Servpro and Service Master offices

[boazcan]

How do the territory rules work (generally speaking) when 2 or more of the same franchise are operating in one city?

What happens if you work outside of your "territory"?

 

[gquante]

Usually they assign franchises zip codes and they can ONLY advertise in the zip codes in their area. But a customer can call any franchise they want for any service they can’t stop a franchise from crossing into someone else’s territory.

 

[Ed]

Greg has it pretty much right. It's actually a real sore spot for franchises who share territories, or operate in the same are as other franchises. You can only market in your assigned zip codes, but as Greg said, you can work anywhere as long as the work is referred to you, or the customer calls you and you didn't openly solicit or market in a territory that's not yours. Where it gets gray is an agent may be in your territory, but if they write policies in a territory bordering yours, the owner of that bordering territory can market to that agent in your territory. The bordering franchise is supposed to inform the agent that they can only accept jobs in their territory, but that doesn't always happen. We do not market to agents outside our territory, even though there are many that are outside my territory and write in my territory. The sad reality is that there are a lot of franchises that blatantly disregard the rules and market to whomever they please. I'm lucky, we are in a rural area and serve 3 counties exclusively. We still get other ServiceMasters coming in here though.

 

[juniorc82]

service master also has differant franshises available for purchase. for example their are 2 differant service masters in my area. one for disaster restoration and one for cleaning. I have even heard that service master sells janitorial franchises

 

[joeynbgky]

U can buy a janitorial one for 10k. They were selling them on ebay

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[Ed]

Yes SM does offer different service lines. We own 4 franchises and all service lines, but only do disaster restoration.

$10,000 for a Janitorial franchise? Maybe that was an individual selling that, but I think if you buy from SM, it's at least twice that. The minimum down payment for a janitorial franchise is over $8500. Disaster restoration franchises are around $50,000 I think. Any sales of existing franchises have to be approved by SM and I have heard they can be much more stringent on approval of re-sales than initial sales.