tim
Member
- Joined
- Jan 16, 2007
- Messages
- 544
Anyone here know about this company or have educated input?
Rainbow international
- Thread starter tim
- Start date
dealtimeman
Everyday is Saturday.
from what i have heard they are a good company that really want you to suceed. went down with jondon to their flood house at their corp site and they were good people to me.
steve g
Member
I started out in '95 working for rainbow in waco texas which also happens to be where the franchise headquarters is located. I think the royalty is like 10% of the gross nowadays, which IMO is one hell of a lot of money for what you get. remember that is 10% before any expense is paid, so they are likely getting about 1/3rd of your profit at the end of the day. they don't have the name recognition to command that kind of money IMO, the way I look at it is what is the name alone going to get me in business, if you buy a mcdonalds just having a mcdonalds guarantees a certain amount of business. if you bought a service master or stanley steemer again those have a much much greater name recognition and service master has alot of national insurance accounts, again its how much money is just owning the franchise going to get me. that is how you determine value.
in the end rainbow is going to provide training via marketing and technical as well as on going support for each, could you get some of that right here at mikeysboard??? you bet you could and free I might add. the point is you could get all the training and support for a tiny fraction of what they charge. you would not owe a royalty fee of 1/3 of your profit, you would not have some other organization telling you how you must run your business and you would be free to do whatever you wanted.
if I really wanted to go the franchise route I would check out service master or serv pro, however if I already had a somewhat successful business I think you are crazy to think paying these guys a bunch of money is a good idea. if you are starting from scratch is the only way I would consider it.
in the end rainbow is going to provide training via marketing and technical as well as on going support for each, could you get some of that right here at mikeysboard??? you bet you could and free I might add. the point is you could get all the training and support for a tiny fraction of what they charge. you would not owe a royalty fee of 1/3 of your profit, you would not have some other organization telling you how you must run your business and you would be free to do whatever you wanted.
if I really wanted to go the franchise route I would check out service master or serv pro, however if I already had a somewhat successful business I think you are crazy to think paying these guys a bunch of money is a good idea. if you are starting from scratch is the only way I would consider it.
RestorePro
Member
- Joined
- Apr 25, 2007
- Messages
- 19
Actually, the royalty fee is based on a graduated scale. The more you do in dollar volume, the less the royalty % is. They also have a "roll in" program where you get a discounted royalty base, as well as deeply discounted territory purchase. The amount of your discounts depends on the amount of your existing business.
Servepro and Servicemaster both seem to be hit or miss when it comes to the individual franchises with Servepro being more of a miss at least in my area. Sure you get lots of name recognition, but sometimes that is not a good thing. Rainbow International are promoters of everyone being trained in the same system, everyone following the same system, and they require their franchises to be a few notches above everyone else when it comes to quality and customer service.
I have been in the restoration industry since 1989, incorporated my own business in 2004, and have averaged over 1 million in sales for the last 3 years. I started looking at franchises several years ago due to the vendor program trend that almost all insurance companies are going toward. After researching any of them I was interested in, and meeting with several of them in person, it was clear that Rainbow International was the only one that I was interested in having my name associated with. It took me over a year after I first spoke with them to make my decision, but they never once pressured me or harassed me.
I have already identified enough savings through their vendor program to pay for my royalty fees. I am saving over 10k on my polution insurance alone as my previous agent had me buying the wrong type policy. Their insurance vendor also understands what it is that my technicians do so I can be properly charged for my workers comp. I will save about 7k there as well. There are many other vendors in their network who can save you money.
Another huge plus is the fact that they make all kinds of coaches available to you. They teach you how to know if you are making a profit, they help you institute a proven marketing plan, train you in how to deal with your employees, how to find new employees, and the list goes on and on.
I guess my point before I started rambling would be to go see them in person to get the correct info. Asking a bunch of strangers their opinion of something that they may not have researched or seen in person, will only do you a huge disservice IMHO. If someone from Rainbow has contacted you already, accept their offer to come look at it in person. They will not let you make a decision while you are there, but they will make sure you have all the correct information. If you have not spoken to anyone yet, PM me and I will get you someone's name and number. (No I do not get anything out of it)
Good Luck,
Mark Woodruff
Servepro and Servicemaster both seem to be hit or miss when it comes to the individual franchises with Servepro being more of a miss at least in my area. Sure you get lots of name recognition, but sometimes that is not a good thing. Rainbow International are promoters of everyone being trained in the same system, everyone following the same system, and they require their franchises to be a few notches above everyone else when it comes to quality and customer service.
I have been in the restoration industry since 1989, incorporated my own business in 2004, and have averaged over 1 million in sales for the last 3 years. I started looking at franchises several years ago due to the vendor program trend that almost all insurance companies are going toward. After researching any of them I was interested in, and meeting with several of them in person, it was clear that Rainbow International was the only one that I was interested in having my name associated with. It took me over a year after I first spoke with them to make my decision, but they never once pressured me or harassed me.
I have already identified enough savings through their vendor program to pay for my royalty fees. I am saving over 10k on my polution insurance alone as my previous agent had me buying the wrong type policy. Their insurance vendor also understands what it is that my technicians do so I can be properly charged for my workers comp. I will save about 7k there as well. There are many other vendors in their network who can save you money.
Another huge plus is the fact that they make all kinds of coaches available to you. They teach you how to know if you are making a profit, they help you institute a proven marketing plan, train you in how to deal with your employees, how to find new employees, and the list goes on and on.
I guess my point before I started rambling would be to go see them in person to get the correct info. Asking a bunch of strangers their opinion of something that they may not have researched or seen in person, will only do you a huge disservice IMHO. If someone from Rainbow has contacted you already, accept their offer to come look at it in person. They will not let you make a decision while you are there, but they will make sure you have all the correct information. If you have not spoken to anyone yet, PM me and I will get you someone's name and number. (No I do not get anything out of it)
Good Luck,
Mark Woodruff
dealtimeman
Everyday is Saturday.
they treated me well when i was down in waco and jondon was the one who invited me not rainbow. i will say two of the franchises in my area are doing very very well. well enough to buy four new box trucks just to have the big truck appeal and of which three have truck mounts and one is just for equipment. the owner had previous experience but just wanted to grow faster. and he did
also rainbow is on a couple if not more insurance vender programs from what i hear.
also rainbow is on a couple if not more insurance vender programs from what i hear.
steve g
Member
funny how some see it differently when I worked for the franchise that was located in waco texas. they didn't do anything like what mark says they did. the vendor programs are a way to die by a thousands cuts because the insurance companies are always wanting cheaper and cheaper prices.
what if instead of paying franchise fees you put that money into a dedicated marketing person that targeted the good insurance companies and went after other sources of restoration work that allowed you to charge FULL price. do that and do things to get the work direct from the customer, again full price work. I can't imagine any person who is successful already joining up with rainbow and thinking they are going to magically make you that much better. if rainbow was so great I would be one. they used to have a rainbow in the salt lake area but one day the owner got tired of paying royalties and fees, went outside and took the w off his van now he is rainbo. the headquarters didn't do anything about it, you would think a company that is all that would police things a little better, don't count on territories to be defended.
the point I am making is yeah rainbow has a system, yeah they have training and tech support. but they don't have name recognition to the average joe on the street. so your still left pimping that part of your business. IMO the training tech support marketing etc, can be had easily via other sources in our industry for a fraction of what rainbow is going to charge and you are not under the limits of the franchise agreement and your not paying a royalty to get it.
what became of the code blue program I haven't heard about it in years.
what if instead of paying franchise fees you put that money into a dedicated marketing person that targeted the good insurance companies and went after other sources of restoration work that allowed you to charge FULL price. do that and do things to get the work direct from the customer, again full price work. I can't imagine any person who is successful already joining up with rainbow and thinking they are going to magically make you that much better. if rainbow was so great I would be one. they used to have a rainbow in the salt lake area but one day the owner got tired of paying royalties and fees, went outside and took the w off his van now he is rainbo. the headquarters didn't do anything about it, you would think a company that is all that would police things a little better, don't count on territories to be defended.
the point I am making is yeah rainbow has a system, yeah they have training and tech support. but they don't have name recognition to the average joe on the street. so your still left pimping that part of your business. IMO the training tech support marketing etc, can be had easily via other sources in our industry for a fraction of what rainbow is going to charge and you are not under the limits of the franchise agreement and your not paying a royalty to get it.
what became of the code blue program I haven't heard about it in years.
RestorePro
Member
- Joined
- Apr 25, 2007
- Messages
- 19
Code Blue is still out there, but I hear it is a nightmare. I have no personal experience with it, but I have a friend who got screwed on a major ES.
The franchise deal is not for everyone, no doubt about it. It has just been in the last 3 or 4 years that Rainbow has made a huge effort to enter the restoration field. They have risen to the #1 choice of the Liberty Mutual program for water mitigation, and just recently inked a deal with Liberty Mutual to provide smoke cleaning, packouts, and contents restoration. There are only 2 vendors on Liberty's new fire program, Rainbow and Servicemaster. Knowing how many fire claims Liberty averages in my area, that could be very huge when the program gets rolling.
I will say that I did NOT sign with Rainbow for the national account work. I see the continuing trend toward the program work, and if my bread and butter companies ever go to the dark side, I have to be prepared. It was more of a "hedge on my bets" if you will. Anyone who joins any national franchise for the sole purpose of getting the national account work is very foolish. You have to know that you are able to generate enough sales without assistance, so any program generated work is just gravy. I believe there are some out there who could not survive without their corporate offices feeding them program work. I would hate to be in their shoes if their franchises ever get kicked out of the respective program.
Do you miss Waco Steve? It was 100 degrees last time I was there LOL
Mark Woodruff
The franchise deal is not for everyone, no doubt about it. It has just been in the last 3 or 4 years that Rainbow has made a huge effort to enter the restoration field. They have risen to the #1 choice of the Liberty Mutual program for water mitigation, and just recently inked a deal with Liberty Mutual to provide smoke cleaning, packouts, and contents restoration. There are only 2 vendors on Liberty's new fire program, Rainbow and Servicemaster. Knowing how many fire claims Liberty averages in my area, that could be very huge when the program gets rolling.
I will say that I did NOT sign with Rainbow for the national account work. I see the continuing trend toward the program work, and if my bread and butter companies ever go to the dark side, I have to be prepared. It was more of a "hedge on my bets" if you will. Anyone who joins any national franchise for the sole purpose of getting the national account work is very foolish. You have to know that you are able to generate enough sales without assistance, so any program generated work is just gravy. I believe there are some out there who could not survive without their corporate offices feeding them program work. I would hate to be in their shoes if their franchises ever get kicked out of the respective program.
Do you miss Waco Steve? It was 100 degrees last time I was there LOL
Mark Woodruff
steve g
Member
RestorePro said:
it took a few years to get texas off my mind, I will always be a texan, but I would never move back, it would take an obscene amount of money with like 2 mos vacation a year for me to do it. there is just too many fun things to do in utah, the mountains, hunting, flyfishing and all the outdoor activities around here make me not have even an inkling to go back. THERE IS NO PUBLIC LAND IN TEXAS, no trout to be caught in some lonely mountain stream with world class scenery, no mule deer protected by a higher power under some rock ledge at over 11000 feet elevation, no wild bull elk, no pheasants, no high deserts that you can jump out of your truck and unload a magazine of ammo or call a coyote, without paying or knowing someone. now why would I miss texas??? aside from people and food thats all texas has in its favor.
