need to buy a Murphy Business Canada franchise and what, if any, additional costs might they incur?
They have to be sufficiently capitalized to work up to a year without any income. To sell a business it usually takes six to twelve months to get a listing and make that first sale. They need to support themselves for a year.
In addition, individuals should have a minimum of $50,000 to $60,000 of working capital ($15,000 down, $12,000 initial start-up marketing – the remainder of expenses are business start-up needs, rent if using space, business supplies, insurance, rental deposits, and operating expenses). (See The Financial Plan Section of the Business Plan for a list of "typical" start-up and operating expenses.)
Are your franchise territories exclusive? (i.e. will a franchisee run the risk of having another of your franchises open "close" to theirs?)
They are exclusive for marketing purposes which we call a defined marketing territory. Franchisees are permitted to work with clients in any territory and this usually happens because of an existing relationship with that client, but they are not free to do any direct marketing in someone else's territory.
Describe the ideal franchisee for a Murphy Business Canada franchise.
The ideal franchisee is someone with direct experience running a business or experience in senior level management. The ability to work with numbers is essential.
In a perfect world, the individual will have a real estate license, because it is a requirement for business brokers in many Canadian jurisdictions. We would also welcome individuals who are existing business brokers who want to become part of a North American network and brand.
About Murphy Business Canada Franchise Financing
The financing programs this Canadian franchise offers focus on the franchise fee.
A franchise financing program for new franchisees lets them stretch out the payments on the franchise fee. With a $15,000 down payment, the remainder of the $35,000 doesn’t become due until revenue from the business reaches a benchmark.
Murphy Business Canada also offers a conversion program aimed at business brokers already in business which foregoes $20,000 in franchise fees.
Both of these programs are intended as one-time assistance. After that, the franchisees should be able to maintain their responsibilities. We give them a boost so they can build solid momentum to meet their required fees down the road.
Murphy Business is a lower cost franchise opportunity - there are no bricks and mortar requirements. So unlike typical brick and mortar franchises, we're not asking them to make equipment upgrades and other high priced investments.
Our financing programs help people by providing more manageable terms for the initial fee.
To learn more about becoming a Murphy Business Canada franchisee, visit the Franchise Opportunity section of their website.
Another Canadian franchise that offers franchise financing: Instant Imprints Canada