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Most people think that they can only dream of becoming their own boss, starting a small business, and the prospects of growing and expanding. The reality is that the only way to accumulate wealth and secure a financial future is to become a business owner. Once you decide to leap into business ownership, that is just the first step. Next, you have to consider what types of industries, business model types, and opportunities are available to you. 

You can choose a new business startup, or you can opt for buying a franchise. Both come with their advantages and disadvantages. The key is to minimize risk while maximizing the potential for success and profitability. So which one is right for you?

What is a Franchise?

Unlike small "mom-and-pop" startups, a franchise is a business method that helps to expand an existing business by providing goods and services through a licensing relationship. 

Franchisors grant a license to a third party to conduct business under their trademark and trade name, and typically, they also offer things like operating systems help, support, branding, and other perks that make it easy to get the business up and to go and to help sustain its success for those who buy-in.

Business Format - Franchising

In terms of relationships in franchising, there are two types: business format and traditional or product distribution. A business format franchising method is where the franchisor offers the franchisee their trade name, services, and products and usually has an entire system to help operate a successful business. 

The franchisor also offers things like site and real estate selection, operating manuals, brand standards, training, development support, marketing and business support, and quality control measures to help get the business up and running and make it sustainable and profitable for the future.

The franchisor hands over the "keys to the kingdom" of success. Currently, there are over 120 industries that use business format franchising to take their product or service to market, including automotive, education, logging, commercial and residential services, retail food, senior care, medical services, restaurants, and real estate.

A traditional or product distribution format typically has higher sales than a business format. The focus on product distribution is not directly related to doing business but rather on the products supplied or manufactured to the franchisee via the franchisor. The products usually need pre-and post-sale service, as in the automotive industry.

Three Benefits of Buying a Franchise

When it comes to wealth accumulation, the only way to truly get ahead of the curve and stop spending your time helping someone else's fortune grow is by becoming a business owner. A new business startup is a risky proposition. When you consider that, on average, 20% of all new businesses don't make it to their second anniversary and that 45% of them won't make it to the five-year mark, opening a startup business can appear very challenging. Also, when you consider that about 65% of companies won't make it to ten years, the decision to be a business owner can be fraught with fear and trepidation.

 

Proven Systems/Business Models

The most successful franchise owners recognize that they may have to get their hands dirty and get to work until things pay off. If you understand that the fruits of your labor will take time to grow and ripen on the vine before being picked, you are m

Franchises differ, however, primarily because although they are technically a "new business," there is nothing new about them. A franchise is built on a proven business model that also comes with the perks of brand recognition and brand loyalty. Franchises have less risk compared to new business startups, which also means that the average person is more likely to be able to secure financial resources for a franchise as opposed to presenting a new business model to a lender or investor. 

There is also no required learning curve. When starting up a new business, you often have to be very well-versed in the industry and have the experience and expertise to guide the company while also working in it. Franchises do not require that you have any experience at all in the given industry you choose. You are handed all the knowledge you need before you even begin the process, which means that you can switch gears from your previous career and hit the ground running with a high likelihood of success.

For a new business startup, you can't wholly switch paths and start a new venture without becoming an expert. With a franchise, however, all the knowledge you need to run it successfully is given to you; all you have to do is follow the guide as outlined. You are almost guaranteed success without having any real hands-on training or education. It is an excellent way to find something you love to do without all the work of getting up to speed or attending extensive educational training.

In Business for Yourself, But Not by Yourself!

Often, when you begin a new business venture, you do so on your own, and it becomes an issue of making it or breaking it. A new business model, idea, or concept does not come with the guidance of those who have come before; it is a constant road of trial, error, and hard work. However, when you buy a franchise, you're buying the help and support of those who have already been there and done that. That means that you aren't reinventing the wheel; you are just picking up the playbook and putting it into motion. 

Real estate advice, construction plans, employee training, marketing, promotional tools, systems, and operations are already at your fingertips. That increases the probability that you will be successful; it reduces the risk that you won't. Buying a franchise also means that you can start making money from day one because you will be ready to go from when you say you're open. And people will be anticipating your new business because they already know who you are. They can depend on consistency and reliability. They recognize your product or service from the outset.

The Growth Scalability

Growth scalability is also a huge advantage of becoming a franchise owner. Multi-unit franchisees are a great way to continue building your wealth without restricting how much you can fit into one brick and mortar location or how many employees your location needs. When you own a franchise with high scalability, your potential for growth, expansion and profit margins are exponential and ever-widening. With a highly scalable franchise, the sky's the limit. 

With a scalable franchise, you also have very few expenses, including employee salaries, because most of the payroll is based on performance commission, which lowers your risk as a business owner. Unlike traditional business models where you have to pay people on a salaried or hourly basis, you only have to pay people who have already contributed directly to your profit margin with a scalable franchise. Being a business owner is further enhanced by knowing that you have less skin in the game, and you're increasing your potential for earnings with every new team member you take on.

How to Get Started Exploring Franchise Ownership - The Three Ds: Due Diligence, Deliberation, and Don't Go It Alone!

If you are ready to become a franchise owner and enjoy the benefits, the next step is to explore the available opportunities. If you head to the internet to see what is open, you will quickly be overwhelmed by the hundreds of thousands of choices. Although franchises have a higher likelihood of success than traditional startup businesses, that does not mean that they are all right for everyone or that everyone will be successful with every franchise. The Three Ds is the most crucial step to finding the right franchise for a satisfying and lucrative new venture.

Due Diligence

One of the best parts of buying a franchise is knowing what the future will probably look like. Franchises have to file a franchise disclosure document, which the Federal Trade Commission requires. This document is generated annually to explain in detail the terms for owning a specific franchise. It is critical to go through the FDD with a fine-toothed comb - or even better, to hire someone who understands the legalese and what it all means. 

You will want to pay close attention to things like startup costs and ongoing expenses and weigh them against the potential revenue that the business can generate. Also, consider how much support the franchisor will supply to you both initially and then as you grow. Things like employee training and operating systems help will be critical in getting things up and running quickly and working efficiently and effectively from the start. Finally, consider talking with both former and current franchise owners to get a feel for the daily operations and the real "boots on the ground" experience.

Deliberation

Next, think about other factors outside of the franchise itself. Consider personal factors like your personality style and what you would like to do versus what you don't want. You also have to take stock of how involved your family will be and how much support they are going to provide. 

Make a list of priorities, like what types of industries you think would provide personal satisfaction and improve your work/life balance. Ask the hard questions: do you want to work with customers and be the face of the company, or would you rather be behind the scenes? If you are going to buy a franchise, it will take a lot of your time and energy at the start to get it up and to run. How much time are you willing to sacrifice, and what can you live with and can't you if you have to?

Don't Go It Alone

One of the keys to being a successful business owner is learning how to delegate, whether in a traditional startup or a franchise. If you focus your energies on what you do best and let those who are well-versed handle the rest, you won't be spreading yourself too thin, making decisions without having all the information you need, or going outside your range of expertise. The first business decision you will face is finding the right franchise to buy, then taking all the proper steps to minimize risk and maximize wealth accumulation and work/life satisfaction. 

There is no need to dive headlong into figuring out the ins and outs of franchising opportunities, the legalities behind them, or sorting through the many steps you have to take and consider when there are franchise experts like Frannexus there to help. We have been through the process hundreds, if not thousands, of times and dealt with people from all walks of life who have different life circumstances, resources, and ideas about what their goals are going forward. The worst thing you can do is try to go it alone, especially when you don't have to!

Conclusion

When it comes to securing your financial future and building wealth, not just for the here and now but for generations to come, business ownership is truly one of the only ways to get ahead. Franchising is one of the least risky and most rewarding ways to find satisfaction in what you do while reaping all the benefits of freedom and security that come with being your boss. 

At Frannexus, we have all the tools and resources you need to make the most well-informed decision about which franchise has the highest likelihood for success and which one will be rewarding, scalable, and provide you with the rate of return you seek. The statistics are clear: a franchise has a higher likelihood of success than a traditional business startup. There is also a potential opportunity for anyone looking to secure their financial situation. Contact us today to get the process started, and let's find the perfect fit for your new and lucrative future!

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Overview

As we head into a post-pandemic economy, tensions about social distancing are starting to ease. Whether it will be a thing of the past or develop some hybrid of how it used to be combined with social space awareness remains to be seen. One industry hit hard by the pandemic is the food and hospitality sector. Some restaurants were forced to close their doors, while those who pivoted to alter their offerings and processes could stay afloat. Some even thrived in a new age of entertainment and dining.

Statistics about Restaurant Franchise Outlooks

According to leading forecasters, 2022 will be marked with numerous economic challenges, including the restaurant industry. Issues such as supply chain difficulties, frequent COVID infections still taking people from work, and the overall labor shortage and "Great Resignation" are all taking their toll on society as a whole and are being felt in the hospitality industry. 

There are also concerns that the shortage of available goods will drive inflation, leading to a downturn in the economy, and will likely plague the U.S. at least through 2023. In turn, inflation will make grain and beef products cost approximately 60% more than last year. The consumer will eventually absorb those increased costs, which will likely cut back and choose to prepare meals at home.

For restaurants to remain profitable, they must find new menu offerings with fewer choices and higher prices. Currently, consumer prices are already up an estimated 4%, which is an increase that we have not witnessed in nearly a decade.

The good news is that although costs are climbing, consumers are so happy to return to engagement with the outside world that they are willing to shoulder the increased costs. Despite the new COVID variant issues and other economic uncertainties that plague the U.S. and the world, consumer spending is beginning to rebound. 

The biggest hurdle at the moment is the labor shortage. Some workers laid off during the pandemic enjoy the Pandemic Unemployment Assistance that allows them to stay comfortably at home without returning to work. Many restaurants have offered incentive programs like higher pay and more considerable perks to get workers to return. However, those costs will eventually come down the pipeline and fall on the consumer. Labor costs currently are at a 20-year high. Combining that with the inflation rate equals higher menu costs, and how consumers respond is uncertain. 

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Donuts have been around as long as apple pie and baseball, and Americans can’t seem to get enough. Donut stores' market share in the food industry is over $7 billion, with nearly 14,000 various businesses, and will continue to grow 5.47% in 2021. As we head into a post-pandemic economy, sales of donuts are forecasted to grow. If you are looking for a franchise opportunity, the Donut Experiment might be your ticket to financial freedom and wealth accumulation. Unlike other donut giants in the industry, there is still plenty of uncharted territory for owners to claim!

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Staying fit never goes out of style, and Americans are particularly drawn to group-based workout opportunities. One such activity that has gotten a lot of attention in recent years is pilates, thanks primarily to the interest of a whole host of public figures. Entertainers and athletes swear by the exercise, with everyone from Madonna to Jennifer Aniston, to soccer player Cristiano Ronaldo and Pittsburgh Steelers wide receiver Antonio Brown, touting pilates’ benefit. Created in 1926 by Joseph Pilates, the popularity of Pilates among fitness enthusiasts has skyrocketed in recent years, with spin-offs and adaptations popping up to the original 34 exercises. Today, the market for pilates studios continues to grow. Today’s market is worth $12.8 billion, and it is projected to have an annual growth rate of 11.7% through 2025. 

If that isn’t reason enough to consider a future as a pilates franchise owner, think about this: Currently, about 9 million Americans practice pilates. A BODYBAR pilates franchise can help you capitalize on that potential with a business that offers an anticipated return on your investment in less than three years, in addition to a predicted profit margin of 30%. And most studios achieve profitability in as little as three to six months.

Best of all, a BODYBAR pilates franchise doesn’t require you to have any fitness industry experience. All that is needed is a passion for fitness and a desire for a flexible, empowering career. Whether you are an existing business owner or have always dreamed of owning your own business, investing in a BODYBAR pilates franchise may be the answer you have been looking for to achieve your financial and business goals.

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Remodeling a home’s kitchen is at the top of many homeowner’s wish lists. According to research conducted by Statistica, the most popular reason given by 37% of homeowners for why they are finally embarking on this type of renovation is having the funds to do so, according to research conducted by Statistica. But this is not an inexpensive update. Houzz.com reported that the median amount homeowners spent in 2020 remained stable at $35,000.

With home improvement booming in general in 2020—spending grew by nearly 3% to $420 billion in 2020, per a recent study by Harvard University's Joint Center for Housing Studies (JCHS)—the time is now to get in on this lucrative franchise opportunity. Especially since researchers involved in that study expect the numbers to climb an additional 4% in 2021.

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By 2025, the worldwide market for all things beautifying will increase even more, to an estimated $758 billion.

According to a recent report, there are significant opportunities in this rapidly growing market for lash extensions. Lash extensions appear to impact mascara’s sale, with several major makeup collections not even including the once-beloved product in their initial offerings. CNN.com reported that between 2016 and 2019, sales of false lashes and related products (kits, glue, and applicators) increased by more than 80% to $313 million in annual sales. What’s more, lash extensions are excellent repeat business. According to The New York Beauty Institute (NYBI), the average lash extension customer will return to their preferred salon every four to six weeks for a new application. 

Savvy entrepreneurs understand the importance of seizing an opportunity of this magnitude. Now is the time to invest in a franchise with a premier position in this burgeoning industry, The Lash Lounge. 

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As we head into a recovery phase after the pandemic, many are considering the prospects of switching gears and trying something new. The only real way to start accumulating wealth is by going into business for yourself - but start-ups can be risky. A franchise like FocalPoint Business Coaching might be your ticket to financial stability and personal fulfillment.

According to statistics, business coaching has been an $11.6B industry just in 2021. The annualized market growth is somewhere around 1.2%, which means it is accelerating faster than the overall economy. The business coaching industry is the 9th ranked Educational Services industry and the 474th largest industry in the nation by market size. Factors driving the industry are a growing life cycle stage and an increasing number of households in the US making more than $100k.

Life coaching is currently the second-fastest growing industry around the globe and increasing annually 6.7%, with an estimate of nearly 8 million coaches presently practicing in the United States. And the demand for life coaches is anticipated to climb at a rate of almost 5.5%. The market value will reach $1.34 billion by the year 2022. 25% to 40% of Fortune 500 companies insist on executive coaching as part of their promotional opportunities for best performers and top earners.

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The average person is living much longer than they did just a decade ago - which is fantastic, but it is also putting some strain on families caring for their aging parents and loved ones. According to statistics, In-Home Senior Care Franchises totaled $12.4B in 2021, with a market growth of 6.5%. That means that the total market size of In-Home Care Franchises grew faster than any other business franchise overall. 

Another factor driving the need for In-Home Senior Care is an advanced push to move more patients from a hospital to home healthcare. The number of adults older than 65 will continue to grow steadily over the next decade due to advances in medical care and living standards. Senior care began its sector growth as far back as the 1960s and has grown substantially. As the government’s assistance with Medicare and a health campaign focused on awareness from the National Institute on Aging began to increase, so did the life expectancy of those living past 65 years old. 

Home healthcare is currently the most significant opportunity for the senior care franchise industry, be it medical care or non-medical care services. Non-medical assistance involves helping seniors with everyday living skills, chores, taking medication, and being a companion. ComForCare is one of the leading franchises for both medical and non-medical home-based senior care. Overall, the United States home care market is anticipated to grow to $225B by 2024, meaning there will be endless opportunities for those looking to enter the in-home care services market. AARP reports that the total senior population will increase by over 21% by 2050, which will only further increase the need for senior home care. 

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Ask most people if they would like to have a cleaning service handle the scrubbing, dusting, and vacuuming around their homes, and the odds are strong that you will get an enthusiastic “Yes!” People’s interest in hiring someone to handle their housework is a big reason why the residential cleaning business is doing so well. IBISWorld reports that the U.S. market size for residential cleaning service franchises will hit $899.9 million in 2021.

The growth potential in this industry is on an upward trajectory, with an anticipated 10% increase in business by 2026. Currently, about 1.7 million people are employed by the industry. Still, unlike some businesses, turnover is very low—only about 2%—with an anticipated 6.6% job rate growth every year for the next five years. What all these numbers translate to is a great franchise opportunity.

What’s more, the number of households interested in a residential cleaning service is expanding. Residential cleaning services are no longer viewed as a luxury by many Americans but as a necessity. You can capitalize on this and realize your dreams of owning your own business when you invest in a Molly Maid franchise.

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As we roll into 2021, hoping that things will return to pre-pandemic normalcy soon, many workers are not ready, nor willing, to go back to the daily grind. That is leaving people looking for other opportunities like small business ownership. But if there is one thing that the past year has taught us, life can be very unpredictable, and with uncertainty comes inherent risk, especially if you are building a company from the ground up. Franchising is an excellent way to reduce your risk while still taking the plunge to work for yourself, but not all by yourself. What do I mean by that? (more…)

Finding a franchise to purchase is only the first step in the process of becoming a franchise owner. Most people decide that franchising might be an avenue they are interested in exploring and get on the internet to find out that there are over thirty-six hundred different franchising opportunities available. That can be very intimidating for someone looking to invest. And when there are that many choices, the gravity of choosing can often leave people feeling paralyzed with indecisiveness. 

Not all franchise opportunities are suitable for everyone, but how do you go about weeding through the many thousand to find a good fit? That is where I come in. My job is to help guide you through the process of discovering which ones will provide you with both wealth building and satisfaction. Choosing the right type of franchise isn’t just about staying within budget; it is also about finding what speaks to you personally and professionally.

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