In 1900, the Michelin brothers published the very first Michelin Guide. At the time, they were running a tyre company, and the guide was a clever attempt to drive more business their way—literally. The idea was to encourage people to travel by car, wearing out their tyres and needing replacements. The guide included maps, instructions for tyre repairs, and listings for hotels, restaurants, mechanics, and petrol stations across France. It was a brilliant strategy, and they initially gave away 35,000 copies.

However, the guide only did moderately well at first. It wasn’t until 1920 that things started to change. André Michelin noticed one of the guides being used to prop up a workbench in a garage, and he had a revelation: “Man only truly respects what he pays for.” He decided to start charging 7 francs for the guide, which marked the beginning of its transformation into the prestigious brand it is today.

By 1920, the dining section of the Michelin Guide had become so popular that the company began appointing anonymous inspectors to visit and grade hotels and restaurants. In 1926, the Michelin star system was introduced, and by 1931, the guide’s distinctive red cover was established. The star system was expanded to include three categories:

• 1 star: “A very good restaurant in its own category.”
• 2 stars: “Excellent cooking; worth a detour.”
• 3 stars: “Exceptional cuisine; worth a special trip.”

So, What Does This Have to Do with a Franchise? Stay with me.

Let’s talk about franchise fees. Our buy-in cost of £7,500 might seem like one of the higher initial payments around, but there’s a reason behind it. After paying this initial fee, you’ll repay the rest of the fee in monthly instalments—a system we introduced after COVID-19, when banks were hesitant to lend. What hasn’t changed is our commitment to ensuring a two-way partnership, where we ask the right questions to make sure the partnership has the potential for success.

Charging £7,500 upfront serves a purpose: it ensures that those who join us are serious about their decision. It prompts people to consider whether this is truly what they want to do because we’re looking for long-term partners, not just anyone who can pay the fee. We’ve built a business that demands a lot from our head office team for every single franchisee that joins. For example, we offer one-to-one training, which is far more intensive than training 15 or 20 people at once.

If we opted for mass training sessions, we wouldn’t have to worry as much about bringing the right people on board—the “cost of investment” from our side would be 20 times lower. But that would also mean that the value of our proposition would diminish. Our franchisees wouldn’t perform as well, and the business would suffer as a result.

By setting up this system, we ensure that when people join us, they’re fully committed and ready to build a business for their future. As a result, our franchisees are hard-working, driven individuals with great self-confidence—qualities that lead to successful businesses. And in turn, we earn our revenue through a simple 2% fee.

The 2% Fee: How It Works

Our fee is a straightforward 2% of your total revenue. For example, on a £5,000 booking, we would take £100. On average, we earn a 14% commission on a holiday booking, which means the total commission would be £700. Out of this, you would keep £600, and we would take £100.

Let’s break this down further using different sales figures and compare how much more you would earn with us compared to our competitors.

Your Earnings with Us

• £100,000 in sales (approximately 20 bookings, or less than one per fortnight over a year):
  • Total Commission (14%): £14,000
  • Your Earnings (after 2% fee): £12,000
  • Our Fee: £2,000

• £1,000,000 in sales (approximately 200 bookings, or about four per week over a year):
  • Total Commission (14%): £140,000
  • Your Earnings (after 2% fee): £120,000
  • Our Fee: £20,000

• £10,000,000 in sales over 4 years (approximately 2,000 bookings, or about 500 bookings per year):
  • Total Commission (14%): £1,400,000
  • Your Earnings (after 2% fee): £1,200,000
  • Our Fee: £200,000

Competitor Comparisons (Based on Commission Splits)

Competitor A: 50/50 Split of Commission

• £100,000 in sales (20 bookings):
  • Total Commission: £14,000
  • Your Earnings: £7,000
  • Their Earnings: £7,000
  • With Us, You Earn: £5,000 more

• £1,000,000 in sales (200 bookings):
  • Total Commission: £140,000
  • Your Earnings: £70,000
  • Their Earnings: £70,000
  • With Us, You Earn: £50,000 more

• £10,000,000 in sales over 4 years (2,000 bookings):
  • Total Commission: £1,400,000
  • Your Earnings: £700,000
  • Their Earnings: £700,000
  • With Us, You Earn: £500,000 more

Competitor B: 60/40 Split of Commission

• £100,000 in sales (20 bookings):
  • Total Commission: £14,000
  • Your Earnings: £8,400
  • Their Earnings: £5,600
  • With Us, You Earn: £3,600 more

• £1,000,000 in sales (200 bookings):
  • Total Commission: £140,000
  • Your Earnings: £84,000
  • Their Earnings: £56,000
  • With Us, You Earn: £36,000 more

• £10,000,000 in sales over 4 years (2,000 bookings):
  • Total Commission: £1,400,000
  • Your Earnings: £840,000
  • Their Earnings: £560,000
  • With Us, You Earn: £360,000 more

Competitor C: 70/30 Split of Commission

• £100,000 in sales (20 bookings):
  • Total Commission: £14,000
  • Your Earnings: £9,800
  • Their Earnings: £4,200
  • With Us, You Earn: £2,200 more

• £1,000,000 in sales (200 bookings):
  • Total Commission: £140,000
  • Your Earnings: £98,000
  • Their Earnings: £42,000
  • With Us, You Earn: £22,000 more

• £10,000,000 in sales over 4 years (2,000 bookings):
  • Total Commission: £1,400,000
  • Your Earnings: £980,000
  • Their Earnings: £420,000
  • With Us, You Earn: £220,000 more

Summary

As these figures clearly show, partnering with us means significantly higher earnings compared to the typical commission splits offered by our competitors. For example, with 200 bookings a year (around four per week), you could earn an additional £50,000 with us compared to a 50/50 split with Competitor A, or an extra £22,000 compared to a 70/30 split with Competitor C.

Our 2% revenue fee ensures that the more you sell, the more you keep in your pocket, making our model not just rewarding but also fair and transparent. This approach allows you to truly benefit from your hard work, without sacrificing a large portion of your earnings.

The Key to Success

When you’re buying into a business, it’s crucial to think long-term, not just about the initial weeks. Look beyond flashy marketing and endless promises, and choose a partner who ensures you keep your fair share. Just like Michelin, we believe that the value of what you pay for can make all the difference in your success.