You’re not alone.
Lots of people are attracted to the idea of owning a franchise business. And, lots of people are eager to learn exactly how to buy a franchise.
The franchise business model has been called, “The greatest business model ever developed.” It’s a system-based type of business; the people that invest in the business via the up-front franchise fee (the franchisees), receive training from the franchisor on how to run it, and are then given all the tools necessary to make it successful. (Profitable) For that, the franchisor receives a percentage of the franchisees’ sales revenue in the form of a royalty. Got it?
Admittedly, that wasn’t the most breathtaking description of the franchise model, but that’s really what it is. But, I can do better.
Let’s look into how a franchise business is created;
Someone, let’s call him Jimmy, comes up with a product and/or service that becomes very successful. (In this case, I want to make the it a product, let’s go with pizza.) After a couple of years of continued success, Jimmy wants to start growing his pizza business even more. He can do it in a number of different ways, with the most expensive being via company stores-additional physical locations.
Jimmy knows that he’ll have to invest around $200,000 for each one, because he’ll need kitchen equipment, tables, chairs, fixtures, all sorts of things that can quickly add up. Plus, he’ll be adding people to his growing payroll, and that means more paperwork and added expenses. Jimmy is not too enthusiastic about growing his pizza restaurant in this manner, but he knows that his one location has reached it’s maximum capacity. What else can Jimmy do to grow his pizza business?
Figure Out How To Buy a Franchise
Jimmy can turn his thriving pizza business into a franchise operation. Jimmy starts imagining hundreds of his pizza franchises sprouting up all over the US, and before you know it, he signs on with a franchise development firm, and transforms his independent pizza business into a franchise business. He doesn’t mind spending $100,000+ to do it, because he knows that he’ll get it back from all the franchises that he’ll sell. And, it sure beats expanding his business one company store at a time.
Did that help?
Before I lead you down the franchise exploration path, I’m guessing that you probably want to know who I am. After all, you don’t want to learn how to buy a franchise from just anyone. And, you do want to be a wildly-successful franchise owner, right?
Please spend 5 minutes learning about me here, and if you feel that I’m qualified to show you how to buy a franchise, pop back here; I have a few things for you to do that will start you on your journey….
Start at The Beginning
I’ve found that the best place to start, when looking into something big like becoming the owner of a franchise business, is at the beginning-in this case, with an Intro To Franchising. Knowledge is power; it’s also a great way to lower your financial risk and at the same time increase your odds of success as a franchisee. Once you figure out how to buy a franchise you’ll feel more confident moving forward.