Buying a franchise eliminates a lot of the hard work of finding a location, negotiate a lease, hiring staff, hiring good local contractors and doing this on time and within budget. When you buy a franchise you are buying a complete turnkey business. It is a proven system with a much higher likelihood of success. Not to mention you have a corporate image and brand behind you, training is most often provided and financing can be easier.
But going it alone can be easier than you think.
Assume you are paying $50,000 franchise fee. Take half of that and with compound interest over 20 years you will have over $200,000 to retire on. Take another $5,000 and hire a business or franchise consultant to help you build out and set up operations.
Take the 5%-7% you would normally pay in Royalty Fees and advertising contributions, assume sales are $400,000 per year, that would be $1666 - $2333 per month and invest on local promotions and media buys to build your own brand awareness. This kind of budget can go a long ways in building your brand.
By cutting out the premium you pay to the franchisor for supplies (that you have to buy from them) you can spend that money on a creative consultant to help with advertising and promotions.
Take the franchise fee you pay to renew your franchise every 5 - 10 years and invest in a consultant to help build your business further, or pay yourself a nice bonus.
A franchise is successful because of the discipline in capital requirements, operations and advertising. If you have the discipline, you can succeed on you own.
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