Franchises. They’re everywhere and that’s the whole point. If a company wants to grow, but doesn’t have the capital to open as many stores as it may like, it can sell rights to use its concept to individual investors who hope to gain success with a proven concept. This week attorney John Lewis walks us through the ins and outs of franchising and we give you some information on what it would take for you to open your own restaurant.
That’s a franchise?
Franchising isn’t limited to fast food. Hotels, cleaning services, oil change shops and a whole lot more provide a multitude of possibilities for entrepreneurs.
Take Quaker Steak and Lube. These restaurants sell wings and burgers, among other things, with a motorsports theme. Entry price: $60,000.
Is real estate more your speed? You can be a home inspector with National Property Inspection for a up-front cost of about $40,000 and an 8 percent monthly royalty. Want to sell real estate? Electronic Realty Associates (ERA) can set you up for an investment of $48,000 to $210,000 and a 6 percent royalty.
Are you good with your hands? Maybe Handy Pro will nail it for you. Your starting investment is $49,000 to $68,000 with a 6 percent royalty.
Is beauty your place to shine? Try Waxing the City. About $117,000 will get you in the door and full treatment will rip 5 percent of your coverage.
If you like toolin’ around in a truck, a Snap-On Tools franchise may be appealing. To get behind the wheel, you need $172,000 to $375,000 and $125 a month as a franchise fee. For that, you get the right to buy tools at discount prices and resell them for whatever price you choose. You can buy or lease your van and, of course, the company can help you finance all of this.
A Circle K convenience store buy-in is $211,000 to $1.6 million with a royalty of 3.7 to 5 percent.
You can clean up with a Molly Maid franchise. For $86,000 to $130,000 you get the right to your mop and bucket with a 3.5 to 6 percent royalty.
Of course, all of this is very simplified information and, as John told us, be sure to get a complete copy of the franchise’s disclosure documents and read them very carefully.