372: Franchises 101: How to Find, Fund, and Profit from Owning a Franchise
BiggerPockets Money Podcast
BiggerPockets
4.6 • 2.9K Ratings
🗓️ 11 January 2023
⏱️ 62 minutes
🧾️ Download transcript
Summary
Want to buy a business? If so, you’ll need franchises explained. At first, franchises seem like something only for fast food, gas stations, or hotel chains. But, in reality, a whole world of businesses are up for sale that have proven track records and could put profits into your pocket faster than starting your own business. But first, you’ll need to make sure you’re ready to own and run a franchise, as it’s not always the passive income stream investors believe it to be.
When done right, franchises offer an almost irresistible offer to young entrepreneurs or those trying to escape the corporate ladder. You can trade in your soul-sucking nine-to-five, receive top-tier support and training, and get paid a salary, all while your business grows in the background. But before you start window shopping for which hair salon, water restoration, or pool cleaning business you want to own, you’ll need to talk to someone like Greg Mohr, author of Real Freedom: Why Franchises Are Worth Considering and How They Can Be Used For Building Wealth.
Greg acts as a franchise consultant, helping match potential franchisees to a parent company that works best for their schedule, goals, and income-earning potential. You may think you know how a franchise works, what type you’d like to buy, and how much money you would make, but Greg’s in-depth, multiple-decade-long knowledge may tell you otherwise. So, if you want to run a business but don’t know where to start, Greg may be the perfect person to turn to.
In This Episode We Cover
The history of franchises and why buying a business often beats building one
The true profits of running a franchise and how much an owner can expect to make
How much franchise consultants cost (much less than you’d think), and why you need one
Most common franchise mistakes to avoid and why you should never look at JUST the franchise fee
Funding a franchise and how to use retirement accounts, HELOCs, and more to buy businesses
Business partnerships and who should join forces to buy a franchise together
And So Much More!
Links from the Show
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Check Out Mindy’s 2022 Live Spending Tracker and Budget
The Benefits of Franchising vs. Starting a Business from Scratch
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Transcript
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| 0:00.0 | Welcome to the Bigger Pockets Money Podcast where we interview Greg Moore and talk about |
| 0:04.7 | franchises. So what we're looking for is really to find out what kind of a lifestyle are you looking for. |
| 0:10.8 | How do you want to spend your day? Do you like being in an office nine to five Monday through Friday? |
| 0:17.2 | Is that something you enjoy and can really, you know, wrap your mind around or do you prefer being |
| 0:21.6 | out and about more schedule, flexibility, more freedom to do what you want during the day? |
| 0:26.8 | Or if you just want to invest in a franchise, don't want to do anything. |
| 0:30.4 | Hello, hello, hello. My name is Mindy Jensen and with me as always is my one-of-a-kind |
| 0:35.0 | cannot be duplicated co-host Scott Trech. |
| 0:37.5 | Copy that, Mindy. |
| 0:40.7 | Scott and I are here to make financial independence less scary. That was a good one, Scott. |
| 0:45.5 | Less just for somebody else. To introduce you to every money story because we truly believe |
| 0:50.1 | financial freedom is attainable for everyone, no matter when or where you're starting. |
| 0:54.5 | That's right. Whether you want to retire early and travel the world, go on to make big-time |
| 0:57.6 | investments and assets like real estate, start your own business or own 100 super-cut franchises. |
| 1:03.1 | We'll help you reach your financial goals and get money out of the way so you can launch |
| 1:05.7 | yourself towards those dreams. Scott, today's show is a little bit different. First, we're releasing |
| 1:10.1 | on a Wednesday. Second, we have a bit of a history lesson about the beginnings of franchises, |
| 1:15.6 | read by our esteemed producer, Kaelin Bennett. |
| 1:18.0 | The first example of something resembling the franchise was introduced in 1731 by Benjamin |
| 1:26.7 | Franklin, who partnered up with Thomas Whitmarsh to establish a printing business in South Carolina |
| 1:32.8 | in order to print Franklin's works. The way it worked was that Whitmarsh had the right to print |
| 1:39.1 | and distribute Franklin's work, but he did this independently. Whitmarsh purchased the printing |
... |
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