Question

What are the long-term prospects for owning the franchise you researched? Can you make an equivalent amount of net income compared to starting your own business?

Answer 1

Below are some possible long-term outcomes that can happen as the result of becoming the owner of a franchise business.

Possible Outcomes in Franchise Ownership

1. You Could End Up Building a Lot of Wealth

Most of the wealth in franchising comes by way of multi-unit ownership

Fact: Multi-unit franchisees control 55% of all franchised units in the U.S.

Multi-unit franchise ownership involves choosing a franchise concept, and a franchisor, that encourages multi-unit ownership.

As a matter of fact some concepts, especially ones in the food sector, require new franchisees to sign multi-unit franchise agreements. These agreements may be for 3, 5, even 10 franchise units. There’s usually a development schedule set up that franchisees must adhere to. For example, franchisees may have to commit to opening one new unit every 18 months.

Multi-unit franchise ownership can be quite a wealth creator. It’s simple math. If you own 10 franchise units each doing $1 million in annual sales, and you’re able to keep even 5% for yourself after royalties and expenses, you’re making $500k a year. That’s a lot of money. There are lots of franchises in the food sector that do quite a bit more than $1 million in annual sales.

2. You’ll Never Have to Work for Anyone Else Again

Doesn’t that sentence have a nice ring to it?

For some, that outcome would suffice. Especially those who have had to become expert job intervieweesbecause of the number of times they’ve been downsized. If you’re someone who has experienced multiple job losses, you know what I mean.

3. A Sense of Accomplishment

I’ve worked with dozens of people who have told me that their main reason for wanting to buy a franchise was to have a sense of accomplishment.

A lot of the people I work with have been downsized from their mid to high-level corporate jobs and usually more than once. Some of them are so depressed, it’s heartbreaking.

Some of them have worked 14 hour days for months at a time, trying to accomplish the goals their higher-ups set for them, only to have their divisions shut down and their jobs eliminated through absolutely no fault of their own. These goal-oriented people missed out on reaching their goals because their jobs were eliminated. No wonder they’re depressed. They don’t feel they accomplished anything.

4. Building a Legacy

I’ve talked to dozens of would-be franchise owners who have told me that they didn’t want their children to experience some of the things they’ve had to endure over the years. (Like getting downsized over and over again.)

I’ve had people tell me the only reason they wanted to buy a franchise was to make sure their kids were set. They wanted their kids to have an opportunity to learn the business and eventually take it over if they chose.

ANSWERED

PLEASE RATE ME POSITIVE

THANKS