Many first time entrepreneurs feel that the added expense of franchise royalties will cut into their profits and make the business less attractive than if they were independent. The attached chart shows the impact a good franchise has on sales and profits.

Grand Opening Sales (and resulting profits) are usually higher for a franchise unit than an independent. After that, sales grow more rapidly thanks to a proven marketing plan, advertising programs that work, and help in choosing the right site for the venture. The franchise’s training keeps the neophyte from going down many “dark alleys” that consume cash, time and energy. In addition, you gain name recognition and discounts on equipment, inventory and supplies—all adding to your bottom line. Over time, the independent business never catches up! If you don’t have at least five years’ experience managing a business similar to your new venture, a quality franchisor will be worth its weight in gold!