Why You Should Start A Franchise | By: John Mollica, CPA, CISA
By: John Mollica
June 26, 2019
There are SO many reasons to start a franchise, I don’t even know where to start.
Actually, yes I do!
- Work For Yourself
- Work Potentially Anywhere
- Make More Money
- Grow Your Portfolio
- Build Your Retirement
- Live Better
- Take More Vacations on YOUR schedule (Sick Time? PTO? Nope. You choose when to step away.)
- Leave Something To Your Family
- Hire Your Kids, Teach Them Work Ethic
- Build Your Business With a Support Team
- Don’t Have to Rebuild the Wheel
- Take a Chance
Now I’m going to be 100% transparent with you. Franchising is NOT for everyone. If any of the following describe you, franchising might not be the right fit.
You should not take the franchise route if you are:
- Tendency to Give Up
- Need Immediate Results; Zero Patience, Not Willing to Wait For Success
- Both No Money AND Bad Credit (if only one applies, you qualify!)
The most successful franchisees that we took under our wing came equipped with the following personality traits:
- Ready to Work
- Listen to our Advice
- Willingness to Pay For Speed (Do-It-Yourselfers come with a significant disadvantage in the current Information Environment)
- Open Communication
And that’s really it!
If you’ve got the above personality traits, and either some money saved OR good credit, you can start a franchise and realize your financial dreams.
Now you may be wondering what the advantage is by doing a franchise instead of a normal business.
The reasons are plentiful:
- With a franchise, the wheel is built. With a business, you have to start from scratch.
- With a franchise, you have a prebuilt support team. With a business, you start alone.
- With a franchise, the market already knows who you are. This is HUGE! With a business, no one knows you.
- With a franchise, you are backed by a potentially national or global brand. With a business, you’re building a brand from scratch.
Of course, there are reasons to do a business instead of a franchise:
- With a business, 100 percent of your profits are yours. With a franchise, you have to pay a small percentage (typically six percent) of your Gross Sales to the franchisor. This is in exchange for services and support provided by the franchisor. Details may vary among franchisors.
- With a business, it is very cheap to get started depending on what business you start. For example, a manufacturing plant may cost millions, whereas a consulting firm may just cost a few thousand to get started. With a Franchise, you typically have to pay a Franchise Fee. The fee varies greatly among franchises, but is typically tens of thousands of dollars. In exchange for this fee, you get to operate as a potentially well-known brand and enjoy customers immediately. This is not the case when you start a business for yourself.
- With a business, you have complete creative control as to how to run your business. With a franchise, you have to use the franchise’s premade branding and process. However, this is seen as a big advantage to most people. You don’t have to think! You already have everything laid out, step by step.
If you want to live better, give a better life to your family, and achieve your place in the American dream, starting a franchise is the right move for you.
Not sure where to start? We do!
Book an appointment today and get started in minutes.
Your Franchise CPA,