How Franchises Can Be Used For Building Wealth

Want to Own a Franchise?

Think you can't afford a franchise? This episode shows us how $50,000 can open the door to business ownership.

Greg Mohr, a franchising expert and Wall Street Journal best-selling author joins us to share the details of buying or starting your own franchise.

I think you'll be surprised by how easy it is to get into franchising and the support you’ll receive throughout the process.

From discovering which industry is right for you, to funding, marketing and even scheduling clients - there are systems to help you succeed in a new or existing franchise. All you have to do is pick up the phone and experts are there to support and guide you.

Key Takeaways:

• Rapid Expansion Potential - Franchising can significantly speed up business growth, as it allows for leveraging other people's investments and efforts across multiple locations.

• Franchise Setup Process - Setting up a franchise typically involves an investment of around $50,000 and takes approximately three months. This includes legal documentation, training, and alignment with franchising best practices.

• Semi-Absentee Ownership - An option for those with less time but interest in franchising. This model allows owners to hire a manager to handle daily operations while overseeing the business for about 10-15 hours a week.

Listen to the full episode for little known facts about franchising and discover how easy it is to get started.

Contact Info:

Greg Mohr’s Website

Buy Greg’s Book - https://amzn.to/4cqb02q



Time Stamps

00:18 Meet Greg Mohr: Franchise Expert

01:11 Understanding Franchising Basics

02:08 Franchising vs. Owning Your Own Business

04:18 Becoming a Franchisor: Steps and Costs

06:55 Finding Franchise Candidates

10:19 Investment Requirements for Franchisees

12:13 Types of Service Franchises

13:06 Semi-Absentee Franchise Ownership

14:45 Choosing Between Franchise and Private Business

16:49 Exploring Franchise Support Options

19:46 Understanding Franchise Fees and Royalties

21:12 Personal Experiences with Franchises

22:29 Time Commitment and Exit Strategies

27:30 Funding Your Franchise

30:46 Final Thoughts and Contact Information

• Transcript

  Introduction to the Podcast

  Welcome to me financial the podcast designed to inspire your financial life. Hello everybody. And welcome to the podcast. I am Michelle Moses, your host. And today we are going to be talking about franchising.

  
  Meet Greg Moore: Franchise Expert

  I have Greg Moore here to talk about that. And he is a wall street journal, bestselling author of real freedom.

  Why franchises are worth considering and how they can be used for building wealth. And he has managed restaurants, been a micro electric circuit engineer, owned and operated dry cleaners, storage units, rental properties, and franchises. Greg has helped hundreds of people invest in a few hundred franchise units.

  Thank you for being on. I appreciate you having me today, Michelle. Very kind of you. Yeah. Well, and I don't know a lot about franchising, so I am very interested to hear what you have to say. Uh, I mean, cause I think you hear the different things, you know, you know, you pay some of your income to the franchise, franchisor.

  Is that right? [00:01:00] Am I using them right? Okay. Uh, and you know that you buy it and all that, but I'm really interested to know the details of how people get into them and who is the right person. And so we're going to talk about all that today.

  
  Understanding Franchising Basics

  Um, and so I think let's just start off with what a franchise is.

  Can we just give like a blanket overview of what one is? Absolutely, Michelle. Good question. It is leasing a business model. So the franchise has a business model for you. And what you're doing is you're leasing that business model from that franchise. on there. They've already got that plan, that game plan all laid out for you there.

  So what they're doing is, what the franchise is essentially doing, rather than going out and opening up different locations and growing it themselves, they lease out their business model to somebody else who's going to invest their money. to invest in another city, in another state, wherever. So that the franchise now brings in royalties rather than getting direct money from their own owned units out there.

  So they don't have to spend as much money on investing in the different cities and states. [00:02:00] But they don't get as much back on there. So kind of a trade off on that one. But they need other people obviously to be able to grow.

  
  Franchising vs. Owning Your Own Business

  And it's, is it a little bit better to have other people do it from like a legal standpoint, or is it more, you know, why wouldn't someone just, um, grow, I don't know, have their own stores and get funding versus going the franchise route?

  Yeah, you can't go either way. Great question on that, Michelle. You can't go either way. If. The reason that you would do it that way is that you don't necessarily want to invest your money to do it. So that's, that's more linear growth. If you're investing your money into different locations, uh, that's a linear growth because you have to come up with that money first.

  Then spend that money, hire the people to do it, uh, manage all those people. Yeah. Managing. Exactly. Whereas with, when you go on the franchising route, that's more exponential growth. Now somebody else is investing their money into it so you can grow [00:03:00] faster. on that. And you're also that franchisee that's helping you out and opening up a territory in another city and state is going to be a local owner operator.

  So it gives the community a better feeling of having that a local owner operator or local owner that that's in that area running that as opposed to a corporate location on that. So that's a great, that's a great point. And then if they become the franchisor, I would imagine they spend more of their time.

  doing marketing and, you know, helping the business on how to get the word out there. Correct. Michelle, that's one thing to take a look at when, if you're going to, and that's one thing we do, Michelle, that I probably didn't mention yet, is that we help businesses turn themselves into franchises as well as helping people becoming part of a franchise system as well.

  So I've helped a few different businesses become franchises on that. So your role then as a business owner, it will change as you indicated, Michelle, there's that. You will now be working, uh, different than you would, what you were doing [00:04:00] before on that is you'll be helping your franchisees grow and helping them market and get, they get your name out throughout the United States or throughout the world, however you want to grow.

  So your role as a business owner changes as a franchise or Versus when you're operating it just yourself as the operations manager. Right. So, okay.

  
  Becoming a Franchisor: Steps and Costs

  So I was going to talk about people buying a franchise, but let's go off of you own a business. Uh, let's go down that route a little bit. So if you own a business and you're wanting to grow, but you don't want to go out and get the funding and open up all of these things, then you would explore becoming a franchise.

  And so, okay. And so they would come to somebody like you and then you guys evaluate the business to see, or do you, how long does, would that take? I mean, if they come to you, does it take years to get set up to be able to be franchised or? Just a few months, about, um, three months is basically what it takes.

  So what they, what you're looking is that you come in and I've got a team of people that's going to evaluate that business. So what we're really looking for will [00:05:00] be really be good is if your net is somewhere in the vicinity of a hundred thousand or more. Because the people that I bring to you as a franchise consultant are really going to be making, want to make some pretty decent money on that.

  Now, not all franchises make, you know, net more than a hundred thousand, but that's a good starting point for you. If you have more than one location for your business, that's even a stronger point because then you've proven that you can duplicate your model somewhere else. The more the merrier, if you've gotten that, but you don't have to.

  You just come to us. We look over the business, we evaluate it, and we're going to be looking for things like, is this the type of business that no matter what city or state you're in, everybody needs? Which is a good start. It doesn't mean it has to be like that because there's franchises that do. You know, boat rentals and that sort of thing.

  So obviously, you know, in the middle of the desert in Arizona, it's not going to do so good. Right. But there's going to be enough cities into where you can grow your business where it's, it's, uh, it's feasible, economically feasible for you to do. And my team will put together that, uh, Basically, your directions on how to operate that business, your [00:06:00] franchise disclosure documents on that, all the necessary paperwork policies and procedures manuals for you to get that done, get all the legal work done.

  So amazingly enough, it can take about three months. Wow, that's quick. I thought that it would be much longer than that, but is it like a big team that's working on this then and getting all of the different parts in place? Yeah, you've got a big team on that and you're going to be investing about a. Give or take around 50, 000 to get it all done.

  Okay, that was my next question. Yeah, they're going to have the team that's going to do it. You're going to have the attorney on there. You're going to have the people that are putting together your, your documents. So you got your legal team on that and you've got your team that's putting together your policies and procedures manuals.

  So get all of them typing up all that. It's back and forth and it's three months as if you're going to stay on top of it and you really want to get it done. Uh, then they'll meet with you on a regular basis and you can get it done that quick. Okay. Yeah, that's quick. And it's not as much as I thought. 50, 000, I think is doable for a lot of business owners.

  Wow. Okay.

  
  Finding Franchise Candidates

  And so then once they become, uh, available to be sold, then they kind of [00:07:00] go into your network and you guys pair them with people that are looking to become a franchisee. That is one way to do it, Michelle. There are many different ways to do it. Oh, there are. What, uh, quite true. You can go out and do it yourself on that.

  So that would be the next step of the process that you would be thinking about as a business owner, is how am I going to bring in new candidates? You could just simply, and probably the best way to start is, uh, friends, family, uh, clients that you've had before that know your business that have come in there that might want to invest.

  And, and I'll build a unit somewhere. That's a good, a good way to start. Um, you can go out and just advertise yourself. Uh, just like I do. Just like us consultants do. We advertise for franchises all the time. I see them like in little newspapers or the local newspapers. Yeah. Exactly right. And you can do that.

  If you really want to go public. Real quicker. Then you get ahold of some of the, the consultant organizations like the one I belong to, which is IFPG, the International Franchise Professionals Group, and there's about five or six different ones out there. It's, [00:08:00] uh, not a large cost. I don't know how much it is actually to get into it, but just a, a couple thousand dollars for some of them to get into if you don't wanna do that.

  Advertising, marketing yourself. Then you belong to get into a consultant organization. Then what you will do is you will give a presentation to us and give us information on who it is that will make an ideal client or candidate for you. And you tell us the, you know, the exact what you're looking for.

  What's their net worth going to be? What's the background going to look like? Uh, you can allow a lot of them to run a semi absentee if you want it to run a full time. So you'll give us all this information. And then, then you just sit back and know what we do. So what I do is we go out and we vet all those different people.

  So that's what I do when my clients come in to me. I already know who the franchisors are looking for in a great franchisee, in a successful franchisee, so that I filter out my clients to find out what they want, what they're looking for in a great franchise. And as that new business owner, that new franchise says, these are the type of people I want.

  Uh, when Michelle comes to [00:09:00] me and says, you know, this is my list of what I want, then I can say, Michelle, this right over here, this, this new ones come up, great people, emerging franchise. Uh, I think you should talk to him, get some more information and just, uh, see how you feel about it. So do you have a list of like, I mean, how big is your list at one time of people that you're pairing?

  Uh, I mean, is it 20? Is it 100? I mean, could it, is it huge? No, it's not huge. I don't, uh, I try not to work with a whole lot of people on that, just to keep it manageable. About 50 people. Okay. Uh, candidates at a time that I've worked with. Uh, give or take, and then I have about 500 franchises. Okay. Well, no, that was my question.

  How many franchises? Okay. So that's a lot. About 500. Okay. So there's a lot. And so then you're interviewing candidates and then kind of matching them with what would be good. Right. So the 500 franchises, I, I know I'm all generally, uh, Uh, fairly well, but there's a few in each industry that I know real well on that.

  So I know the ones that I feel good about that I've met the people in person. [00:10:00] Quite often I'll have gone out to their site, to their home offices, and got to know them in person and taken tours of their areas. Again, what I am is all about education, education, educating people about franchising. It, I don't try and convince people it's the greatest thing since sliced bread because for some people it is not.

  And we will get to that point. Right. Yeah.

  
  Investment Requirements for Franchisees

  So let's switch back over to somebody that wants to get into franchising or into be a franchisee. They want to buy and purchase a business. So what would be a reasonable amount of money that they need to get into this? Um, or is a lot of it that they would just get a loan?

  And they have to have a good credit score. Great question on that, Michelle. So, um, as your franchise or the new one that's coming in, they can either be a brick and mortar franchise, or they can be a service industry franchise. Those are the two basic different types of franchises that are out there. So what we, you and I see on a regular basis is when we're driving around, we see the brick and mortar franchises.

  So we see, you know, McDonald's, Taco Bell, you know, [00:11:00] Mikey Mako, Supercuts, Great Clips, that sort of thing. Those ones, when you're looking at an investment level for those, since they're brick and mortar, it's going to be a little bit more. So most of those brick and mortar franchises, the franchise ores and the banks, are going to be looking for around, you know, 500, 000 net worth, maybe 300, 000 on the low end.

  net worth, and then probably around 50 to 100, 000 cash on those. So those are going to be on the high end of the investment side. Okay. For total investment on those. If you're looking at the service industry, that's where you don't need this much money because now you're doing something where your clients don't necessarily know you exist until they need you.

  So the franchise drives people to you when that need arises, but now those people are not driving by and seeing you. You've got a small office. You're working from home and going out and investing with your clients. So you're looking at a 150, 000 investment, uh, give or take. You'd probably go with an SBA, uh, express loan, I would say, and then you're putting down about 20, 000 down if you've got about 200, 000 net worth [00:12:00] and about 20, 000 cash or so, uh, and a decent credit score, 650, 000, 700, 000 or better.

  Okay, so that one's doable for a lot of people. And, okay, so what are the services? Franchisees. Like, what are, what kind of businesses are those?

  
  Types of Service Franchises

  So service franchises are ones that are like home improvement type franchises. You could start from the top. Oh, like the blinds and, okay. Yeah. Budget Blind, big craft.

  Uh, the Neighborly Group has Mr. Appliance, Mr. Rooter, uh, the Ground Skies Authority Brands has Mr. Sparky, Benjamin Franklin Plumbing. But you also get into your senior care franchises, your tutoring franchises on those. Oh, I didn't think about that. Right? So those are, are small office or work from home because you're going out and visiting with your clients again.

  Very low investment, 150 express loan, 20, 000 cash, you're good to go. Okay, so I would imagine that part of it that you're going to pair people with is, uh, their money, but then also time that they want to spend on their business, correct? So some of them are full time and some are [00:13:00] maybe part time because you're hiring employees, I would assume?

  Correct, Michelle.

  
  Semi-Absentee Franchise Ownership

  Well, what you're doing, instead of just hiring employees on that, is you're actually, if you want to do a part time, what we call a semi absentee, which is about 10 to 15 hours a week, you're hiring a manager, and then you let your manager do all that work, so you meet with your manager then, uh, you know, a couple times a week, 10 to 15 hours, you manage the manager, you manage the profit and loss statements, And there's many different franchises in many different industries where you can do semi absentee and there's just the same amount where they require you to do a full time.

  You just tell me what you want, I bring you back those, uh, that meet your criteria. Okay. And so that's truly, it's semi absentee because It's to me, I think with the business, it never, you don't care nearly as much as what your employees do. And so it does work that way, I guess, because you're meeting with the manager that often.

  You'll be meeting with the manager and going by the, uh, the store or if it's a, uh, uh, service industry, you'll go by and you'll check on [00:14:00] them every once in a while. You know, how many hours you put in, it really depends on your management skill and style. But yeah, you let your manager handle all that.

  That's their worry. That's their concern. You just make certain you have a good manager. And generally speaking, that franchisor is going to help you find, uh, find that manager. And quite a few of them also help you find the employees, especially say the senior care industry, where you have to vet out only the best senior care people because they're dealing with people in their homes.

  But you want, And that's really what you're looking for in a franchise is somebody that's going to help you with all that, that step by step procedure. Okay. Uh, and I want to get to that, but before I do, so if someone wanted to do a lot of these people that are buying franchises, have they wanted to start their own business and instead they do the franchise route or how does that work?

  
  Choosing Between Franchise and Private Business

  Or they think this would be easier to, because all of it is ready, you know, it's like ready made, like in a box, like here you go, you're ready to go. No, great question. Basically, you got your privately owned business or your franchise. Which route should you take [00:15:00] on that one? If you buy your own business, that is yours to do with whatever you want.

  You can grow it into any territory you want to. You can do whatever you want with it. You put all the money in, you get all the money out. But it takes a long time. You're an island up there. That's it. So what you're looking for in a franchise is you're looking for a franchise to get you to where you want to be two to three years quicker than if you were to do it yourself.

  Okay. You've got a team of people that are helping you grow already have that proven business model out. You've already got the team, the mentorship, not only is that franchisor going to help you out, but as you go through that investigation process, you'll be talking with franchisees who are currently running that business, so you're going to be making a whole team of people, of friends, everybody grows, almost every franchise, not all of them, but almost every franchise has a protected territory that no other franchisee goes in, so you're never competing with the other franchisees.

  Everybody's working as a team to grow it. You don't want to have to reinvent the wheel or anything like that. You just want to step into a proven model and you just want to grow with that model. That's why you get into a franchise. Okay. And [00:16:00] then are you finding that people have different personalities for this?

  Like there's certain personalities that want to start a business from the ground up, and then there's others that are like, no, forget it. You know, I'm good with taking off two years. Yeah, quite a bit, Michelle, on that. Basically, when I'm looking at, I would say, I would say probably my younger entrepreneurs that are real go getters, uh, that just want to look into franchising to see if it's an option.

  Uh, sometimes those are, uh, they've got enough energy to go out there and they don't mind doing it themselves as long as they have the money for it to do that. Uh, my older entrepreneurs that come to me, Uh, where they've done it before, they're like, I've done that before. Yeah, I don't want to do that again.

  It makes sense. They're like, I've already done that. I'm good. Yeah, exactly. I'm looking for something different and some more support and to not be doing all of the bits and pieces. Yeah. Okay.

  
  Exploring Franchise Support Options

  So if you buy a franchise, what kind of support can you, because I mentioned marketing, but what other kind of support can you get for it with purchasing that?

  And I know it's not going to be the same across every single [00:17:00] business, but what are some examples of things that you would get? That's correct. So on that one, what you'll be looking for there is perhaps a call center. If you were looking for the services industry, for instance, you'd be looking for somebody else to field the phone calls for you or for your manager, if that's, uh, if you're doing a semi absentee.

  So you want them to, uh, When the need arises, your customer calls, you've got a call center, they handle that, they schedule your call. A lot of times, even with that call center, you may be looking for, have them to give out some quotes. Maybe if it's that type of business where they can say, okay, what are you looking to do?

  They can give out some quotes, uh, and get all that done ahead of you, so you just walk right over there. Uh, to your client, and you're good to go. If you're looking at like a brick and mortar, you want that grand opening, that huge grand opening experience. Uh, if it's a membership model I haven't thought about that, yeah.

  Membership model, say for fitness, you want that team of people on your franchise team, uh, that goes out there and builds that membership model before you even open. that business. So you're kind of [00:18:00] hiring like a sales team to at the same time with the call center and people building up the business before it even opens.

  Oh, that's nice. You never want to wonder what you are going to do next. And you should never have to with a great franchise always going to be there. This is your steps. Okay, so they've got steps about opening and then they say three months in six months or even month, it might they might break it down to this is what's going to happen.

  And this is what we're going to do. Exactly right. So even with a brick and mortar, Uh, when you're doing that build out, they're going to have a build out plan with a brick and mortar. For instance, you are not a real estate person necessarily. You're not a lease negotiator, so you want to look for them to have a great real estate team that finds you that location, and then somebody that's going to negotiate that lease for you.

  And then they want the whole plan. You want that whole plan for that build out, all laid out. All you do is come up with the money. Okay. Simple as that. Okay. And then do you have a say in the location? Like say you, cause you do live in the area and maybe these people that are negotiating don't. Do you have a, could you say, [00:19:00] no, I don't really like that one.

  Can we look for something else? Okay, so a couple different things on that one. First off, yes, short answer to that. Absolutely. What they're going to usually do and what I've seen is that they'll come up with two or three different locations. Okay. They meet their traffic needs and you decide it. Uh, second, secondly, is that the franchisers want you within about a 30 to 60 mile radius of your franchise.

  So whatever locations they pick out are going to be close by. Easy driving distance. Right, because they want you to be able to pop in and, you know, undo all of that. Okay, locally owned. Right, right. Okay. And so the time commitment varies. And so what are, I guess, when you buy one of these, what could you expect to have to pay out to the franchisor for all of these services?

  
  Understanding Franchise Fees and Royalties

  Okay, so first off, there is the total investment, uh, which pretty much what we've been alluding to with the two different types of franchises there, but the two fees that you pay out to the franchisor is, one is the franchise fee, one [00:20:00] time franchise fee, give or take, it's generally around 50, 000. on that one time, one time fee that gets you everything you need to know about that franchise, get you all the training that you need, everything you know how to do to operate it.

  So it's 50 to have you set up. Oh no, that's for the business side. Sorry. Okay. So we're on the other side. Okay. So it's kind of 50 on both sides, 50 get set up as a franchise and then 50 of you want to buy one. Okay. Right. So as a franchise or you're paying 50 to get that franchise set up. Now you're a franchise.

  Now you charge your potential franchisees about 50, 000. It just, it varies, but it's about. Well, right. Yeah. So now, once you have that franchising in the system and you're franchising the system, you have what's called royalties. The royalties are what keeps that business, that franchise business growing on that.

  It's their incentive. The more they, more you have to pay out in royalties, the better you're doing. So the more they help you grow, the more money they get. But that royalties are what you pay is generally going to be between five and 10%. [00:21:00] I don't think that's that bad. I was expecting you to say like 25 or 30 percent, uh, not used staffing industry does a little bit more than five to 10, but no, it was generally between about five and 10.

  Okay.

  
  Personal Experiences with Franchises

  And so when I was introducing you, you have all the experience and storage units and we had, what else do we have? Dry cleaners were those franchises that you have been involved in, or those are completely separate businesses. Okay. Privately owned businesses, uh, which is one of the reasons why I got into a franchise because me and another engineering friend of mine, and I ran those, we ran those semi absentee.

  We didn't know anything about the dry cleaning business. And that was, uh, that was a challenge to try and figure out how to, uh, how to run a dry, your own privately owned dry cleaning business when you know nothing about the, the dry cleaning industry. Uh, so that's what made me decide later on one of the reasons to get into a franchise.

  Really? So you opened your own business, you built it from the ground up. Uh, or you bought it, but then you were operating it, okay, but it wasn't a franchise. [00:22:00] But then after experiencing that whole thing, then you were like, okay, I think franchising is the way to go. It is. I'd also been involved in a franchise way back in my high school days, uh, a long, long time ago.

  Taco Bell, I've worked there. I worked for a master franchise, but between those two things, but just knowing what it took to take over and we bought that, uh, uh, existing right clinician just to take it over to try and figure out what was going on. It's like, You know, I could have used a lot of help with that.

  Yeah, I bet.

  
  Time Commitment and Exit Strategies

  And what do you tell people is the time commitment and years of owning it? I mean, do people go into these and it's like they're going to do it for life? Or is it the idea that they'll do it for 10 years and then hopefully send it? So, you know, what's the end game, I guess? So one of the things I, I generally ask folks on that one is, you know, what's your exit strategy on that one?

  What do you want to do? Um, I've seen them take it and, and just stay with it and run with it, uh, for years on that, and turn it over to family members, I mean kids at some point in time. Your, [00:23:00] uh, franchise agreement is generally going to be between, be between about five and ten years. Okay. That doesn't, that doesn't mean you have to stay with that franchise for five to ten years.

  That's just what your agreement's for. You can sell it at any point in time. So I had a gentleman not too long ago that, uh, did a kitchen remodeling franchise. He built it up over three years. And then after three years, he wasn't making enough money on it to where he could get a good price for it. So we told him.

  So simple process to sell it. You simply tell the franchisor where you want to sell it. And generally speaking, another franchisee will pick it up. If they don't, then the franchisor tells us, consultants. That there's one for sale and uh, franchise resale go pretty quick because it's already established and you have books and you know, yeah, they've got a lot of things to look at.

  Okay. Wow. This is way more accessible than I ever thought that it would be. I just thought that there was hundreds of thousands of dollars of investment to purchase You know, I don't know, a McDonald's or something and to be able to get into that and, uh, that it was kind of out of the realm [00:24:00] of possibility for even business owners to do.

  But so let's go the two routes too. So if you're a business owner and you want to become a franchise, do they call, do they call you in both instances or how, you know, Yes. And then you can direct them in the, into the different ways. Right. So I'll stay with them and I'll help them out. They want to get into a franchise themselves or whether they want to become a franchise.

  I'm always there with them every step of the way. I've got, you know, a couple of different groups of people that will turn them into a franchise so we can compare and contrast the two of them, see which one works out best. If you are somebody who wants an, uh, yeah, an entrepreneur or inspiring entrepreneur who wants a franchise, we'll do the same thing.

  We'll look at a few different franchises, compare and contrast. I'll get you educated on that and then I'm with you every step of the way as we do this. And I don't charge anything for my services. The franchisors pay me a referral fee if you decide to invest in a franchise that I introduce you to. Okay.

  Oh, well, that's nice too. So that it's you, they can like kick the tires and see what they want to do. And then, [00:25:00] uh, if it's a match, then you make money. Okay. Exactly right. So I better come up with a good match or I'm not right. Right. I'm sure you are, but Well, this was just way, I mean, way enlightening for me.

  Honestly, I had no idea that the barrier to entry was so, it's just so much lower than what I thought on both sides and the support that you would get. And it's funny doing this show. Um, I talked to so many different people that there's all these ideas that I'm like, Oh, Oh, I like that. Oh, I like that. You know, and that's how I'm feeling about this too is I feel like this is, uh, there's just so many possibilities of what you, what you can do.

  There are. It's amazing. I can usually find a franchise for anybody that's interested in finding a franchise. Uh, but again, I'm not pushing it. We'll get you education. A lot of people just decided at this point in time, it's just not for them. For whatever reason, they don't want to spend the time or they're not quite ready to write the check.

  That's fine. At least you're educated. At least, you know, I've had people come back to me three years [00:26:00] later. and get into a franchise since they talked to me because it just wasn't the right time. Right. And that happens. Yeah. And so is there a certain ideal client that you have that you think is a good fit?

  I mean, I know we've talked about credit score and I mean, but is, is it just, I don't know, just time and credit score and money and desire? Those three things. One thing. Okay. One thing that is ideal. You got to be coachable. Okay. Because you're going to be coached because somebody's already come up with a plan for you.

  So if you can follow that plan, if you can be coachable, they're going to have that mentor for you, they're going to have people helping you out, you're, you're good to go. Uh, anything else, um, you know, it can be trained, it can be taught, uh, we can find something for you. A lot of people who are really good, I would say, uh, really good franchisees will be the people that are in corporate world that are managers.

  So they run teams of people. So they've already, uh, Run a business within a business before. So stepping [00:27:00] into a franchise role, um, whatever industry you want to get into. And if you don't know anything about it, it's no different from what you're doing. That's a great point. Running a business. Yeah, that's a great point that if you worked in the corporate world as a manager, that being able to step into this.

  and Manage People would, but you'd be able to own your own business. Yeah. Okay. Well, I love this. Greg, I'm so glad that we connected. I'm glad that I had you on. Am I missing anything that you feel strongly about mentioning to people about franchising? One last thing. Okay.

  
  Funding Your Franchise

  How do I fund the franchise? Where do I get my money from?

  We have people that fund franchises all the time. Oh, really? Yes. Funding a franchise is absolutely simple on that. The franchise has got a proven track record. So the people that are funding people I work with, they're good to go. Proven track record, no problem. They just look at you, what's your credit background?

  You got a good credit background, doesn't matter if you know anything about the industry, doesn't matter what experience you have, no matter, because they, [00:28:00] they know that that franchise is going to be vetting you out, because they, that's why they have that proven track record of success. So, as long as you've got 680, 700 credit score and you meet the qualifying requirements for net worth in cash for the franchise, nothing to it.

  So, it's, it's easy. Okay. Yeah, you can also do a rollover, a 401k or an IRA rollover and use your own credit score. Retirement money for that. That's a whole nother story. Oh, really? Okay, so any money even if it's not cash outside because that's the problem I think is that people just have retirement savings, but if they have retirement savings savings, then they can use it Wonderful.

  I do it with mine. I use my uh 401k, uh from a previous employer You have to roll it over in self-directed plan. Uh, but if you're interested in learning more about that, just again, just gimme a call. I'll tell you how I did it. Okay. And then, and you said earlier right, that a Fran, a a franchisee could expect to make at least a hundred thousand dollars a year.

  That's like your base minimum is. I would never say anything like [00:29:00] that. Okay. Uh, so that's what a lot of people wanna know is how much can I make? Right. So that is one thing that is ruled by the Federal Trade Commission. Quite a bit. So when franchises first started coming out a while ago, there are some nefarious people, unfortunately, out there that said, if you invest in this franchise, you will make this amount of money.

  And it didn't always happen, unfortunately, with some of them. So the Federal Trade Commission comes in, steps in, and says, unless you gather that information yourself, you cannot give that information to others. So I cannot tell you how much. Most of the franchises out there really want you to make a good living on that, um, and they really try hard to get you into the six figure income route, uh, but not all franchises do on that.

  I've got a pretty good idea of what you'll be hearing. When you talk with certain franchises, so I kind of steer people towards. You know what they're looking for and what they want, but I cannot. Unfortunately. Do you guys do like a pro forma? Like if you have this many customers, then this is what you'll make, [00:30:00] obviously some forecasting.

  Okay. So at least they're not going in completely blind. Franchise or we'll do that. I won't do that. So I don't touch the, what do they call that? The earnings claim. Okay. I don't touch the earnings claim on that, but before you invest any money at all. You're going to have a really good idea, as you said, Michelle, with the proforma and the franchisor is going to walk you through that as well.

  So, and then you're going to talk to other franchisees and I'll have a list of questions for you for franchisees and franchisors. So you don't miss a beat on that one. And one of the questions I'll have for you is, uh, you know, when you talk to those franchisees, how much did you make? How long did it take you to get there?

  And what do you got to do to get it? And you got to be good with that. Uh, if you're not, move on. Find another one. Okay, well I think this sounds wonderful.

  
  Final Thoughts and Contact Information

  I am really glad that I had, I've said this before, but I'm glad I had you on. I have learned a lot. I hope, listeners, I hope that you've learned a lot and maybe have realized that the barrier to entry to these is so much lower.

  Uh, Greg, thank you so much for being [00:31:00] on. Uh, and you guys, I'll have Greg's information in the show notes. I'll tag him on LinkedIn and all those kinds of things. If you do want to contact him, uh, feel free to reach out to him or let me know, and then I will connect you guys. So thank you so much for being on Greg.

  Thank you for having me, Michelle. It's an honor. Thanks. Thanks for listening. You guys.

Disclaimer: The information provided in this podcast is for general informational purposes only and should not be construed as professional financial advice. Always consult with a qualified financial advisor or professional before making any financial decisions. The hosts and guests of this podcast are not responsible for any actions taken based on the information presented.