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Can you achieve success, revenue and profit through a Personal Franchise?
Yes—and the range of options might surprise you. How about the $50 billion-plus haircutting industry? Franchised barber shops and salons require a relatively low initial investment and can provide solid cash flow relatively quickly. And even in a recession, people get their hair cut. But there are some that you can run with an even lower cost of entry that will also allow you to learn how to run a business.
Did you know there are franchises you can run from home? We call them Personal Franchises...
So, are we talking about a Marry Maids type franchise that you pay $50,000 for and run around cleaning rooms all day long?
No!
A Personal Franchise is a low cost of entry business with a legal and commercial relationship between the owner of a trademark, service mark, trade name, or advertising symbol and an individual or group wishing to use that identification, products or services in a business.
Each Personal Franchise business (franchise) has been authorized by a parent company (franchisor) to sell their goods and/or services within a given set of parameters. The company defines the method of conducting business between the two parties. Some structures are very defined and others are more liberal. Generally, a personal franchise sells goods or services supplied by the company. This relationship is regulated by FTC laws.
The popularity of the Personal Franchise business model has to do with the ease in becoming a business owner. Independent, non-franchise businesses have a much higher likelihood of failure within their first year than true Personal Franchises. One of the most compelling reasons is that, in a Personal Franchise operation, the company and business team provides business expertise (marketing and advertising plans, management guidance, financing assistance, administrative support and training) that otherwise would not be available to businesses starting from scratch. The Personal Franchise brings to the relationship entrepreneurial spirit and drive, which may not be enough to keep a business afloat if the franchisee lacks significant business knowledge.
This allows the franchise to operate by different methods or in different types of locations giving individuals a great deal of flexibility. They can be operated through the home, in RV’s, college dorms, office building or work-live spaces that are now becoming popular. If used properly while living and working – you can deduct many expenses that might not have been deductible.
Many of the Personal Franchise opportunities use the multilevel marketing compensation systems to compensate the personal franchises and are still considered MLM’s by some. The difference between a MLM or Network Marketing business and a personal franchise is HOW the business is setup, run and operated. For example, can you run the business as a separate entity?
Many of the traditional MLM’ers didn’t run their business as a business, selling product to customers, but rather spent their time trying to “get others” into selling their products. Many have been unintentionally educated to become very annoying in the process.
"I haven’t seen you in a long time or let me tell you about an incredible ground-level business opportunity," and you are invited to a house or to lunch for "a discussion." Funny enough, you feel an intuition that there is some hidden agenda or deception. Then came out the white board…but all you wanted to do is see them again.
How can the business be operated? Can you purchase your Personal Franchise as a legal entity – corporation or LLC? Do you have the rights to will it, sell it or freely transfer it? If not, it might not be a Personal Franchise. Franchises take effort and work, there is no free lunch. Did you ever see a coffee shop open with no marketing, no cash outlay? The benefits of most personal franchises are the low cost of entry with the potential high rate of return. For little money ($500 - $1,000) you can have the starting of a personal franchise with the potential to make an above average rate of return ($1,000 - $2,500) a month in a relatively short amount of time.
For more information about Personal Franchises and how to build them with a partnership with others using the Power of Three, check out our past articles, our video's and go through our process of finding your passion, finding a Personal Franchise that matches that passion and a coach to guide you through the process. Cash Flow Potentials is the most respected source of independent personal franchise information also highlighting the top franchise opportunities in the marketplace.
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