Warning: You Have Indicated You Might Be Involved With A Traditional “Brick and Mortar” Franchise Business(Or Are Considering It).
Before you take another step in that direction you need to read this page immediately.
Whether it’s travel services, food service or professional services, child care or tax prep, nearly all traditional franchise models have a few things in common.
They are expensive
They are risky (more than 50% of all franchisees fail in less than 5 years)
They are difficult to get concrete information about before you invest (since they can’t legally discuss how much money you can make)
They have high overhead – rent, employees, insurance, and some form of inventory
They have an upfront fee AND ongoing revenue sharing to the Franchisor
They have business models that are not designed to be profitable for 3-5 years
In fact, most of what franchisors say to franchisee prospects about their concepts is designed to counter these arguments. How often do we hear about a “proven track record of success” or “stability you can count on”?
Franchisors know that prospective franchisees have legitimate concerns about the viability of the franchise model.
Remember… franchisors are never in the business of selling their products, they’re in the business of selling franchises.
You’ll never hear a franchisor throw pitches at you along these lines:
“Take on debt then spend 5 years paying it off so you can hopefully earn a middle class income.”
“6 figures a year is what it will cost you to keep the doors open. Hope you sell lots of stuff!”
“Our business owners work twice as hard as the people they employ.”
But in reality those would be honest pitches.
I know… I used to own multiple franchises businesses.
The details of our story don’t really matter… but since I closed our locations down we have had chance to meet with and interview over 50 ex-franchisees. At least we know we are not the only ones who struggled with the franchise model.
The stories tend to run along these lines (just like our own did)…
“It was just so much harder to make money than they made it sound.”
“I was working twice as many hours as I ever intended.”
“That bank loan felt like a prison term.”
“I was surviving, but never thriving.”
We are one of the lucky ones. We were able to shut our stores down and get out (without declaring bankruptcy!)
We did end up paying off years worth of leases we were on the hook for, plus about a quarter million dollars to the bank, but you don’t hear us complaining…
Why are we not complaining?
Because our misfortune has turned to good!
We now get to spare others the same fate.
In fact, we have made a new career out of educating others about franchising as well as alternative types of business available to prospective franchisees.
That’s why we want you to read our Special Report: Internet Secrets To Financial Freedom
It’s no sales pitch for anything… it’s just what the name says.
7 things you MUST know if you’re looking into franchising.
Just put in your name and email and I’ll send it to you with no strings attached.
* Plus you’ll get more information about the best franchise alternatives out there… Businesses that can be started with much less capital, yet often generate much higher returns.
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