Do you want to buy a profitable franchise but you don’t know which one to go for? Or you are looking for a low risk way to invest your money in a franchise for high returns, while keeping your day’s job? If you answered YES to any of the questions above, then you are welcome to ProfitableVenture.com; the ultimate resource for franchise owners and investors.
“There are fast ideas and slow ideas, just as there are fast trains and slow trains. When it comes to money, most people are on the slow train looking out the window watching the fast train pass them by. If you want to become rich quickly, your plan must include fast ideas.” – Robert Kiyosaki
How to Get Started on ProfitableVenture.com
1. Franchise Opportunities Based on Industry
Not everyone is willing to go through the challenging process of starting a new business from scratch. Some would rather build on a tested and proven Business model of which franchises are part of. In this section, we will explore and bring to you the best affordable franchise business opportunities in the various industries and sectors.
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2. Franchise Opportunities Based on Cost
In this section, franchise opportunities are categorized according to their required investment level starting from the most expensive franchises to the cheapest, affordable franchises.
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3. Franchise Tips and Advice
Starting and running a successful franchise requires not just knowledge but a certain set of skills. In this section, we will provide undiluted advice for entrepreneurs seeking to navigate the murky waters of running a business and grow their franchise fast. We will also analyze the various challenges of starting of franchise and how to overcome them.
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Frequently Asked Questions
Can You Buy A Franchise With No Money?
It is not possible to buy a franchise without money. You’ll need to pay an initial franchise fee, and you will have other start-up costs to contend with. Furthermore, franchisors want to see that you have some stake in the game in the form of a down payment.
Can You Buy a Franchise From Someone?
When opening a franchise, you can either open a new franchise location or you can purchase an existing franchise location. By buying an existing franchise, you could have a proven successful business instantly in place with regular customers and a good cash flow. Because the business is already operating successfully, it will also be easier for you to get financing.
Can You Buy a Franchise With Bad Credit?
Yes, it’s possible. Bad credit isn’t an automatic denial. By creating a plan and showcasing that plan to the important parties in your franchise ownership, you can set yourself up for success now and long into the future.
Can You Buy a Franchise With No Experience?
With franchising, a lack of industry experience is no barrier to entry. Of course, some franchises will require industry experience, especially if it is one where qualifications are required in order to trade, but this represents the minority.
- Where is the Best Place to Buy a Franchise?
These states were chosen based on the strong economy and growing job market they have. Some of the best places to start a franchise in the United States are;
- North Carolina
- What are the Advantages of Buying a Franchise?
Buying a franchise can be a viable alternative to starting your own business. Listed below are some advantages of buying a franchise.
- Franchises offer the independence of small business ownership supported by the benefits of a big business network.
- You don’t necessarily need business experience to run a franchise. Franchisors usually provide the training you need to operate their business model.
- Franchises have a higher rate of success than start-up businesses.
- You may find it easier to secure finance for a franchise.
- It may cost less to buy a franchise than start your own business of the same type.
- Franchises often have an established reputation and image, proven management and work practices, access to national advertising and ongoing support.
- Can You Buy an Existing Franchise?
Yes. In fact, purchasing an existing franchise can set you up for success by offering a quick return on investment.
- What are the Pros and Cons of Buying an Existing Franchise?
- Brand Reputation: If you are buying an existing Franchise then local brand engagement and reputation has already been created by the previous Franchise owners.
- Ready Customer Base: With a running Franchise, you need not worry about customers. They are already engaged with the franchise.
- Trained Staff: An existing Franchise will also have trained staff. There is no need for you to train them from scratch, since they will be well-aware of the business.
- Clear Expectations: You will have an idea about the actual revenue of the Franchise, which helps in deciding if you are to stick to the same marketing plan or to make improvements.
- Immediate Returns on Investment (ROI): You are in a revenue earning environment as soon as you complete basic training and take over the business from the previous Franchise owner.
- Resistance from Customers: There is no guarantee that the existing customer base will take kindly to a change in ownership, especially if it is a customer-facing business like an eatery.
- Issues with Existing Staff: Similarly, the staff would be in alignment with the previous owner and may have apprehensions about a change in ownership.
- Dealing with Old Issues: If the previous Franchise is working well and you are buying it, then you have an advantage. If not, initially, you have to deal with old issues.
- Change of Terms and Conditions: The Franchisor terms and conditions may not remain the same when you buy an existing franchise. You may have to renegotiate with the fees and terms again with the franchisor.
Why Do You Buy an Existing Business?
Buying an established business means immediate cash flow. The business will have a financial history, which gives you an idea of what to expect and can make it easier to secure loans and attract investors.
What is the Total Investment Required for Getting into a Franchise?
The cost of entry varies greatly, by both the segment you choose and the franchise brand you select within that segment. While costs range from less than $10,000 to upwards of $5 million, the majority of franchises run from about $50,000 or $75,000 to about $200,000 to get started.
Should You Buy a Franchise or Start a Business from Scratch?
If you are on the fence about opening and starting your own business from scratch, you should know that opening a franchise can be a safer route to travel down. When you are an entrepreneur, you are often left to your own devices to find solutions for problems, and you can run into some unpleasant surprises along the way.
What are your Financing Options to Pay for your Franchise?
- Franchisor financing
- Commercial bank loans
- SBA loans
- Alternative lenders
- Friends and family loan
What is a Good Franchise to Buy?
Clearly, determining whether a franchise will be good for you is a subjective activity. But with that in mind, there are several franchises out there that meet all those general requirements of a good franchise, and which are well worth looking into.
- 7-Eleven Inc
- The UPS Store
- Anytime Fitness
What are their Initial Investment Costs and Franchise Fees?
- Initial investment cost: $37,200 to $1,635,200
- Franchise fee: $25,000
- Initial investment cost: $1,008,000 and $2,214,080
- Franchise fee: $45,000
- Initial investment cost: $109,700 and $1,637,700
- Franchise fee: $40,000
The UPS Store
- Initial investment cost: $137,849 – $566,585
- Franchise fee: $9,950 to $29,950
- Initial investment cost: $62,900-$279,300
- Franchise fee: $25,000 to $42,500
- Initial investment cost: $3,985 – $51,105
- Franchise fee: $1,000
- Initial investment cost: $200,000
- Franchise fee: $10,000 and $30,000
Is It Best To Purchase a Franchise By Yourself, Or With Partners?
Going it alone will certainly give you full autonomy and control over your business, but a partner may allow you to expand into a more dynamic approach. Many franchise business owners look to expand after opening their initial locations, but going it alone can prove difficult, both in terms of finances and operations.
Also keep in mind that sharing your franchise business with one or more partners opens the door to potential complications, so you need to be wary of these.
Is It Better to Buy an Existing Business Or Start a New One?
If you’re worried about the difficulties involved in starting a business from the ground up, you might decide that buying an existing business is a better fit for you. When you buy a business, you take over an operation that’s already generating cash flow and profits.
You have an established customer base and reputation as well as employees who are familiar with all aspects of the business. And you don’t have to reinvent the wheel—setting up new procedures, systems, and policies—since a successful formula for running the business has already been put in place.
What is the Likelihood That a Franchise Will Bring You Repeat Business?
It all depends on how the business was operated initially. If it was run properly, then you can be guaranteed to have repeat businesses. If it does not, then you can create your own repeat customers in the following fashion;
- Start a loyalty program
- Offer personalized customer service
- Give out future-use coupons
- Get customers’ contact info
- Offer some freebies
What is the Disadvantage Of Buying a Franchise?
These are the few disadvantages of buying a franchise;
- Less flexibility than running a business on your own.
- Except in rare instances, you must share profits with franchisor.
- Set rates for certain business expenditures.
- Business reputation is somewhat dependent on others who also run the same franchise.
- Franchisors, by and large, hold the majority of the renewal power.
What Does The Future Hold for the Franchise Concept?
Over the long haul, franchise businesses, just like the stock market, have proven to be among the soundest investments. Even in the most challenging economic climates, such as the great recession of 2008-2010, the franchise industry weathered the storm better than virtually every other retail segment and has bounced back to new highs.
Is Buying a Franchise Profitable?
Franchising is like other businesses. You have to plan, initiate and sweat to make it profitable. But your chances of success is higher comparative to starting from scratch.
How Do Franchise Owners Get Paid?
The royalties a franchisor receives is the true element in which most franchisors make their money. The royalties a franchisor receives will be defined in the franchise agreement but will normally come in the form of a fixed flat rate or a percentage of gross or profit from the franchisees business unit.
What Franchise Can You Buy For 100k?
There are loads of franchises you can get for 100k. They include;
- Cruise Planners
- SuperGlass Windshield Repair
- Dream Vacations
- Dickey’s Barbecue Pit
- Expedia CruiseShipCenters
- Jimmy John’s Gourmet Sandwiches
- Property Management Inc.
- Naturals2Go Vending
- Home Helpers Home Care
- Always Faithful Dog Training
- Merle Norman Cosmetics
- Young Rembrandts
- Chem-Dry Carpet Cleaning
- Brazzen Rural Products
Do You Need Savings or Additional Income to Live On While Starting Your Franchise?
Making money from a franchise doesn’t take long at all if you buy a business that is already generating cash flow, net profit and has working capital and still has potential for a big upside. But if you didn’t get this type of franchise, you would need money to live on before your franchise starts generating money.
Do Franchise Owners Have to Work?
When it comes to running a franchise, you are actually the business owner and you can hire people to deliver the service or sell the products; you don’t have to do all of that by yourself.
Can You Buy a Franchise Without Liquid Assets?
Your own contribution is a requirement when it comes to franchising, and it often renders many entrepreneurs incapable of having access to funding. The requirement is usually that the potential franchisee provides a certain percentage their own contribution towards the setup costs of the franchise business and then the balance of the setup costs is financed.
But what happens if you do not have access to sufficient capital in order to provide the required own contribution? Here are methods you can leverage on;
- Soft loans
- Taking on a business partner
- Joint venture agreements
What Franchises Make The Most Money?
- Technical consulting: These franchises have an investment in the $60,000 range, and top 25% of franchisees earn over $600,000.
- Senior Care: Senior care is a very hot market right now, and there are single senior care territories doing 30 million dollars a year. Some brands have single unit averages of over 1.5 million dollars a year.
- Staffing: Average revenues in one system are over 6.4 million dollars.
- Cleaning: Several cleaning franchises have average revenues of over 1 million dollars a year.
- Cleaning master franchises: This is a relatively unknown niche, and it is where owners obtain cleaning contracts, then sell the contracts to franchisees for amounts ranging from $1,000 to $10,000. Some systems see an average of 2.4 million in average gross revenue.
- Food franchises: There are some that, for a reasonable investment, can generate million dollar revenues.
Should a Franchise Ownership Be Your Main Source Of Income Or a Supplement to Your Current Income?
Something that is possible with franchise ownership that may not always work with a start-up business is the ability to maintain your career while you run your business. But as with other businesses, it is not safe to make your franchise your main source of income because the business is still upcoming. The franchise needs to acquire a solid financial base before you start heaping financial burdens on it.
What Franchise Can You Buy for $10,000?
- MOMLETA (Baby Boot Camp)
- Coffee News
- N2 Publishing
- POOP 911
Is It Wise to Operate a Franchise Business Yourself Or Hire a Manager?
This should depend on your abilities and capabilities to run the business. If you have the time and skills, you should by all means operate the business by yourself. But if not, seek a manager. But as your business grows, know that you will need some help. You can’t do everything by yourself.
Is It Possible to Set Aside Old Habits and Beliefs to Follow a Franchise System?
Yes, of course. If you really want the franchise bad enough, you’d do all it takes to make the business work out. And who says you cannot change old habits and mindsets?
What Does The Franchisor Use In Supporting Franchisees, Is It Continuing Royalties Or Initial Franchise Fees?
Ongoing Royalty payments are typically paid to the franchisor to stay current on technological advances, as well as to enable the creation and marketing of fresh products and services. Also, these payments are used to pay expenses that are incurred at the franchisor’s headquarters, such as rent, utilities, and employee compensation.
Recurrent royalty fees are contributions made to the entire organization. The payments are used to maintain the system and ensure that all avenues flow smoothly between the franchisor and franchisee.
How Can You Get a Million Dollar Business Loan?
Banks, credit unions and online lenders frequently offer loans up to $1 million to established businesses. The Small Business Association (SBA) also backs loans of $1 million, but to apply for funding, you will need to submit an application through an SBA-approved lender.
Do You Want to Buy a Franchise But Think You Can’t Afford It?
It is possible not to be able to afford a franchise. Most experts recommend that a prospective franchise buyer brings to the table 20% to 25% of the total investment for their franchise. As an example, if you only have $60,000 to invest, you shouldn’t consider anything over $200,000. For your investment budget, that would be considered a high-capital franchise.
What Support Does a Franchisor Offer?
- Financial Assistance
- Selecting a site
- Initial training
- Ongoing Training
- Guidance, support and assistance
- Marketing and advertising
- An all-inclusive programme
- Reducing Supply Costs
What are the Top 5 Franchises?
- The UPS Store
- Hampton by Hilton
What Kind Of Continuing Support Does a Franchisor Provide?
The range of ongoing support may include monitoring the progress of the business by reviewing financial and other data provided by the franchisee and by regular contact with the franchisor. Some franchisors provide ongoing support with back office functions such as invoicing and credit control.
Franchisors may provide support to franchisees with customer leads or provide a central call centre. The franchisor can also provide support with social media and online marketing.
What to Do If a Franchisor Turns Down Your Great idea for Changing the System?
Most franchise agreements give franchisors the power to change things, but not all franchisors do that. In this case, you can’t do much because you signed the agreement to abide by their terms. You can opt out if things don’t seem to go the way you envisaged initially.
Can I Sue My Franchisor?
On one hand, the answer is yes; you can sue anyone for anything at any time – it doesn’t mean you’ll win or that the case will go anywhere, but you can. If your franchisor doesn’t perform as promised or if you later feel you were lied to or misled, it’s likely that your only recourse will be to hire an attorney and file an expensive lawsuit.
What Happens to Cash in the Bank When You Sell a Business?
The terms of the sale agreement should specify what will happen to the cash. Cash is an asset of the business, just like inventory. Cash in the bank belongs to the business, so technically it belongs to the new owner, however at closing there will be an accounting done by the lawyers. The result of the accounting will determine where the cash goes.
40. What is the World’s Largest Franchise?
McDonald’s is the world’s largest franchise network with an incredible $89 billion in global sales. Despite increasing competition, it has held on to this spot every year since the rankings were first released in 2000. To put this size into context, it is larger than KFC, Subway and Burger King combined.