FAQ Page
Should I buy a franchise or start my own business?
When you buy a franchise, you buy a business model or “system” for making money. The true value of a franchise is that you get a proven and fully formed business model. One of the main differences between success and failure in a business is how well your business model works. Trial and error are greatly reduced.
How do I find the right franchise?
- The best bet is to know someone with a healthy franchise who is willing to sell.
- If that is not an option, you can look online for franchise opportunities and franchise resales. That process can take a very long time, and and determining true financials of a resale is extremely difficult.
- You can work with a Franchise Consultant or Broker, who can assess your personality, professional and business goals and present you with some industries and/or business models that you might like to explore from a much deeper pool of resources than you would find online.
How much does it cost to buy a franchise?
The average cost for the largest number of franchises is between 85-175K. Most franchises provide a service rather than a product, so they don’t require rent and build-out which helps keep the cost low. They can be started from a home office or small office. If you look at the average cost of franchises that require rent, build-out, inventory, etc. (I call these Brick and Mortar franchises) your average cost moves into the 275-600K range. With respect to Brick and Mortar franchises, the bigger the brand, the higher the cost so your larger franchises like McDonalds, Popeyes, and 7-11 can cost between 900K-2 million.
What are the most profitable franchises to own?
The most profitable franchises are typically business to business franchises such as Staffing, Consulting, Marketing/Graphics/Signs, Commercial Cleaning, Maintenance, and Computer/IT. That said, franchises in Senior Care, Storage, Pet Supplies/Services, Dry Cleaning and Remodeling can also be very profitable. It is important to highlight that every franchise has a group of Top, Middle, and Bottom Franchises and that during your investigation of a brand, you can connect with franchisees from all three groups to compare how you might run your business vs. how they run theirs.
What is a good franchise to buy?
A good franchise has a great training program, great methods for marketing the business and great ongoing support. Good franchises care about their individual franchisees and make sure they get the consulting and coaching they need to be successful. Good franchises usually have lower turnover, higher growth rates, and higher franchisee satisfaction scores.