Month: September 2016

College v Franchise

Question about buying a franchise

With the cost of a college degree surpassing the annual rates of inflation and the job market is so weak due to a poor economy, it is no wonder why so many young adults graduate with an average debt of $30,000.  The researchers also note that student debt figures could be misleading because colleges/universities may not account for private loans students take out that the school is unaware of. Nationally, nearly 20 percent of all graduating seniors’ debt came from private student loans.

Does graduating from college guarantee you or your children a job?  Not always.  Our economy is a capitalist’s economy and if you graduate with a degree that is in low demand – those college graduates may spend the first few years of their careers underemployed or in a career outside their major.  The problem is – not everyone can be a programmer, engineer or a multi-lingual international business degree graduate.  Plus what is “hot” now may not be in demand in 4 to 5 years.

Why Franchising?  You can be anything in a franchise.  Do you have a passion for children – we have that franchise.  Do you want to be in the hospitality industry – we have that franchise.  Are your interests in helping people – we have that franchise.  Do you like working with your hands – we have that franchise too.

Is starting a franchise expensive?  It can be.  Can you get a SBA Loan to start a franchise?  Yes, you can.  If we had children that were about to go into college, I would ask them about franchising and give them a head start on their peers.  As a business person, I can see a better ROI going the franchise route in today’s economy.

I went to collegedata.com to see what the average cost of tuition, room and board, books, and incidental items were for school year 2013 to 2014 for the average state college.

Tuition                                  $ 8,893

Room and Board               $ 9,500

Books                                    $ 1,207

Incidentals                          $ 2,580

Total Year 1                         $22,180

 

Assuming 3% inflation per year

 

Total Year 2                         $22,845

Total Year 3                         $23,531

Total Year 4                         $24,237

Total for 4 Years               $92,793

 

This cost can be even higher for a private college.  Let’s take an even $100,000 for the cost of a 4 year degree.  This is a lot of money to start a franchise.

 

We have over 300 franchises we represent – from brick and mortar to work from home.  Franchise fees range from $10,000 to over $100,000 (we would not recommend buying a $100,000 franchise for a child).  So which franchise is right for your family?  What are your or your child’s interests, where do you live, what is your credit score, what franchises are available in my area that make sense, does the family have retirement funds to help fund the business, are you or your child mature enough to take on the responsibility of running a business, can you rely on your parents for support and guidance, are you entrepreneurial (we have a test for that)… There are so many questions to be answered and it this a risk you are your family are willing to take?  This is an investment.

 

Why talk to us?  Our job is not to just sell you a franchise.  Our job is to help guide you through the process of possibly buying a franchise.  We have told some people to not buy a franchise because they did not have the time, money, level of commitment, the passion, the credit score, the right market or the support to start a franchise.  Buying a franchise does not guarantee success.  You must evaluate the opportunity and identify all the risks and rewards before investing.

Owning a Low Cost Franchise

Freedom

Did you know you can own a low cost franchise business where you actually enjoy working?

Low cost franchise opportunities do exist and offer a great introduction into franchising.  These opportunities can be great for the candidate looking for something part-time, with minimal money to invest, can be a passive business, minimal or no employees and you can expand your net worth.  In addition to being low cost, some are great recession resistant opportunities because businesses need more business in any economy.

An ideal franchisee is an outgoing professional who enjoys interacting with others. You should be comfortable making presentations to small groups, organized, and upbeat. You should enjoy working with people and have a willingness to follow a proven method is a MUST.  After all you are buying a proven franchising system.

These opportunities can be run from your home office, a smart phone, iPad or tablet thus making it more affordable to get started.  Start small and grow.  All of the franchises have excellent support, cutting edge technology, some have high quality referral programs, award winning marketing programs and training to help make you successful.   All of this is included in your franchise fee.

The ideal candidate may need:

  • Solid business background
  • Sales and marketing oriented
  • Excellent communicator
  • Decision maker and problem solver
  • Relationship builder

There is a little known fact – many franchisors offer discounts for Veterans, Firefighters, Policemen, Emergency First Responders, minorities and multiunit discounts are available to those who qualify and can help stretch your investment dollars even further.

To get started, please contact us at:

1-888-246-0027 or mike@professionalfranchisebrokers.com