Retirees are wondering how to earn extra income during retirement, and rightfully so. Since we’re going to live much longer than previous generations and probably feel more motivated to enjoy life than previous generations, it stands to reason that we want to have the financial resources to do both in style! So many are thinking of buying a franchise instead of trying to get another job.
There are three great reasons for buying a franchise: having most of the hard stuff figured out for you in advance, name recognition, and marketing materials/branding provided for you.
Franchises already have a system in place for making profits. People have gone before you and figured out a formula. For example, if you’re selling food, the franchisers have figured out what sells and what you need to carry. They’ve figured out what the place should look like and what colors attract the most customers. They’ve also used their experience to predict how many employees you’ll need and what those employees should be doing.
If you buy one, you’ll be happy to know that name recognition will drive customers to you. If a person has been to another restaurant with the same name and logo and likes it, then she’ll be more likely to pull into your place and order. So you don’t have to spend years building your brand.
Your marketing materials will be designed for you at the head office. Again, this is convenient, but then you have to order from them and only them.
Are there drawbacks? Check out some stats on one of the lower-cost franchise restaurants:
- Opening this restaurant will cost you $399,000 – $2,347,500 USD.
- There’s no guarantee that you’re going to make money. All the risk is yours.
- You have to pay 4% of your GROSS sales to the head office. (It’s kind of like a king taking a percentage of your crop in the feudal days.)
- And there are the costs of Advertising Marketing Service Fees, Local Market Advertising, Local Cooperative Area Advertising, Membership in ARCOP, Inc., Renewal Fees, Transfer Fee (Ownership), Training Fees, Additional Training Fees, Audits, Testing of Samples for Approval, Approval of Suppliers, Attorney Fees, Taxes, Assessments, Penalties, Interest Charges, Indemnity and Insurance, and a category called Additional.
In short, this is exactly why I opted for a business model that has everything a franchise offers in terms of support, but for a tiny fraction of the franchise cost. Another benefit I found was being able to rely on my current company’s customer service support team and fulfillment center to deliver all the products so I had nothing to store and don’t have to deal with returns.
There’s a better way to start a second career, and it doesn’t require the heavy lifting.
If owning a franchise that doesn’t take a pound of flesh out of you sounds good, reach out to me or check out the program helped me launch my business for a minimal budget and maximised results.
As always, I’m interested in your success and I’d love to hear what you have to say about this, so please leave your questions or comment below.