Franchise

4 Reasons Diversifying Your Portfolio With A Franchise Can Help Preserve Your Finances In The Long Run

Franchise ownership has long been a popular wealth-building strategy among Americans. It provides the advantages of owning an income-generating business while avoiding the risk of launching an independent start-up.

I have four key aspects of the franchise model which make it an ideal long-term alternative for diversifying and preserving your assets, even during times of high inflation or market downturns.

Amazing ROI Opportunity

To combat inflation, your investments must outperform the market. The greater your returns, the more protection you'll have against unavoidable cost increases, especially during periods of higher-than-average inflation. Even with high-yield savings accounts and CDs yielding far below 2% interest, these options will only keep you afloat at best.

Depending on the franchise and the amount of your investment, the typical return on a franchise investment makes it a strong option for wealth building and inflation protection. Furthermore, these businesses have a reasonably quick time to profitability. As a result, in a relatively short time, you may begin to improve your portfolio or utilize the extra money to enjoy more freedom sooner.

Other alternative investments may have comparable ROI potential, but they are riskier and have hold times of five to ten years. That's a long time to have to wait for results.

Diversification That Is Recession-Resistant

Investing in franchises diverts your money away from market ups and downs, lowering your risk while delivering consistent, dependable income year after year. This allows you to capitalize on favorable market conditions while relieving the financial path during a market downturn.

For numerous reasons, franchises are a recession-resistant investment. For starters, they are frequently service-based enterprises. When a company meets a basic consumer need, such as auto and home repair, personal care, waste management, healthcare, or education, it can weather a recession more effectively.

Additionally, franchise businesses do not "go it alone." They benefit from a tried-and-true management and operating approach, as well as a franchisor who has a vested interest in their success. This additional level of assistance can help franchise owners in navigating difficult economic times.

Inflation Protection That Is Dependable

Because franchises are based on products and services, they provide some inflation protection. As the cost of products and services grows, business owners can raise their prices accordingly. Despite inflation, customers will continue to come through the door since franchisees provide essential needs. Revenue for these businesses may grow in some situations during periods of higher inflation.

Compared To Typical Start-Ups, Franchises Are Less Risky

Starting a business is an excellent way to take charge of your financial destiny. It enables you to create a supplementary income source while also protecting against inflation.

Franchise investments eliminate the headaches of starting an independent business. They run according to a well-established franchise plan with carefully laid out marketing, operations, and financials. As a result, the tried-and-true framework can assist business owners in avoiding "reinventing the wheel." This can lower the risk for new entrepreneurs.

Now that you understand why franchise diversification works, what’s next? Should you scale wide or go deep? Here’s a breakdown.

If you would like more information about the importance of portfolio diversification and the benefits of franchise ownership, please schedule a call here.

Are You Retired But Want An Additional Income Stream? Franchising Could Be Your Best Opportunity

Retirees today are active and energetic. You’re ready to leave the monotony of everyday corporate life, but you still want to keep your mind engaged and find an additional source of income to supplement your retirement assets. So, what comes next?

Believe it or not, there are several rewarding and profitable opportunities after retirement. You can still find time to travel, play golf, and do everything else you've always wanted to do in retirement.

For retirees, franchising provides excellent business opportunities. You may reinvent yourself without the hassle of re-entering the workforce or building a business from scratch by investing in an absentee or semi-absentee franchise.

You can enter into an established business model with the necessary training, support, marketing, and branding in place. When it comes to franchise ownership, there is less risk involved, making it a safer and easier option.

With your franchise, you can utilize your previous experiences and apply them to your business. Soft skills, such as communication, problem-solving, and connection building, are more important than specific market knowledge in running a franchise. You also have the option of changing industries and doing something completely new.

You might think that operating a franchise will take more time and effort than you are willing to dedicate in retirement. However, you may be surprised to learn that many franchisors have built their business models to allow absentee or semi-absentee ownership. When it comes to the actual work, you can be mostly hands-off.

There are almost no limits when it comes to franchising options. You'd be surprised at how many industries allow absentee and semi-absentee ownership. Here are a few examples:

Boutique fitness franchises
Personal Care franchises
Children's Education or Well-being franchises
Laundromat
Salon franchises
Home Service franchises

Working on your own terms after retirement is not only possible but, with a franchise, might be the perfect fit for you. Imagine fulfilling your retirement dream of traveling the globe while operating your own business. It’s never too late to make your retirement goals a reality.

Are you near retirement and interested in an additional revenue stream? Please schedule a call here.

This Boutique Fitness Brand Is Making The Competition Sweat…And Its Members

The fitness business is one of the most popular franchise opportunities. As of January 2022, there are approximately 106,000 club and boutique fitness franchises in the U.S. In addition, the fitness franchising industry reached $33.25 billion in overall market size in 2021. That's incredible!

This franchisor established the hottest new global fitness community through decades of experience. In a dynamic group atmosphere, they've blended scientifically proven training methods that are guided by accredited instructors.

They're searching for owner-operators who wish to work hands-on in the business or entrepreneurs who want to generate new revenue by assigning studio managers on their behalf.

From a franchisee's perspective, here is what I love about this type of franchise:

It fills a gap in the marketplace.
Executive model/semi-absentee.
A scalable, high-value proposition with a reasonable price point.
Membership-based.
Recurring revenue with a straightforward, manager-operated business model.
Minimal staff.
An 8-week progressive training model.
No need for specialized employees. The instructors incorporate scientifically proven techniques.
130+ locations open globally.

Boutique fitness franchises have experienced trainers, high-quality facilities, and motivation for individuals who want to improve their overall fitness and health. The community that these franchises create is one-of-a-kind, making franchise ownership both rewarding and fun.

Boutique fitness studios have gained traction in both the fitness and franchise industries, providing customers with a high-quality experience and the power to improve their health and fitness that big-box gyms cannot provide. In addition, these smaller studios have become a sanctuary for members looking for a more personalized and concentrated training as well as a home away from home.

Trainers are more hands-on and active in member growth. This individualized approach fosters a feeling of community among members, resulting in excellent retention rates.

Big-box gyms may have ten times the equipment as smaller studios, but they often fail to engage members as effectively or inspire the same excitement.

So, why should you choose a boutique fitness franchise over a big-box gym? Aside from the decreased overhead and investment level, there is also the feel-good factor. People are drawn to the communal atmosphere and the ability to make others feel better about themselves.

Find out how to join this highly-successful international brand with a franchisor that has proven to be a leader in the industry. I look forward to sharing more over a conversation with you.

If you’d like to begin your journey to fitness franchise ownership, please schedule a call here.

When Should You Expand Your Franchise?

When deciding to launch your next franchise location, there are a few key indicators you should look for. It takes more than a desire to generate more money to expand your franchise business. You should verify that your product has a large enough consumer base and a strong enough demand to make the new location a success.

Important Factors to Consider

Extending your franchise business is a significant step. However, you should first consider these factors:

Is your existing location's consumer base too large for your personnel to handle?
Is it possible to accommodate the overflow by simply expanding the size of your business?
Is your consumer base substantial enough to justify a second franchise location?
Have you decided on a location for your second business?

Below is a list of key variables I assembled that can help you determine when to launch your next franchise location and assure its success.

1. You Have Many Loyal Customers

If you have a significant number of regular, loyal customers and your candidate base is growing, it suggests there is a steady increase in demand for the product or service you offer. Repeat consumers are essential to the success of any franchise. When you observe a consistent, recurring revenue stream year after year, it's time to think about building a second site.

2. Customers Frequently Inquire About The Possibility Of Opening Another Location

If numerous candidates who regularly spend money at your existing site ask when you're going to establish a second location, it's time to expand. The ability to better serve your consumers should be the driving force behind your expansion goals.

3. Your ROI Is Increasing Consistently

If your present franchise's earnings are continually improving, it might indicate that the market is ready to support your expansion into a larger or second location. Short-term success should not be used to make this decision. However, if your candidate base, sales, and profits consistently grow over time, expanding into a second site might be a profitable business option.

4. Your Franchise Is In A Rapidly Expanding Industry

Examine the trends in your industry before opting to open a second location. For example, if your study indicates that your field is expanding, now could be the time to create a second site. By adding another location, you can enjoy profitable short-term rewards and enhance your franchise by offering additional items or services to candidates.

5. Your Current Location Is Overwhelmed

If your franchise is drawing far more business than it can manage in its existing location, it may be time to expand. Don't wait until congestion or extremely long wait times for service begin to damage your business. Take action if extending franchise operations to a second site would help you manage consumer demand better and even attract new consumers.

6. You've Done Your Due Diligence

Opening and operating a second franchise location involves financing, franchisor consent, necessary structural adjustments, and an assessment of growth possibilities and potential liabilities. If you've done your homework and your calculations show that the outcome of an expansion is overwhelmingly positive, it's time to open a second location and grow your business.

7. You Have The Necessary Skills, Abilities, And Resources For Growth

Developing and expanding a business involves a distinct set of skills, abilities, resources, and opportunities. Examine your business's performance, candidate base, and prospective market size and share. If they are all in your favor, then it’s time to expand into another area where new candidates are eager to spend money with you.

8. You've Put Together a Great Team

Running a profitable and effective franchise takes a collaborative effort. You must have a staff with which to share the responsibility of operating two business locations on a daily basis. If you have a team that possesses the knowledge, concentration, vision, customer service, and time management abilities required for the success of a second site, you are ready to expand.

Are you ready to expand your franchise? If so, please schedule a call here.

See How My Candidates Are Enjoying Entrepreneurial Freedom

In today's economy, franchise opportunities are endless. Close examination reveals, however, that not all franchises are created equal.

There are numerous benefits to working in the franchise industry, including some brands that have been resistant to recessions, have lower start-up costs, and some with little overhead. You may benefit from a higher quality of life with the ability to work your own hours and make your own decisions.

Many of the franchisees I've worked with have succeeded, and I'd like to tell you about one of them. Michael C. is someone I'd like to introduce to you. His thoughts are below.

Question: What were the top three things you were looking for in a business?
Answer:

Profitability
Franchisor support
Something I would enjoy being involved in

Question: Did you experience fear or hesitation?
Answer: Yes, when I ran the numbers and saw the financial commitment and potential for loss. I made the numbers as conservative as possible to see if the model was still profitable.

Question: How valuable did you find talking about with franchise owners?
Answer: I listened to every validation call I could and found it extremely useful.

Question: Did you feel well-equipped at the start of the validation process?
Answer: I felt reasonably well-equipped, especially after buying and reading a couple of books (and working with my consultant).

Question: When did I know this was the right franchise?
Answer: After becoming aware of how thorough the support was from the franchisor.

Question: Do you think you would have found this business without my help?
Answer: No. It was not on my radar for some reason.

Question: What did you think about the unique perspective I gave to you being an experienced multiple-unit franchisee?
Answer: The track record of having been through this with multi-franchises (Ryan introduced me to) helped give me a full picture.

Question: Now that you have gone through my process, what advice would you have for someone that is thinking about owning a franchise?
Answer: I would advise them that since they are making a huge, possibly life-changing decision, do what I did, research, buy/read books, talk to knowledgeable people, investigate the company inside out, read key documents (e.g., FDD), listen to any/all validation calls, run the numbers.

Let me help you find your path to franchise ownership. Please schedule a call here.

Franchising 101: What is a Franchise Consultant?

For many of us, the idea of owning our own business and enjoying the freedom and independence it can provide is a worthwhile goal to strive for. However, you may get frustrated with the amount of work required to search for just the right fit for you.

A franchise consultant can provide invaluable assistance and experience to those looking to invest in the “right fit” franchise model.

I'd like to share essential information and provide you with more knowledge on what a franchise consultant does and how one can help when you are looking for the right brand for you.

What Exactly Are Franchise Consultants?

A consultant is someone who provides advice or knowledge in a specific area. A franchise consultant is essentially someone who guides you through the twists and turns of the franchise industry and advises you on how to navigate it.

If you are unsure of what you want, how to get there, or where to begin, a franchise consultant can help you define all of this and more.

What Does a Franchise Consultant Do?

Franchise consultants will meet with potential buyers to explore their interests and talents to select the ideal type of franchise. They assist at every stage of the process, from establishing their interests to directing them to suitable opportunities.

What Qualities Should You Expect in a Franchise Consultant?

Franchise consultants should collaborate directly with you. They should begin by examining your goals, learning your skills, and understanding your motivation for wanting to own a business. Next, you'll talk about your financial options and look into possibilities in your market to find the best match.

There are thousands of franchises to choose from, and most potential buyers find the process difficult. Franchise consultants are there to help guide you through the process. Here are some qualities to look for when selecting a franchise consultant.

Experience

You want to work with someone who has years of experience working on both sides of franchising, both franchisors, and franchisees. They should have prior experience as either a franchisee or as a key member of a franchisor's team. Ask for evidence of their experience.

Dedication

People will sometimes consult as a supplement to their primary business. Choose a consultant who will assist you in selecting the best opportunity and lead you through the process. They should involve help with paperwork and the initial set-up of your new business.

Their Reputation in the Industry

Their reputation in the industry is vital. You want to work with a consultant who is well-versed in the franchising world. Choose someone with a comprehensive understanding to help you choose the ideal franchise to fit your specific needs, goals, and strengths. Ask for referrals and what other candidates are saying.

Cost

Make certain that any consultant you work with is completely free. Look for an independent consultant, not one that is paid by a franchise to help recruit potential franchisees.

Quality List of Franchises

You don't want a franchise consultant to push specific franchises regardless of whether they are a good fit for you. Instead, you want someone with connections and a strong list of franchises for you to consider.

The franchise consultant should have diverse contacts for all types and sizes of investments. They should be well-versed in each, having conducted extensive research, including reviewing their Franchise Disclosure Agreements. You want to be certain that you are investing in something you can completely believe in.

Remember that the purpose of a franchise consultant is to match you with a brand that suits your requirements, goals, and talents.

If you’d like to find out how I can help you find your franchise match, please schedule a call here.