Why You Need To Change How You Analyze Franchise Earnings Claims

It’s great when you run across six-figure franchise earnings claims online. Almost makes you want to buy that franchise. Especially when it reads like this:

1-800-Paint-It

Revenue: $587,335

EBITA—-$280,404

(Earnings before interest, taxes, and amortization)

In other words, franchisee earnings.

And who wouldn’t want to make $280k?

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Let’s Call 1-800-Paint-It To Check On Those Earnings Claims

Would you like the contact information for 1-800-Paint-It?

Well you can’t have it, because I just made that name up. But here’s the thing.

As of late, I’ve been seeing more and more of these “franchise earnings claims” online. Why?

Because a new breed of franchise marketers has jumped into franchising.

They’re aggressive, and everything they do has to do with numbers.

Revenue numbers. Profit numbers.

Numbers, numbers, numbers.

Numbers, schmumbers.

Thing is, these numbers don’t matter at all. Why is that, Joel?

Because you’re looking at them wrong.

Wait…aren’t they important?

Isn’t it important to find out how much the franchisees are making?

Of course it is.

Just not in the way you’re looking at them.

Watch the video.