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Can Owning A Franchise Provide “A Great Return On Investment Over Time?”

return on investment when owning a franchise

A few minutes after reaching cruising altitude (during a recent flight to Las Vegas), I picked up the always-present airline magazine, and stumbled upon a “Special Advertising Section.” The topic: “Owning a Franchise.”

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

I thumbed through several pages that had the usual suspects; specific franchise opportunities that purchased 1/4 and 1/2 page ad space. I recognized a few of the brands, skimmed their ad copy, and continued on. And what I found was…
 

Franchise Stuff That Seriously Frosts My @ss

The next part of the “special advertising section” featured an “interview” of a franchise broker. A paid interview. Obviously.

The broker (sometimes known as a franchise consultant) shared his vast experience in franchising (I’m being sarcastic), and went on to talk about how many people he worked with on a daily basis. Here it comes.

We know where industry insiders are doubling down and investing more into brands, so I can really help my clients get to the right opportunities to build wealth and security.



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Say what?

It gets better. Worse, really.
 

Your Return On Investment When Owning A Franchise

These franchises may not be flashy picks, but they are solid investments that, if done correctly, will provide a great return on investment over time.”

Really? Are you sure?
 

Not Sure

If this broker used the word “mayinstead of “will,” I’d only have an issue with a portion of the “interview.” 

Specifically, if he said “These franchises may provide a great return on investment over time.” Of course they may not, which is my point.

But can you get a great return on investment (over time) when you own a franchise you’ve vetted thoroughly? Yes. Because franchising is good. Especially if your search for the right franchise is done carefully and methodically. And the franchise is well within your budget.
 
stock market
 

Doubling Down?

As I said before, part of the magazine interview (advertisement) featured a quote from the broker: ” We know where industry insiders are doubling down and investing more into brands.”

How does this franchise broker know?

And does doubling down mean that investors are putting double their money in certain franchise brands? If so, where’s the proof? Show me! Show the would-be franchisees you’re working with. Will you be using stock charts? Are you a Registered Investment Adviser?

Finally, you stated that you “Can really help my clients get to the right opportunities to build wealth and security.” Fantastic. Name the opportunities.

In other words, if I call you and tell you that “I saw your information in a flight magazine, and I want to know which franchise opportunities will build wealth and security for me and my family,” what are you going to tell me? I want freaking names!

Unfortunately, my experience tells me you’ll say the following:

Well first, Joel, I need to get to know you a bit. I have a 2 page questionnaire that you need to fill out, plus I’m going to need your financial information. But don’t worry…my services are totally free to you.”

Great! Now tell me about at least one of the franchises you represent that, if I buy it, will help me build wealth.”

Silence.
 


 
Maybe Verizon or AT&T is having technical issues.

Must be.
 

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joel libava

I'm The Franchise King®, Joel Libava. I help prospective franchise owners avoid bank account emptying mistakes. For over 20 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.

Joel is the absolute best. Do NOT engage in any franchise until you have consulted with Joel. He will save you tons of money and grief. I am absolutely convinced that if I had found Joel before I signed on all the dotted lines and spent some money with him, I would have avoided my looming crash and burn."
- Andy Mark
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