Buy a franchise
A new franchise opens every 8 minutes of every business day and drives over 40% of all retail sales.
Read that again…and again. So it is simple, right…just open a franchise and make money? But…and you knew there was a but, as the saying goes “If it was that simple everyone would do it.”
What are my options?
If you are thinking about owning your own business you have choices. The first choice is to start your own business, your second choice is to buy an existing business and your third choice is to buy a franchise and become a franchisee. If you would like to know more about your options, the following article may be of interest to you. Business ownership – what are my options?
Search our database of franchises
Are there many types of franchises available to buy? Absolutely!. To see the range and variety of different types of franchises available, the following will connect you with our database of available franchises.
What is a franchise?
According to the International Franchise Association (IFA), franchising can be traced back to the 1850s. Annually, franchising accounts for over $800 billion in sales, and employs over 8 million people. Franchises are the most successful businesses on the planet with an over 95% success rate and at the same time creating over 170,000 new jobs per year.
What are the advantages of a franchise?
A franchise almost always offers a successful and proven business model. The owner of the concept or Franchisor has started the business, built it up, made mistakes, corrected the mistakes, made the business stronger and put together a repeatable system that is now available for franchise buyers to join and get a return on their time and investment.
As a franchisee, this helps you manage your risk of as an aspiring business owner.
Do you know that franchising accounts for over 2.3 trillion in the U.S. economy and provides 1 out of every 7 private sector jobs in the United States?
Are you like many others and simply don’t know where to start? Do you keep asking yourself the following questions?
- I’m ready to own and run my own business but I’m not sure what kind.
- How do I know which of the more than 5,000 franchise concepts that are available is right for me?
- Can I own and run a franchise if I have never owned a business before?
- What training, marketing, operations and other support do I get so I will be successful?
- How much will I have to invest in a franchise?
- Is there third-party finance available to help with my investment?
- Do I need to run the business each day or can I hire someone to run it for me?
- Can I open multiple locations?
The questions are endless. As your consultant, my role is to help you analyze your lifestyle, financial and business requirements, and coach you to focus on a few opportunities that best fit your goals. Part of my role as your franchise consultant is to define those goals. Once we know what’s important to you, I present you and your qualifications to the franchises in which you have an interest. You then work with each Franchisor to fully understand the franchise concept and then we work together, independently of the Franchisor, to make sure this is the right concept for you and your family.
One of the most intriguing aspects of buying a franchise is the large range of opportunities. These include:
- Part time, part-time growing into full-time or full-time.
- Home-based, professional office, commercial location or retail brick-and-mortar
- Retail, service, business-to-business, sales, consulting and more
- Owner-operator or investor
Who buys a franchise?
The majority of franchise buyers are success-oriented, educated, family minded, corporate people. As corporations switched their focus from employees to investors, they realized how expensive their senior level employees had become and they began down-sizing their mid and upper-level managers to save money and improve investor returns in their companies. These managers are now the driving force behind franchising and come from all walks of life, educational and economic backgrounds.
Some typical qualifications are:
- Between 35 and 55 years old
- Corporate management background
- Income average $80,000 to $150,000 with a Net Worth of $300,000 to $800,000
- Majority have IRA/401K retirement plans
- Men, couples, women, in that order
- Most have not owned a business and want to build a business that will allow them to retire
- Looking for on-going marketing, training and support
- There are many questions to ask if you are considering buying a franchise. I am here as a resource for you as I’ve now personally owned and operated 5 different businesses with my current venture being a franchise.
What type of franchises can I buy?
If you would like to see the different types of franchises available, the following will connect you with our database of available franchises.
We can assist you in buying a franchise in the areas of the State of California including the cities of Sacramento, Citrus Heights, Rancho Cordova, Folsom, Elk Grove, Roseville, Rocklin, Davis, El Dorado Hills and Cameron Park
What does it take to succeed?
There are many factors that come into play for you to become a successful franchisee. Some of the most import ones are:
- Talent: One of the best ways to be successful in a franchise is to take your professional skills, management or sales skills, experience and successes PLUS what you enjoy doing the most when you go to work and find a franchise that fits this formula. Once you find the right opportunity, you will never have to work a day in your life as you will enjoy doing what you do best with the rewards that follow.
- Investment: The days of buying a house with no downpayment are gone. To buy a franchise you will need to have money to invest. The range of the total investment in a franchise varies from less than $50,000 up to many millions. The average total investment of around $250,000. There are still a lot of good, solid franchise opportunities though with an investment requirement of less than $100,000 and there are financing options available as well.
- Family Confidence: Such a major decision of buying a franchise should not be made in a vacuum. If you have a life partner they need to be part of the decision-making process and if they are on board with the decision, provide the necessary support during the initial stage of planning, building and opening the franchise. Part of my process is to involve family members early in the process so they understand the conversations and can ask questions and cover concerns that are important to them.
- Follow the Plan: Franchises are successful for a reason and they are much more successful than an independent business. The reasons include proven systems which they use to train their franchisees, train and guide them with what works, and to avoid costly mistakes. Following the plan of the franchisor is one of the keys to your success.
- Validation: One of the best tools to make sure your final investment decision is well grounded is that as a franchise buyer, you are allowed by law to speak to the current franchise owners or franchisees. You are allowed to ask any question so you can understand how others enjoy their investment and if this is the right place for you.
What are the steps to buy a franchise?
If you would like to know the steps to buy a franchise, the following article may be of interest to you. The many steps to buy a franchise
How do I find the right franchise to buy?
A very question I get on a weekly basis – How do I find the right franchise to buy? This is a critical question and I’ve put together the following article to help you. How to find the right franchise to buy?
How do I know the performance of a franchise?
If you are considering buying a franchise and would like to know the rate of failure of the franchise, you are welcome to view the following report. It comes with the help of Bob Porter at Plumas Bank in Auburn, CA. To see the report, simply click the following link – Performance of a franchise
Can I use my 401k or IRA as a down payment to buy a franchise?
A common method for corporate executives to buy or use as a down payment to buy a franchise is their 401k or IRA money. The IRS has strict guidelines that normally prevent a 401k or IRA from being used for any purpose prior to retirement without incurring a withdrawal penalty. However, as long as the retirement funds are invested and administered correctly this is allowed.
If you would like more information, simply click the following link – Entrepreneur Retirement Plan of America.
How I can help you?
There are many reasons I can help you buy the right franchise instead of going direct to the franchisor. Here are a few:
- “Do things from a position of strength.” Your chances of success are much greater when you understand all your options, what you expect the franchisor to provide, what support you can expect from your family and most important of all, what you expect to bring to this new experience of owning and operating your own business. My role is to help you navigate the choices so you do things “from a position of strength.”
- The role of the franchisor is to explain their Strengths, Weaknesses, Advantages and Threats or SWAT. Your role is to understand your Strength, Weaknesses, Advantages and Strengths. My role is to understand all this and then work with you to make sure we find the best opportunity so you Successfully Buy Your Franchise.
- The franchisor wants the right people in their franchise so they are successful. They will share with you how great their franchise is, but my goal will help you identify the franchisors’ competitors that may be even better or perhaps another franchise concept in a completely different industry you may not know anything about.
More information about buying a franchise
If you would like some more information about buying a franchise, the following articles may be of interest to you
- The Federal Trade Commission Consumer Guide to Buying a Franchise
- The history and regulation of franchising
- The franchise Due Diligence process
- Six FAQs about buying a franchise
Ready to start?
If you have questions or an interest to buy a franchise, allow me to offer the process I use that puts you in control to see if franchising is the right option for you; all at no cost to you.
Alternatively, call me today at (916) 570-2674 or click this link for me to contact you.Contact us here