matter what job you have, there are probably
days when you've just had it with excessive
demands on your time, conflicts with coworkers
or company policies, and pay raises that barely
keep up with inflation. At that point, you may
start thinking about being your own boss-realizing
the American dream of owning your own business.
You may have
thought about buying a franchise. In this business
arrangement, a franchisor (the parent
company) sells the franchisee (you) the
right to sell its goods or services in exchange
for a franchise fee. It might seem like just
what you need to make a big change in your career
and your life. After all, everyone already knows
about Meineke Muffler, Subway, Dunkin' Donuts,
Stanley Steemer, and hundreds of other businesses
that have made the roads going through most
of America's towns and cities look pretty much
alike these days. As a franchisee, you'd have
the advantage of being able to use the company's
name, recognizable storefront, and trade secrets.
And you've heard that franchise fees for some
businesses run as low as $10,000.
But do you really
know what's involved in a franchise agreement
and in running a franchised business? There
is much more to it than paying the franchise
fee and opening the doors. While fees may seem
fairly reasonable (the majority are under $40,000),
that's only the beginning. You will need an
upfront investment that amounts to much more
than the franchise fee. For example, survey
results in the article "Annual Franchising
Industry Overview" ( Bond's Franchise
Guides) showed an average of $27,300 for
a motel franchise-but estimated start-up capital
or line of credit was $6,600,000. Even a smaller-scale
business category-say, a shop that sells donuts,
cookies, or bagels-carries an average franchise
fee of $24,676 with estimated startup capital
at $261,165. In addition, most franchisors have
requirements for your personal net worth.
a franchise is not easy, and anyone who goes
into one believing that the business will run
itself is destined for failure. It carries a
lot of responsibilities. In fact, you may feel
that you're still working for someone else once
you learn about the restrictions, requirements,
and specifications that will be imposed on you
by the franchisor. You will need to unerringly
follow their practices and meet their standards,
and you will sign a contract that says so.
will also spell out what happens if you want
out or can't make a go of the business. Some
franchisors specify in their contracts that
even if you are running the business as a corporation,
you and your spouse can be sued as individuals.
You'll want to hire an attorney to carefully
check the whole contract over before you sign
anything. You'll also need an attorney to help
you obtain the business licenses you will need.
If you will be selling food to the public, you'll
need a license from the health department, and
you will also need to always be ready for surprise
But let's say
you've got enough saved for the fee, you've
got a more-than solvent net worth, you feel
capable of understanding and taking care of
all the details, and you can borrow the rest
of the money you need. What could go
wrong? It sounds like a sweet deal, doesn't
Do you have enough money to run the business
until it starts turning a profit? This
means you will have to pay employees,
pay for product, make payments on your
business loan, and send the franchisor
a monthly royalty of 4%-8% of total sales
(not of profit), depending on your contract.
Other initial and ongoing costs include
insurance, employee training, inventory,
equipment, rent, maintenance of the site,
and your share of advertising expenses.
Was the franchisor's projection of your
earnings overly optimistic?
Is your family behind you-even willing
to work with you? Does everyone realize
that you will be working hard at the business
location for all the hours it is open
every day, and that you will be the first
one there in the morning and the last
one to leave at night? do they realize
that vacations are pretty much out of
the question for a long time now, and
that even if you manage a weekend getaway,
you're always "on call"?
How well do you interact with people?
You will be dealing with employees (some
of them unreliable), customers (some with
complaints), and your contact people at
the parent company-in effect, your new
If things get crazy, can you keep your
Did you choose a business that you actually
enjoy and find exciting? Or did you just
buy yourself a job that has got you trapped
even worse than the one you left behind?
There is a much less complicated way to achieve
financial independence and success without jumping
on a franchise rollercoaster that never stops.
We offer a viable, legitimate way to earn an
exceptional income without the huge investment,
the loss of freedom, or the sacrifice of time
with your family. As a home-based business owner,
you'll work in the peace, quiet, and comfort
of your own home. You'll set your own hours.
You won't have employees that drive you crazy.
Instead, you'll work with a support team that
will mentor you in a professional, respectful
ditch that going-nowhere job and be your own
boos-without the hassle of a traditional business.
For free, no-obligation information, simply
fill out the web form below.