Will A Franchise Increase Your Income? The Truth About Franchising!

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Can You Become Wealthy Off of Franchise Income?

While doing research on franchise income opportunites I came to realize that buying and owning a franchise is much more expensive and time consuming than one can ever imagine. If Your Goal Is To Become Financially Free...A Franchise May Not Be The Best Way To Go..

Will A Franchise Increase Your Income?

The Reality of Franchise Income.. 

According to a study by Dr. Timothy Bates, a professor at Wayne State University in Detroit, found that the franchise failure rate actually exceeded 30 percent and that franchises made lower profits than independent entrepreneurs. Dr. Bates' study also found that the average capital investment of franchisees was $500,000 compared to $100,000 for independent entrepreneurs. Many franchisees never make much money. Average profitability is poor, especially after taking into account the purchase price of the franchise. So take the hype used to sell franchises with a big pinch of salt!

Will A Franchise Increase Your Income?

Check Out Some Top Franchise Investment Requirements!! 

McDonalds
Investment
- Total Investment: $506K-1.63MM
Fees
- Initial Franchise Fee: $45K
- On-Going Royalty: 12.5%
- Advertising Fee: 4%

Quiznos Subs
Investment
- Minimum Net Worth: $125K
- Cash Investment: $70K
- Total Investment: $193-257K
Fees
- Initial Franchise Fee: $25K
- On-Going Royalty: 7%
- Advertising Fee: 4%

Baskin Robbins - 31 Flavors
Investment
- Minimum Net Worth: $400K/Unit
- Cash Investment: $145.8-527.8K
- Total Investment: $145.7-527.8K
Fees
- Initial Franchise Fee: $40K
- Average Franchise Fee: $40K
- On-Going Royalty: 5-5.9%
Advertising Fee: 5%

Will A Franchise Increase Your Income?

My Franchise Experience!! 

As A Former Franchisee..

I have experienced many of the common problems associated with starting and owning a franchise.

Starting the franchise was a long and expensive process. The start up fees were close to $350K. I had to borrow from family and take out a business loan. By the time we opened the doors it had been well over a year.

After opening the doors my expenses (payroll, advertising, rent, electricity, franchise fees, etc.) exceeded my gross revenue, leaving me unable to pay myself. I was working 80+ hours a week with no income. After 6 months of falling further into debt I was forced to take out a personal loan to pay my living expenses.

I was eventually forced to foreclose on my franchise and take a huge financial loss.

Since this experience I have discovered the Direct Sales Industy. With Direct Sales I keep 70% of my income compared to 20%-30% usually experienced with traditional franchise businesses. This is possible due to low overhead costs. I have no employees, rent, or franchise fees. All I need is my computer, phone, and an internet connection. This Business has allowed me to work 3-4 hrs/ day, given me freedom to spend with friends and family, and allowed me to enjoy a high income lifestyle.

Will A Franchise Increase Your Income?

The Truth About Franchising! Know All Your Options!! 

Why I went from owning 2 different franchises in 2 completely different industries to the direct sales industry...

WhyStartAFranchise?
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Tell Me What You Think... Will A Franchise Increase Your Income??? 

Lensmaster

ConnerCJ wrote...

Not all franchises are losing propositions. The comments here lead me to believe that you entered the franchise agreement under-capitalized. That is the fault of the franchisor for not giving you the guidance on what was acceptable. In good franchise systems the franchisor should be extremely critical of who is accepted and who is turned away. You can figure this out pretty quickly after interviewing the franchise organization.

ReplyPosted May 25, 2009

Lensmaster

AlfonsoAlvarez wrote...

Hey great info Elena. Thank you for the informative lens!

ReplyPosted January 15, 2009

Lensmaster

TurnKey_Venture wrote...

Starting a business is HUGE! So much to look at and decide upon.

Checkout this lens on starting a business. It give you good books, entrepreneurial mindset videos, google tips and website stuff. Well rounded free info.

Thanks again for the great lens!

Leah
Marketing Platforms of Learning

ReplyPosted September 24, 2008

Lensmaster

DBird wrote...

I like your ideas here.

You can get access to my Attraction Marketing Training by signing up for my free newsletter. You'll be blown away at all the knowledge, tools and resources I'm just giving away.

ReplyPosted September 22, 2008

Lensmaster

BFuniv.com wrote...

The best way to make big money from a franchise is to start your own business, get it very organized, and then sell franchises to others.

ReplyPosted August 25, 2008

 
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