House construction with a franchise company??

  • Erstellt am 2010-09-21 22:12:12

Faktus2010

2010-09-21 22:12:12
  • #1
Hello! Does anyone have experience with franchise companies?! We have a "good" offer from a Dipl.Ing.Architekten who probably works through a franchise. We are a bit skeptical because we lack references... only many planning offers on the internet. What do you think?!?
 

Bauexperte

2010-09-22 10:12:51
  • #2
Hello,


First of all, some basics:

There is no architect who builds by himself unless he owns a construction company and therefore has permanently employed craftsmen for all relevant trades involved in house construction. Usually, they work with crafts businesses familiar to them, starting with the shell construction and ending with the finishing trades such as tiles, for example. The model you described is rather unlikely since franchisers, at least the reputable ones – with few exceptions – have their own architects; the assumption here is that over the years, a cooperation between franchiser and architect has grown, which does not necessarily mean something bad in advance.

Topic franchiser – there is hardly any company working nationwide that does not work with franchisers. Despite all the skepticism, this business model – provided that the franchisegiver is a reputable provider – represents a useful service for the homebuyer, who is usually completely overwhelmed with the topic of building a house. The healthy companies in the industry, therefore – exceptions confirm the rule – do not appear negatively in this or other forums.

The dangers of this business model arise – also with few exceptions – from the approach of those homebuyers who focus solely on price and not on a balanced price/performance ratio. As in every industry, there are so-called "black sheep" in the prefabricated or solid house construction market who specifically target the type "stingy is cool" homebuyer. Their salespeople confirm potential homebuyers in their assumption that EVERYTHING can be obtained more cheaply; in the end – and that is the problem in construction – this wishful thinking levels out to a normal level, because even the most frugal builder doesn’t get anything for free anywhere.

It is therefore important for every homebuyer to decide in advance what he wants:

is constant support by an architect important to him (keeping in mind that not all architects offer a fixed price quote)
is it rather the smaller, but local construction company
does he want (can he) give contracts and coordinate all trades himself (for this too an architect is needed)
or is the choice rather on a franchiser who works nationwide.

The crux is to make the right choice for the homebuyer in each case. For this, there are – besides this forum and others – numerous possibilities to make a choice tailored to personal needs, since the models mentioned above yield different amounts for mostly different services; ultimately the budget and the personal gut feeling decide. As long as the homebuyer internalizes that every service requires its price, he will hardly "fall on his stomach," regardless of which variant he chooses; the driving force should not be "cheap" but "good value."

Best regards
 

K-BN

2010-10-19 00:07:57
  • #3
Hello,

I would like to start here with my questions:

1. Which franchisees can be considered solid and affordable, so they are not on the level of Town & Country? But they should also not belong to the high-priced ones like Viebrockhaus. Viebrockhaus already has its prices...

2. And above all, I have unfortunately been asking myself for some time how to find regional construction companies in the Cologne-Bonn area that build almost turnkey?

3. Does it make a price difference between building "turnkey" and "self-coordinated"? With self-coordination of the trades, you can look around among regional craftsmen and choose your local partners. Maybe this also allows for certain personal contributions to be better incorporated, but presumably, it makes no difference.

Regards K-BN
 

Bauexperte

2010-10-19 12:41:57
  • #4
Hello,


I have already referred to the well-known forums in the last paragraph of the previous post; another option is to visit new development areas and ask the homeowners there about their experiences with their providers. I only partly trust the consumer advice centers because their management plans too much at the “green” table, which rarely can be implemented in reality; however, they find out in a timely manner if there are discrepancies with providers of various construction methods => barometer.


As described in the first paragraph. I also don’t see why reputable regional construction companies should refuse to accommodate the wishes of potential homeowners who do not want to purchase the complete offer. Of course, it always depends on what you understand by “almost turnkey.” If you don’t find anything, you can gladly email me and we can discuss your land register excerpt, development plan, and written stipulations without obligation.


A clear “yes and no.” If you want to assign the trades for the interior finishing yourself after the closed shell – I wouldn’t go below that – this requires a lot of basic knowledge and above all time – also, a well-trained construction manager must not be missing; alternatively, the involvement of a sworn expert is recommended. The savings depend crucially on the desired standard and the ability to detect construction errors at an early stage.

Whatever you decide, one thing should stand at the top for all available options: the conversation with your house bank regarding the creditworthiness check of the craftsmen/the preferred provider to be commissioned, if you decide to go mainly turnkey.

Kind regards
 

wabe

2010-10-19 15:57:24
  • #5
A franchise system is definitely a serious matter, but of course it always depends on the individual partners. The biggest problem I see is the quite varying quality of the franchisees, so that in one region you can encounter a very solid and capable partner, and in another region someone with whom it is better not to do business.
 

K-BN

2010-10-20 23:22:30
  • #6
Hello!

@wabe:
That's exactly what I mean, even if a franchisor has a pretty good reputation, it can lead to an extremely poor choice in certain regions due to the different franchisees. That is my problem, finding this out in my region. ;)

@Bauexperte:

But is the assumption that if nothing is said about a general contractor/construction company in the relevant forums, it is dangerous as long as it is not a nationwide company? Smaller companies probably do not appear so quickly in internet forums.


First of all, thank you very much for your offer, maybe I'll get back to it.
I believe I also did not express myself clearly enough with the term "almost turnkey". I meant a company (franchisee or general contractor or construction company) that builds the house completely including most trades. I would do "partial services" myself besides wallpapering and flooring (outside the bathroom), like possibly laying empty conduits for the electrical system and possibly pulling the cables, installing electric roller shutter motors, installing an alarm system and integrating the necessary wiring into the raw construction before the walls are plastered, etc. Most of the companies I have talked to usually do not exclude the possibility of providing own services. It then needs to be considered whether the granted "price reduction" is appropriate.
I just wonder how I find local (I think I should have said general contractors instead of construction companies) that build turnkey and work at a reasonable price and with proper quality. You read a lot about supraregional franchisees, but finding smaller local providers seems somewhat more difficult to me.


So could this really be done sensibly only with an architect who at least creates the tenders? Requesting offers and selecting as well as coordinating the internal trades could then be done oneself? The detailed checking of the construction execution would then have to be clarified by the architect; rough error checks would presumably be possible on my part. Possible savings through the selection of individual craftsmen would therefore probably be quite low.



Thanks, I will keep that in mind.

You seem to be quite familiar with what is going on in the Rhineland, maybe you have a few suggestions/warnings regarding franchisors and their franchisees in the Cologne-Bonn area in the mid-price range? And regarding local providers for turnkey construction? Gladly also by PM.

Best regards
K-BN
 

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