15 Nov A Successful Franchise Below the Radar: The Murphy Business Franchise
Recently I interviewed Roger Murphy the founder of Murphy Business and Financial Corporation. Franchising since 2006, Murphy Business and Financial Corporation franchise has become a successful operation with 127 franchisees.
Every so often I become aware of a successful franchise that is under the radar. I can probably attribute this to the fact that most of the franchise news is focused on the giant franchises, the fast growing franchises and franchise litigation. After learning about the Murphy Business & Financial Corporation franchise I wanted to speak with its founder Roger Murphy. Having experience in both the franchising and business brokerage industry, I wanted to learn more about their franchise program.
In March of 1994, Roger Murphy started his company and it grew to thirty branch offices with over fifty broker/agents in Florida.
The company began its franchise program in 2006 with twenty six of the original offices converted to franchises. Since that time, the network has grown to 127 franchisees.
“The concept of the newly formed franchise was to provide the franchisees with “first class” back office support, comprehensive training, ongoing support from both a local and national level, and the best tools and resources available in the industry.
FKH: Roger, what services do the franchisees provide?
“Our franchisees have a menu of services they can market and provide to clients including; business brokerage, mergers and acquisitions, commercial real estate brokerage, franchise sales and business valuation/equipment appraisal. We have staff in our home office with expertise in business valuation, mergers and acquisitions, business brokerage of course, commercial real estate, machinery and equipment valuation and franchise sales…I call them my product champions. They truly give our franchisees the support they need to be successful.”
FKH: I’m fascinated by the equipment and machinery valuation product. How does that work?
“The Machinery and Equipment Appraisal and Brokerage Services-Division of Murphy Valuation Services, Inc. provide comprehensive appraisals of machinery and equipment for mergers and acquisitions, divorce settlements, estate settlement, loans, foreclosures, partnership dissolution, insurance purposes, litigation support, buy-out agreements, trust and retirement planning, converting from a C to an S Corporation, etc. As part of the appraisal service we also offer the option to broker machinery and equipment for our clients.”
FKH: What other services do you provide the franchisees?
“We provide a state-of-the-art direct mailing program, mail merging, list selection, printing, folding, signing and a selection of marketing material to choose from. Also an in-house telemarketing department that assists franchise owners in generating lead activity.
FKH: How do you define a franchise territory and are they exclusive?
“Each territory consists of approximately 5,000 salable businesses based upon an analysis of the type of businesses and we eliminate those businesses that are not saleable. Since a franchisee may have prior relationships or has a particular business niche, franchisees have a non-exclusive territory. However, we discourage franchisees from actively marketing into another franchisee territory and we monitor this activity.”
FKH: How does the Murphy Financial and Business Corporation franchise deal with competitors?
“We try to do the best job and take the high road by providing the most comprehensive package available. This includes our business valuation services and other back office support programs that clearly differentiate us, especially when it comes to marketing support. Back office, other services, lead generation plus we know how to market. Our lead generation – the BLS system is a huge advantage – it taps into multiple online listing sources, more than most, and most importantly, we never discourage co-brokering, it is a big part of success – we work together as a team throughout the entire system.”
Since starting in 2006 and growing to 127 franchisees the Murphy Financial and Business Corporation franchise has the enviable distinction of having no franchisor litigation reported on its FDD
The royalty is 10 percent of the franchisees revenues. In a business brokerage environment revenues would include brokerage commissions and fees for other services. There is no advertising fund.
- A Single Unit Location Estimated Initial Investment is $35,000 to $49,000 (the amount of the franchise fee depends on the size of the territory) Additional $12,000 fee for the Basic Quick Start Marketing Program or $15,000 for the Enhanced Quick Start Marketing Program. We estimate that a Franchisee’s initial investment for the single unit will be $61,550 to $128,700. See items 5, 6 and 7 of the FDD regarding the initial fees and other fees.
- Regional Developer Estimated Initial Investment is $75,000 to $150,000 Additional $15,000 fee for the Regional Quick Start Marketing Program. We estimate that a Regional Developer’s initial investment for the single unit will be $111,700 to $240,200.
The Murphy Business and Financial Corporation franchise provides its franchisees an opportunity to market a variety of services. With a record of solid growth and no franchise litigation this franchise has definitely made its mark in an assuming way. All indications point to continued success for this outstanding franchise opportunity.