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Making Money with Your Franchise

Friday, August 24 2007

How long does it usually take before a franchise begins making money?

 

The answer to this question is easy. "Who knows?"

 

Even in the case of a proven, viable franchise concept, if the franchisee is (for whatever reason) inept, lazy, or otherwise distracted from taking care of the business, that particular unit is probably in trouble. Now, I realize that this is not the norm, but the point, is that both the franchisor AND the franchisee are responsible for the success of an operation at the unit level.

 

Another point that bears mentioning, is that only around 25% of franchisors offer any type of "earnings claim" when franchising a business. This is a startling revelation to me, because it is saying that most franchisors are not terribly proud of their results.

 

Again, the key is "franchise due diligence" when buying a franchise, that combined with a very careful period of assessment before making the investment.

In addition, make sure to read these articles:

  • Seven Key Steps to Buying a Retail Franchise
  • Statistically, buying a franchise is the safest way to own a business. But only if you choose the right one.
  • Seven Key Steps to Buying a Fast Food Franchise
  • Buying a fast food franchise, while potentially lucrative, requires a lot of hard work. The following key steps will help you prepare for becoming a ......
  • The Advantages of Short-Term Investments
  • Learn how a short-term investment strategy within a well-diversified, long-term investment plan may be the key to making the most of your money in the ......
  • Ten Key Provisions of Franchise Agreements
  • The Franchise Agreement governs the franchisee/franchisor relationship. But the terms and conditions and operations vary from franchise to franchise and industry to industry.
  • How Much Does a Franchise Cost?
  • If you are interested in purchasing a franchise, it's vital you understand the upfront costs and recurring fees.
  • What Is a Franchise?
  • A franchise is a legal and commercial relationship between the owner of a trademark, service mark, trade name, or advertising symbol and an individual or ......
  • Where Can You Find a Franchise to Buy?
  • Here are some useful resources for finding available franchises.
  • Understanding Franchise Agreements
  • A franchise agreement is the legally binding cornerstone of a franchisor-franchisee business relationship. It spells out, in carefully worded terms, how the new franchise will ......
  • What Franchise Payments Should Franchisees Expect...
  • There are a number of franchise-specific fees and also all the other business expenses.
  • Buying a Franchise
  • From the Small Business Administration An important step in the small business start-up process is deciding whether or not to go into business at all....
  • Shopping at Franchise Expos
  • Searching for the perfect franchise opportunity can require a lot of legwork. Franchisors realize this, and that's one reason most of them participate in franchise ......
  • Getting Out of a Franchise
  • When it comes to breaking a franchise contract the law usually swings in favor of the franchisor.
  • What Do Franchise Brokers Do?
  • Franchise brokers are employed by franchise companies to sell franchises. If you are looking at franchise opportunities, sooner or later you will encounter a franchise ......
  • Funding Your Franchise
  • Except with home-based operations, most franchise businesses are going to require that you get some type of funding.
  • How to Franchise Your Business
  • Examine these key criteria to determine whether your concept and operating system are franchisable.

Latest Comments in  posts

???????? ...
By: christy on 8/26/07 at 11:09 PM
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