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Popular Reasons For Buying a Franchise (Part 5)

In Part 4 of this series on "Popular Reasons For Buying a Franchise," I discusssed the money part of the equation, and how money wasn't as important as some people thought. In case you are just joining in, here's Part 4.

Now, I'm going to bring up a reason that's not only a popular one, but one that's a close cousin to money. It's one that you may be thinking about, if you're in the market for a franchise of you're own, but it may not be top of mind…

(This post may contain affiliate links. Please read my disclosure policy).

Let's talk about something that's invisible at first, but starts to appear, as your franchise starts to grow;


A good portion of the folks that attend my presentations on franchise ownership usually include folks that have been downsized, and who are "looking at all of their options."


One of the questions I pose to attendees is this one;

"Have you ever been able to sell a job?"

I usually get some blank stares, and then I continue;

"What I mean is, do you think it's possible to build equity as an employee? In other words, if you know that you're position is about to get eliminated, are you able to sell your job to someone? Is it worth anything?"

Some of the attendees bring up the fact that they get a severance package, so that's really their "equity."

The type of equity that I'm referring to is the kind in which you can sell something that you own, for cash. Like a business.

Starting at zero

That's what you start at when you're investing in a start-up franchise of you're own. Zero. Until your loan debt is paid off, and you're breaking even with regards to your total up-front investment, you have no equity.

It takes years to build equity in a start-up business, of any type.

It will take lots of really hard work, and lots of revenue!

What will you do with all of your equity?

I know what you'll do with all of your job equity. You'll try to make all of your wonderful equity severance last until you find your next great, secure job. Enjoy.

When you've had a successful franchise operation going for a period of time, and you've paid off all of your loans, you have entered into the world of business equity. You can;

  • Keep building up your equity
  • Sell your franchise to someone else, and keep your equity

Those are some pretty cool choices.


Imagine what you could do with all of your equity….

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It can happen, you know.


In Part 6, I'll share another Popular Reason For Buying a Franchise. Here's a little hint; it has to do with family.

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There's help available

If you're considering franchise ownership, I have several way in which I can help you figure things out.

1. If you're a good student, and self-motivated, I have a couple of franchise eBooks that will help you learn how to select and research franchises. Correctly. Go to Franchise Online


2. If you'd like something a little more personal, as you try to figure this franchise thing out, I offer franchise advisory services by phone. See my company website to learn more.

Here's Part 6 of the series

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joel libava

I'm The Franchise King®, Joel Libava. I help prospective franchise owners avoid bank account emptying mistakes.
For 23 years, I’ve been showing people how to make smart, informed decisions on franchises to buy, and I can help you, too!
P.S. I'm not a franchise consultant/broker.

Straightforward Advice
Joel, thank you for taking the time to speak with me yesterday. It was refreshing to finally speak with someone in franchising who dishes out straightforward, candid advice. You provided me with some insightful ideas that I'm giving a good deal of thought and consideration to. I look forward to speaking with you on our next consultation call."
- John Timmins, Columbia, South Carolina
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