Most entrepreneurial-minded franchise candidates are focused on building one type of wealth as a franchisee: income. But they often overlook the many other types of wealth you can create through owning a franchise.
Any financial advisor will tell you to invest in diverse options, but it will all be invested in the stock market. Franchising is another avenue of diversification.
For any corporate executive looking for another form of investment income or a teacher looking to build a retirement plan, franchise ownership can help enrich your life. While income is, and will always be, the most basic form of wealth, franchising offers six other distinct types of wealth:
Franchising Wealth #1: Income
As a franchisee, you have the opportunity for unlimited income. Your success stems from you and the work you do. The potential for significant financial wealth is there; you only need to harness it.
You can pursue income while keeping your corporate job and spending ten to fifteen hours a week managing your franchise, or you can work full-time building multiple locations. Either way, your income is based on your work ethic and hustle.
Franchising Wealth #2: Real Estate
Your franchise can own a building and put your main office inside. The franchise can improve the structure and increase its value. If there is more than one office, you can lease out the extra space and bring in more revenue.
As with homes, each year, the land valuation increases while the building depreciates, and with the help of a skilled CPA, you can set up your business to gain from this. You can also form multiple corporations/LLCs to handle each aspect of the business.
For example, your franchise can rent space in a building another one of your companies owns. You will always have at least one customer and have all the tax advantages this system offers.
Franchising Wealth #3: Freedom
Choosing your own path and schedule each day is part of being a business owner. Franchisees can build their daily schedule as they wish.
But also, you can't be fired or let go. Your franchise location is yours. There is no more downsizing, no worry about a pink slip. You create everything for yourself, and you control your destiny.
Never miss your kid's soccer game, take a vacation when you need it, or be home by 3:00 pm each day. Owning a franchise allows you the freedom to decide how to spend your days.
Franchising Wealth #4: Knowledge
Knowledge is power. Knowledge is valuable. Franchisees gain a wealth of knowledge as they run the business.
Franchise knowledge is also applied knowledge that you can leverage for future success. Many franchisees use the knowledge they gain through franchising to launch other businesses or invest in additional franchises. Being a franchisee is like getting an MBA. But this MBA is practical, hands-on knowledge.
Franchising Wealth #5: Generational
Do you have children or a family? Your business can be your legacy for years. The franchise is an asset to be handed off to your kids and grandchildren to ensure your family's financial security for years to come.
Being a franchisee can also help build business knowledge in your children as they grow. The knowledge you gain can be taught to your children, and they can grow up helping out and learning in your business. These experiences will help them later in life, whether or not they go into your business.
Franchising Wealth #6: Connections
You will meet so many people as a franchisee. Through your connections, you will become engaged in the world of franchising and be pushed to improve. Franchisees in a system build close relationships and share ideas–and sometimes "compete" for bragging rights. Your skills will sharpen through these connections, and your life, and income, will improve.
These connections also lead to numerous new opportunities. Nat and Pete met because of their connections in franchising and formed HIRE YOURSELF as an opportunity to reach and help more potential franchisees.
Franchising Wealth #7: Time
Time is not a tradeable commodity. No one can make more of it, so what you do with it is crucial. Because you have freedom as a franchisee, you also have time. You decide how to spend your time.
Franchisees can spend or save their time as they wish and leverage it to build other types of wealth. Having a wealth of time means you can focus on the business to gain more income or use your time to pursue real estate investments. Your time can be used to spend time with family and friends or read a book on business. Bringing your son or daughter to your franchise location and showing them how the business works is an option, but so is meeting up with another franchisee and building a stronger relationship.
Time is valuable, and franchisees get to choose how to spend every hour of their day.
Franchise candidates researching potential options are always focused on return on investment but often overlook the intangible wealth they will build through franchising.
Owning a franchise is a great way to find financial security, freedom, and own your own destiny. If you think it is time to become a franchisee, take our Franchise Fit Quiz to see which kind of franchise is best for you, or fast-track your way to wealth and reach out to HIRE YOURSELF for a free consultation.
