Franchises Under $5,000, Is There Such A Thing?!?

A franchise, by definition, is a legal and commercial relationship between the owner of a trademark, trade name or or advertising symbol and an individual or group wishing to use that same identification for business.

This definition basically sums up why franchises are so popular.

They already are branded and make money!

This is exactly why so many people start a business using this model. They know that they have brand awareness, a franchise is profitable and all the systems are already in place.

What most of these people also see in a franchise is high start-up costs. Some just can't swing hundreds of thousands of dollars.

Let's dig a little deeper into this definition of franchise. Here are some other key terms you will need to know.

Franchiser- The person selling the franchise. This person exercises significant control of the franchise according to geographic region.

Franchisee- The person who buys the franchise. This person sells the goods and services and operates under the franchiser's mark.

So if you'll notice here, YOU really don't have total ownership or control over the franchise. The franchiser is the boss, you are just running one of his or her franchises. Also the franchiser has ultimate control and can modify the franchise when deemed necessary.

A percentage of your profit, depending on franchise, will go directly to you franchiser. You will make sigficant profit, due to your efforts, however you must remember that the profit is not all of yours. It may also take many months and up to years in order to see a profit.

So I think you get the general idea about franchises. There is much more involved, but that is all you really need to know for now.

Yes friends, that right, I said it. Internet Business!

More millionaires are made over night because of the internet than any where else. Sure millionaires are created offline, but the leverage and speed at which this happens online is amazing.

A business on the internet could consist of an already existing offline business, internet marketing business or a home based business working alongside a company selling goods and services. All variations can be and are quite lucrative.

It's been said in the past that some businesses online are like franchises, but cost 90% less. This is true in many ways. You can sign up with a business, jump in at a low entry fee and use a companies brand and income potential to begin making money. And this doesn't happen in years accompanied by a decreased profit realization. No my friends, this can happen with days, weeks and months!

To be profitable and ultimately wealthy you need leverage. Leverage is the use of people, technology and other resources to increase you productivity in the same amount of time. The internet provides huge amount of leverage. This is how so many people become rich so quickly. They set up so many different web sites, along with marketing strategies that work 24 hours a day, 365 days a year.

For example look at Amazon.com. They are one of the number one drop ship retailers online. People can buy from Amazon any time of the day and any day of the year! Don't you think that the leverage of the internet is playing a significant role in the success of this company? They also know how to market and have competitive prices. For more information on how Amazon is so successful click here: Amazon Story

Pros

-Brand Awareness Is Already Established

-System Is Already There

Cons

-Long hours (must work the same hours)

-High Start-up Costs

-Inventory

-Overhead Costs

-Training the Staff

- Payroll

- Not Profitable Immediately (Years+)

-Have To Pay % Of Profits To Franchiser

Pros

- Low start up costs (<$5,000)

- Be your own boss

- Leverage

- Start making money immediately

- Unlimited profit potential

- Work your own hours

- No over head

- No employees

Cons

- Learning curve