“How much will I make each year with franchise X?” Yes, this question is worth wondering, and worth answering. It is one of the most commonly asked questions among potential franchise partners interested in specific franchises. It’s an important question to ask, though a number of other questions are even more important to ask and have answered.
Consider this comparison: before asking what having children will do for me, what about asking if I am even informed about the responsibilities and challenges involved with being a parent and all that it entails? This simple example denotes a connection between a similar weighty task in comparison with running a business, both of which are demanding and mind expanding, worthy of deeper thought than just the preliminary questions.
Ask yourself questions like these before jumping right into inquiries about profits: Do I already have a full understanding of what it means to operate, on a daily and yearly basis, franchise X? Do I know what kind of time and energy I am willing to make available for this franchise when I consider other current and ongoing demands made on my time? Am I even well suited for this franchise concept and will franchise X consider me a prime candidate for operating with their brand and support? How will I finance my entrance into a franchise agreement? There are many other questions to ask prior to looking solely at potential profits from the start. Those questions will depend on you, because only you know what you want and what you are willing or can do to make a business successful.
Finding out about the earning potential of any given franchise is a process that involves research, namely starting with serious examination of the concept itself. This could then be followed by reviewing in detail the respective Franchise Disclosure Document (wisely examined with guidance from a qualified franchise legal professional, with particular attention given to Item 19 related to earnings claims), and making inquiries directly with select franchisors and some existing franchisees. The exact order in which questions are asked or answered isn’t as important as the motive and conscientiousness of potential franchisees as they carry out their research.
What kind of franchisee is going to succeed through both ideal and miserable economic seasons when they’re primarily focused on what’s in it for them? A focus on personal achievement or gain is mandatory for success though it serves franchisees well to make sure it remains a focus rather than the focus. Powerful insight can come from existing franchisees to assist with managing expectations concerning potential profits and the requirements of everyday operation. This insight can help potential franchisees to better understand if certain franchise concepts suit their financial goals in addition to broader and perhaps even more important goals, such as goals related to the kind of franchise one hopes to invest into when considering one’s existing life demands, such as alternative career or family obligations.