Its Better To Pay Franchise Royalties Then to Go At it Alone
|
It is actually something I have wondered. I’m sure most other people have had the same question:Do I have a better shot at higher profits through a franchise or from doing it on my own? Mostly, the fear comes from paying out franchise royalties. Jim Deitz puts it perfectly in his Franchise Doctor’s Blog: 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! |
Information Request Form
Please fill out the short form below to request more information on this opportunity.Submitting this form creates no obligation upon you, it is only a request for additional franchise/business opportunity information.
*Required Fields Have Red Stars
At USFranchiseNews.com, our goal is to provide you with a wide variety of possible franchise and business opportunities. By submitting your information, you agree to the terms of our Privacy Policy.






