WHAT DO YOU EARN? Six Tips to Achieve Franchising Results

Wed, Mar 17, 2010

WHAT DO YOU EARN?

While most people don’t like to discuss openly what they earn for a year’s work, I was shocked recently to see how little people are paid for a 2,200 hour work year.

Parade Magazine (the Sunday insert in many newspapers) recently profiled what Americans earn. If you skip the celebrities, politicians and athletes, you have a base of 124 workers. Only 33% of this group earn $50,000 a year or more and only 22% earn more than $60,000!!

A study several years ago indicated the average franchisee earns over $120,000! Naturally the amount invested usually relates to the amount earned but I’ve seldom endorsed a franchise system that provides less than $50,000 a year to its owners.

If your income is not keeping pace with that of franchise owners, its time to invest in yourself. Keep reading for some important tips on how to achieve your goal.

HOW DO YOU BUY A FRANCHISE??

Often we talk with people expressing an interest in owning a franchise who admit they “haven’t found anything that excited them yet.” This passive approach seems to leave this critical decision to Lady Luck!

The Franchise Doctor believes that investing 4 to 6 hours a week to improve your future will insure that you achieve your goal in 2001. Following our guidance, you should be open for business in 90 to 180 days–not “someday” when luck strikes, but this Summer–2001!!

The author of a book entitled “White-Collar Sweatshop” suggests that most employees’ pay raises have just barely kept pace with inflation. In addition, according to the book, companies downsize indiscriminately and the workers left behind must then cover tasks of their former co-workers. The book paints a grim picture of America’s workforce.

If this sounds like your profile, you should make the commitment to escape–into ownership of your own franchise.

Here Are Six Tips on How to Achieve Results

1. Find Your Industry Niche
Read magazines like Entrepreneur & Success looking for new concepts. Study trends in the marketplace. Discover services and products in distant cities that haven’t reached you town yet. Search local classified ads for franchises and businesses for sale. Meet with the owners to gain insight into their field.

2. Make Contact!
Some people who visit our site are afraid to give us a phone number. They seem to think someone will jump through their phone and sell them something! No salesman will waste his time pursuing someone who has no interest in his offering.

You need to meet and talk with franchisors, franchisees, independent business owners in fields you might consider, vendors and bankers. One recent franchisee met and investigated purchasing an independent business in his home town. When he discovered a very profitable venture that was greatly overpriced, he searched out franchisors who could help him achieve his goals. Ten weeks later, he’s in New Franchisee Training, as I write this edition of the Newsletter.

We’re in discussions now with several additional franchisors and we’re confident some will qualify to be added to our list of recommendations. We are also reviewing three companies that are successfully expanding by selling “Master Franchise Licenses” which give regional rights to sell units in a city or region of the country. Drop us an email if you’d like advance details about these opportunities.

Maybe you should be in Washington, DC May 18th through May 20th at the International Franchise Exposition. Over 250 franchisors will be present to explain their offerings.

Most people who buy a franchise admit that they “never dreamed” they’d be joining the field, just 90 days before they sign their license. However, after they learned the behind-the-scenes aspects of the industry, they recognized what a great match it was for their personality, skills, investment capabilities, financial needs, and lifestyle goals. Waiting for luck to strike, wasn’t in their best interest. Instead, they took charge of their own lives and invested the time needed to evaluate the opportunities available and then put their careers and capital behind their commitment to succeed.

3. Review Marketing Materials & Disclosures
Before you are allowed to invest, a franchisor must provide a federally mandated disclosure document fully explaining the offering. Contact the franchisor with questions and challenges. Call franchisees to verify their answers.

Then, catch a plane or hop in the car and go visit the company’s Headquarters and several franchisees. You don’t dare quit your job and investigate sizable sums of money without sizing up you future partner. If you haven’t visited any franchise’s headquarters, you’re not really serious about making a move. Most franchisors have special days set for meeting with potential investors–you need to take this step to insure your choice will be the best for you.

4. Based on the Data, Develop Earnings Projections
Verify that you can open and reach profitability with the amount of cash you’re willing to invest. Then verify that the future income will meet your family’s needs.

5. Reach a Decision
Choose to move ahead, or start the process over pursuing a different industry or franchise system. If you’re joining a franchise, determine you territory or select a site.

6. Sign the Agreement, Attend Training, Get Started!
These steps are explained more fully in The Franchise Doctor’s exciting book “Insider’s Secrets to Buying a Franchise.” Follow this link to explore Insider’s Secrets further. http://franchisedoc.com/insiders-secrets/buy-the-franchise-doctors-book/

The Franchise Doctor welcomes your comments: Click Here to Send us an Email or Call: 800-220-8256