How Much Can You Make in Franchising?
How Much Can You Make in Franchising?
The legal issue is compounded by the fact that franchisors are always trying to woo potential franchisees. Producing earnings projections and statements takes effort, time and money away from sales efforts. If accurate earnings results effectively turn franchisees away from a concept rather than woo them forth, this lack of sales funding hardly seems like a good move. If you want a straight answer about earnings, you should ask a franchisee -- they're more likely to be unbiased in this regard.
In a passive investment situation, you should be able to earn 10 to 15 percent ROI over time; however, most franchisees are not passive participants, which means that the opportunity to make more money could be substantial. Remember, there is no locked-in earnings guarantee. Generally, franchises yield earnings of at least 30 percent of their total investment annually, a record that you could easily expect to reach by your third year as a franchisee. Clearing a six-figure income, however, might take a few years, so you should be prepared to be patient.
Some industries, such as hotels, typically offer higher returns. A good rule of thumb is that the higher the investment the higher the ROI, though this is not always the case and you must always, always do your due diligence before making any weighty investment. For instance, if a franchisor requires a high initial investment but several current franchisees inform you that the earning potential is about the same as a competing franchise, you should probably go with the competing franchisee.
Some home-based business franchises require very little upfront cash but show promising earning potential. These franchises include IT, computer support and tutoring/education franchises . . . keep these industries in mind!
How Much Can You Make in Franchising - To learn more about this author, visit Sebastien Page's Website.
Like this article? Share it with your friends
Franchisors often don't give straight answers to franchisees asking the question “How Much Can You Make in Franchising?” due to the numerous legalities involved. To go into detail: the Federal Trade Commission (FTC) has strict requirements regarding earnings claims statements for franchisees. In a franchisor's Uniform Franchise Offering Circular/FDD, earnings claims statements must be accurate and substantiated in written form. Franchisors can get into a lot of legal trouble if they misrepresent themselves in their UFOCs/FDDs.
The legal issue is compounded by the fact that franchisors are always trying to woo potential franchisees. Producing earnings projections and statements takes effort, time and money away from sales efforts. If accurate earnings results effectively turn franchisees away from a concept rather than woo them forth, this lack of sales funding hardly seems like a good move. If you want a straight answer about earnings, you should ask a franchisee -- they're more likely to be unbiased in this regard.
In a passive investment situation, you should be able to earn 10 to 15 percent ROI over time; however, most franchisees are not passive participants, which means that the opportunity to make more money could be substantial. Remember, there is no locked-in earnings guarantee. Generally, franchises yield earnings of at least 30 percent of their total investment annually, a record that you could easily expect to reach by your third year as a franchisee. Clearing a six-figure income, however, might take a few years, so you should be prepared to be patient.
Some industries, such as hotels, typically offer higher returns. A good rule of thumb is that the higher the investment the higher the ROI, though this is not always the case and you must always, always do your due diligence before making any weighty investment. For instance, if a franchisor requires a high initial investment but several current franchisees inform you that the earning potential is about the same as a competing franchise, you should probably go with the competing franchisee.
Some home-based business franchises require very little upfront cash but show promising earning potential. These franchises include IT, computer support and tutoring/education franchises . . . keep these industries in mind!
How Much Can You Make in Franchising - To learn more about this author, visit Sebastien Page's Website.
Like this article? Share it with your friends
![]() | |
| |
No article feedback found. |
| |
Leave Your Feedback |
|
| |
| |||
John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
|||
Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
|||
George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
|||
|
To learn more about the Evan Elite Author Program please contact us. | |||
![]() | |
![]()
| |
![]() | |
|
| |
![]() | |
|
| |
![]() | |||||||
|
![]() | ||
|
| ||
![]() |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
|
|
![]() |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
![]() |
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"
Click Here To Learn More |
|
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
![]() |
|
|
![]() | ||
|
Top 50 Marketing Blogs
Top Blogs To Watch In 2008 | ||
|
Top 50 SEO Posts - 2008
Top SEO Posts of the Year | ||
![]() | ||
![]() | ||||
| ||||
| ||||
| ||||
|
|
|
|
|
||||||||||||
|
|
|
|
|









Subscribe to Sebastien's articles











