Do Franchises Make Money?
When you become a franchisee and invest in a solid franchise operation, the benefits are two-fold. Franchisees make a profit for themselves, and in turn, the franchisor is able to expand its business and increase its profits as well. Take Physical Therapy Now: Our operation is a prime example of a franchise company that is exceeding financial expectations not only for the corporate side but for franchisees as well.
So, what is the simple answer to the question, “Do franchises make money?” Yes, they do, but only if it is a well-run franchise.
The Secret To Success
For a franchise location to be successful, it must fulfill a variety of different components that come together to ensure it is both profitable and sustainable. Some of the different elements to a successful franchise include having successful systems that are already in place and making sure those systems are easily “teachable” for franchisees.
Additionally, there needs to be a strict vetting process for franchisees to ensure that each location is well run and maintained. Franchise businesses also need to be in great locations that are both visible and easily accessible. And last, (but far from least), each location must provide excellent customer service.
Choosing Your Potential Franchise
With so many franchises across the country, it may be a difficult decision to choose one that is right for you. In the past, some franchisors have not been able (or refused) to answer questions about their profit potential. This could be due to the difficulty of accessing reliable information across the entire franchise network.
However, franchise operations now are becoming more open about corporate and franchisee profits, allowing franchisees to have more visibility before they make their final decision. Forbes says “By 2016 two-thirds of all franchisors provided some financial disclosure because buyers demanded more information.”
Those franchises disclosing more financial information are arguably growing faster because buyers tend to invest in franchises that help them understand whether or not the business is right for them and their potential business objectives. With franchise financial information more readily available now than ever before, it’s easier for would-be franchisees to make an educated and informed investment decision.
Preparing To Be a Franchisee
Becoming a franchisee is not an easy decision, and sometimes it’s challenging to find a place to begin.
Here are some tips on what you need to do:
- Assess your strengths
- Study the field in which you are interested in investing
- Count your money (you’ll have upfront franchise fees)
- Get your credit in order (you’ll likely need a loan from a financial institution)
- Talk to other franchisees
- Do a cost/benefit analysis
An Option To Consider
If you are considering investing in a franchise, look into Physical Therapy Now. Our 34-billion-dollar industry is rapidly expanding due to the stability of the physical therapy and occupational therapy industries. If becoming a Physical Therapy Now franchisee piques your interest, call us at (800) 481-4582 to get started and our franchise team will answer any questions you have. Make the call today!
