Franchise – FAQ
How much can I make owning a franchise?
How much can you make owning a business or franchise? This is the age-old question. Everyone wants to know how much money they can make when they start a business or join a franchise system. However, there is no tried and true method for determining profitability of any business.
There is some data out there, but it is just data because– no one can guarantee you to make a certain amount or how long it will take you to reach your goals.
Time to profitability and success in any business depends upon many, many factors.
These factors include:
- Business and financial acumen of the owner
- Skill sets and ability to leverage them into your new business
- Ability to follow the franchise systems and processes.
- Location – depending upon the type of business and geographical area.
- Demographics of the location – is this a good business for the customer demographics?
- Economic factors – sometimes there are factors that are out of your control.
- Marketing and advertising – with a franchise you will have the experience of the franchisor to help you avoid wasting money needlessly.
- Sales orientation – if you are not ‘sales’ oriented, either get training or hire a salesperson to help you.
- Customer Acquisition – having a good plan for finding customers
- Customer service – keeping customers is key to long term success.
- Choosing the right employees
- Asking for help when needed – not trying to do everything – no one is excellent in every area. Having a franchisor or franchisees to ask for advice can be just the ticket to saving you lots of time and expenses.
- Acquiring good advisors – mentors, accountants, and attorneys.
- Utilizing resources such as SCORE and SBA.
- Available cash resources to get you through to cash flow. Many businesses fail because of lack of cash reserves rather than not having enough sales.
- Dedication to hard work, learning new processes, and operating the business.
- and Much More
With a franchise, you have many advantages including the Franchise Disclosure Document (FDD). The franchisor and franchise consultant are, by law, not permitted to promise you any guarantee of income or sales. But you can look at the FDD and if there is an Item 19 disclosure you may see some average sales of franchisees. Knowing how to read this Item is important. Many franchises do not provide an item 19, especially if they are an emerging brand. This is common and expected as with more franchises, more data is available. With an emerging brand and few franchises open, there is less information to present.
Happy Franchisees are Successful
The beauty of a franchise system is the ability for you to call existing franchisees and ask them about their experiences with the franchise. Find out if the franchisees are happy in what they are doing and with the franchise in general. You can bet that happy franchisees are successful. After all, personal fulfillment and happiness is a huge factor in owning your own business in the first place. I find personal fulfillment and happiness are priceless.
Talking with Franchisees
In addition, when you get to the point in your discovery process, where you are talking with franchisees you can ask to talk with franchisees in tiers. Ask to talk with two high-performers, four mid-performers, and two low-performers. Franchises with more than 50 franchisees should be able to accommodate you. You will want to ask the high-performers what they are doing to be high-performers, this is what you will aspire to. The same with mid-performers and low performers.
This is just a short overview of the franchise discovery process. There is a lot more to it. It is about finding a franchise that is a good fit for your interests and goals. That is why I am a franchise consultant; I want to help people understand how important it is to choose the best fit.
The best thing for you to do is to work with me to help you find the businesses that will be a good match for your goals.
And by the way, if you own your own business, you absolutely have the potential to make a lot more money than you are probably making now, there is no limit when you own your own business and things fall into place!
Keep in mind, if you are starting a business on your own, you will have nothing to go by to determine potential income. With a franchise you have other franchisees experiences and the franchisor’s information. You will still need to complete your due diligence process, but you will have more information than going it alone.
Contact Trish for more information and to assist you in your search for the perfect franchise fit
Keep following my Blog for more insights into fantastic franchise options. Remember owning a business is about matching your skills with the right business that meets your personal and professional goals. My 6-step process will guide you to the right business for you and get you introduced to opportunities that work for you.
What are you waiting for?
Trish Benedik owner of Select Franchise Consulting will help narrow your options and find the franchise that is the right fit for you saving you time and frustration. Our consultation will help you make an informed decision. There are thousands of options in franchising, find the one that is a good fit for your business and lifestyle goals.
Disclosure: Select Franchise Consulting/Trish Benedik/T A Benedik, LLC does not guarantee the financial performance of any franchise, licensed affiliate, or business opportunity. The decision to purchase a franchise, licensed affiliate, or business opportunity must be based on the buyer’s independent research and analysis. Select Franchise Consulting/Trish Benedik/T A Benedik LLC is not liable for any representation made by a franchisor and/or a franchisors employee, affiliate, or associate with respect to real estate, financial, operations, or marketing performance of the business being acquired.