Entrepreneur Sound-Off

44-Buying a Franchise--It's Not the Proven Playbook to Riches

February 02, 2023 Randy Wimmer
Entrepreneur Sound-Off
44-Buying a Franchise--It's Not the Proven Playbook to Riches
Show Notes

There is nothing more sought after than finding a roadmap to riches...Or a Playbook that guarantees you success if you just follow the checklist.  
And that is how franchisors prey on aspiring entrepreneurs!  The old saying that if it's too good to be true, then well...it usually is.  Franchise Disclosure Documents provide real up-front costs.  And these costs are usually BRUTAL.  However, people are will to pay them for the "secret roadmap to riches" because Franchise Disclosure Documents will frequently list estimated potential annual income like this 
Estimated Income: "3,000 to $300,000."
Here's the FACTS:
The AVERAGE income of all franchises is $66,000.
The crown jewels of the franchising industry are restaurants...OVER HALF of all food service franchises make LESS THAN $50,000.  I'm not going to disparage $50K, but restaurant franchises frequently require up to $1 MILLION just to have less than a 50% chance of making $50K.  
If franchises were SOOOOO profitable, why don't the franchisors keep them to themselves?  Why do many franchisors only own a few of their own companies?

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