Joel Libava
I got you at big.
Franchise lists are popular this time of year. Big lists…top 10 lists.
Lists like that are great. Franchise lists-and lists offering top tips, can be a good starting point for you if you’re thinking about buying a franchise this year.
But, what if there was a list of franchise opportunities that offer money-back guarantees?
Would a list like that be of interest to you?
I thought so.
Better fasten your
My Big List Of Franchises Offering Money-Back Guarantees
Are you ready for my big list?
Here goes…
What the heck?
I’m sorry. Must be a glitch with WordPress.
Let me try again.
Ok. Refresh your browser.
Now scroll down a bit…
Interesting. Same thing. Nothing. An empty top 10 list. I guess I should contact one of the WordPress experts I use.
No. I Don’t Need To Contact A WP Expert
That’s because there’s nothing wrong with WordPress. The Franchise King.com website/blog is working great. My server? Check. It’s running perfectly. It’s fast as usual. So, what’s the deal? Why won’t my big list of franchises offering money-back guarantees show?
Because No Franchises Offer Money-Back Guarantees
If they did…if franchise company CEO’s all of a sudden decided to include money-back guarantees for everyone who purchased their franchises…
Everyone Would Purchase Franchises
Everyone.
Well-everyone with enough money.
Right?
But, there would be some downsides if there were money-back guarantees in franchising.
Franchise attorney’s wouldn’t be needed as much. A guarantee is a guarantee, right?
Franchise consultants/brokers/coaches would go out of business. Who needs matchmakers? Just choose a franchise with a money-back guarantee! Any franchise!
Franchise books wouldn’t need to be written. Publishing houses would see a hit on their income statements.
Here’s an extreme thought:
So many people would end up buying franchises there wouldn’t be enough customers to buy the goods/services the franchisees sell.
In other words, customers would turn into franchisees. There would almost be as many franchisees as there were customers.
How crazy would that be?
We would become a nation of Owners.
Would You Buy A Franchise If It Came With A Money-Back Guarantee?
Would you?
If you had the money, would you become the owner of a franchise business-if you couldn’t lose?
I know I would. Even though I don’t exactly qualify to be a franchise owner.
What?
The Franchise King®, Joel Libava, doesn’t qualify to be the owner of a franchise business?
Alert The Authorities!
But Why?
If you’d like to know why a guy who’s brand name is The Franchise King® would not qualify-let me rephrase that, I would qualify…at least financially-oh heck; just keep reading to see what I’m talking about.
Here’s an excerpt of an interview that Melinda Emerson, The Small Biz Lady, did of me:
Smallbizlady: Your father’s business was a franchise. How did you like being a franchisee?
Joel Libava: I didn’t. I don’t mind working with others, as long as they’re ethical, unselfish, and genuine. I’m very picky about who I become strategic partners with. It’s the rules that I have issues with, especially if they’re stupid and meaningless. I just want to cut to the chase and do some business!
And, I was a lousy franchisee; that’s one of the reasons why I’m a super-valuable resource for people that are considering franchise ownership. I know how to spot good potential franchisees, and I know how to spot bad ones.
Did you see that?
Did you see the part about the rules?
I kind of knew (before I became a franchisee) that I had always marched to the beat of a different drummer. And I actually was okay with the franchisors’ rules for a little while.
Until I wasn’t.
Until I got more educated about what they were doing…and what they weren’t doing.
Anywho…
I would not make a good franchisee.
Because I don’t like rules.
Now, I’m not an idiot: I follow the ones I have to.
But, I’m better at making rules. My own rules.
What about you?
Tip: If you’ve decided that this is going to be your year…the year you move away from working for someone else-and start moving towards self-employment, make sure you know what type of business you’re suited for. For example, an independent business or a franchise business.
Take My Free Franchise Compatibility Quiz To Find Out
Franchises With Partial Money-Back Guarantees
Actually, a few franchise CEO’s have stepped up.
In 2010, SBI-Service Brands International, the parent company of Molly Maid, Mr. Handyman and ProTect Painters, started offering a money-back guarantee to new franchise owners.
The company said it would refund a franchisees’ entire franchise fee if $150,000 in gross sales was not met within the first 18 months of operation. Read
FYI: Don’t speed-read that last sentence. Doing so makes it look like Service Brands International was offering to refund up to $150,000! Read it again. SBI offered to refund the franchise fee, which at the time (2010) was around $20,000. The total investment was $150,000-$200,000. So, if you didn’t reach the $150,000 threshold, you would get $20,000 back. The rest of your investment would still be on you.
Over the years there have been franchisors that have offered to refund at least the franchise fee if certain financial goals weren’t met by new franchisees. I just can’t remember who they were right now. (I did do a few searches on Google. I couldn’t find them.)
If Buying A Franchise Wasn’t Risky…
Would you like to take a stab at finishing that sentence?
How about this:
If buying a franchise wasn’t risky, success wouldn’t taste as sweet.
Seriously: Doesn’t there have to be some risk to make your investment in a franchise worth it?
I think there does.
Do you?
I mean, doesn’t there have to be somewhat of a thrill factor built in?
Don’t you (at the end of the day) want to be able to pat yourself on the back and tell yourself that you took a risk and came out a winner?
Less Risk Is Better
Buying a franchise doesn’t have to be super-risky. There are ways to lower your risk. The risk of losing your money.
The franchise you end up purchasing could end up costing you $175,000 or more. That’s a lot of money!
Consider taking a small portion of it and investing it in ways that will lower your financial risk. You know what they say…
“Pay now or pay later.”
The two best ways to lower your risk when buying a franchise are:
1. Getting Educated
You really need to learn all you can about franchising.
What makes it great. What makes it not so great, sometimes.
You need to learn how to match yourself up to opportunities that fit your budget, your professional skills, and your goals.
You need to learn about all the different types of small business loans that are currently being offered these days.
You need to find all out about business planning-and the importance of writing a formal business plan.
There’s a lot to learn.
A lot.
2. Doing Great Franchise Research
You really need to learn how to do franchise research like an expert.
In order to do that, you’re going to need to have access to the best research materials available-along with a list of must-ask questions you need to ask franchise salespeople.
You’ll also want to have a list of specific questions -right in front of you, that every franchisee you contact must be asked.
Do you want them?
Every question you need to ask the folks at franchise headquarters and the top questions you must ask franchisees can be found right here.
Guaranteed!
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