How much can you make in franchising?

For a mum looking to work from home part time, a franchise opportunity is a very good way of starting up your own business. You have help on hand right through the early stages and later when you want to expand the franchisor will help you with all the legal issues involved in hiring staff and growing the business. It is very important you choose a franchise business that interests you and will fit your lifestyle. The initial investment can be quite hefty, so you want to make sure you get it right first time.

When it comes to the earning potential, any franchisor looking to make a sale will put the best possible gloss on what you can make in a year. Look very carefully into what sort of hours they are expecting you to put in to achieve the earnings they mention. If you only have a maximum of, say for the sake of argument fifteen hours a week, don’t take on a franchise business where the recommended input is 25 hours. You will soon fall behind and the earnings will not match up with your needs. Many new franchises are funded from bank loans as many of the franchisors can arrange them with a bank for you. This is usually a maximum of 50% but even so this can leave you with a substantial debt, so make sure you can give the business the attention it needs.

In most cases, the set up fee is the hint to how much a UK franchise can bring in annually. A cheap one is not likely to have the back up or the introductions that a more expensive one will include, but on the other hand it won’t land you with a lot of start up debt either. You could end up making a reasonable income from an inexpensive franchise, but it will probably take longer. When you work for yourself, even as a franchisee, you get back what you put in in terms of effort. If you take on a business franchise which is designed for one person working part time from home and then have to take on staff to make it work, your earnings will be severely depleted. This is commonsense, so it is essential that you are honest with yourself and your franchisors before you start the process.

When you buy a franchise, nothing is guaranteed. You still need to work really hard to make a go of it. Some people buy a franchise thinking that it is an easy way to make a lot of money and many people have gone bankrupt because of this attitude. You get back up and experience in a franchise opportunity, but the hard work and dedication has to be your own.  With franchises as with all other things, it is important to remember that if it looks too good to be true then it probably is too good to be true. A good franchisor will want you to succeed and will set reasonable goals and give a conservative estimate of earning potential.

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• Franchising