Franchising Can Be a Legal Money Machine
With a relatively small investment, franchising can be a vehicle to generate fees and royalties over and over. An introductory speaker at a franchise convention, who seemed to be a pretty ordinary and down-to-earth person, said, "Franchising has provided me with business and financial success beyond my wildest imagination."
Brad Sugars, founder of ActionCOACH, which has sold over 1,000 franchises in 22 countries, said, "The key to business success is creating a model where you make the sale once and generate revenue over and over, forever." That is franchising.
Franchising can also allow you to remove yourself from the day to day operation of your present business because you will run a franchising organization, not the one you presently own.
- Franchising is a proven and established way to expand that meets all legal requirements
- After the initial cost you can sell hundreds of franchises
- Faster expansion than growth from retained earnings
- Excellent return on investment
- Some elasticity in the franchisefees you charge
- Elimination of lease exposure
- Lower capital investment requirements
- Less involvement in local business operations
- Management team with a vested interest
- Fewer employees
- Pool of potential franchisees looking good opportunities
- Increased exposure and strength though combined advertising
- Operate a franchise marketing company rather than the business you now own
- Stable business model
- Brand building
- Network establishment
- International expansion
- Future exit strategy