Latest / Financial Survival Network / Thinking About Buying a Franchise? -- Greg Mohr #6028

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Thinking About Buying a Franchise? -- Greg Mohr #6028 · Financial Survival Network

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  Franchises are really looking for people to bring in a good six figure income on
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  their businesses there, so they're going to give you the population density needed to
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  do that sort of thing. So it's conceivable you are listening to Carrie Letz's
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  Financial Survival Network where you get valuable information you just can't find anywhere else to
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  thrive in today's trying times. You need the Financial Survival Network now more than
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  ever. Go to Financial Survivalnetwork dot com and get your free newsletter and gift.
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  Financial Survival Network now more than ever, and welcome. You are listening
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  to the Financial Survival Network. I'm your host, Carrie Letz. Well,
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  many of you out there real estate investors, et cetera looking for other ways
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  to invest. Real estate prices are at all time highs in so many more
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  markets. And Greg Moore, you are the franchise may have and so what
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  motivates most of your clients to really start looking at franchises? Eric A couple
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  different things. One is diversification, so getting another stream of income is really
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  i would say probably one of the biggest things that people are looking to get
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  into a franchise with the other one is just getting out of the corporate world
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  for that and because they don't want to do the corporate world anymore. But
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  my investors, especially in my real estate people, they're really looking to diversify
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  into something that they're somewhat familiar with and with the real estate. Some are
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  familiar with a lot of the home type services franchises that go along with real
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  estate. All right, So what kind of home type franchises do you connect
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  people with? The popular ones is this last year or the last couple of
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  years have been HBC heating, air conditioning, ventilation, plumbing, electrical services,
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  and a lot of the restoration services as well. All right, I
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  noticed something in the show notes about handyman services. To find a good handyman.
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  They're getting paid more money than ever at thirty forty to fifty dollars an
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  hour. And it's no longer the guy from that TV show Schneider, he
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  was the super the handymand now they really they really got to do something and
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  they got to be qualified they do with the franchise is going to help you
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  find those people. So handyman services, lawn care services are very simple,
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  easy operations to do on that so those are really good. Again, the
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  franchise is going to help you find the people, so they don't you don't
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  necessarily have to know how to find your employees. How a lot of the
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  good franchises not only help you find employees, but they'll also help you find
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  clients as well, providing call centers so you're not fielding the calls all the
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  time. You just get up in the morning or your manager does if you
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  want to run a semi absentee and they have us schedule and they just look
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  down the schedule, see you anything to call upon the're looking for their services.
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  Okay, So what's the cost to get into these home service franchises only
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  speaking that you're looking at around one hundred and fifty thousand dollars total investment,
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  give or take depending on if you need any equipment on that franchise. Feed
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  for most of every franchise around is right around fifty thousand dollars itself, and
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  the rest of it is just going to be the total investment, which includes
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  advertising, marketing, a small office if you'd need to gain any equipment that
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  you may need. What's the success rate on these success rate on most of
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  the franchises I work with r Actually, all the franchises I work with there
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  about eighty five ninety percent or better. We look for that, and you
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  can see that in the franchise disclosure documents. They'll have a list of the
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  franchisees who are currently running the operation and a list of the franchise ease who
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  started the operation and are no longer running it. Pretty simple math to get
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  the success rate, and again, eighty five percent or better. That's that's
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  pretty impressive there. And what's the non franchise failure rate or a success rate,
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  well less than that. I don't keep track of that too much,
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  but I know that privately owned businesses are a bigger challenge. I actually had
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  a privately owned dry cleaning business at one point in time and storage units,
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  and I can tell you doing it yourself, well, it has its benefits,
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  you know. Definitely, franchising is not for everybody, But having to
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  do it yourself and come up with everything is a lot more challenging to me
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  than having a franchise system who's already done that in the past and has got
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  that proven track record of success on that. So private businesses fail will quite
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  a bit more frequently than franchises do. So let's talk about returns. What
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  kind of return can you realize on your one hundred and fifty thousand average investment.
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  Franchises are really looking for people to bring in a good six figure income
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  on their businesses there, so they're going to give you the population density needed
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  to do that sort of thing. So it's you know, conceivable twenty twenty
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  five percent. Some of the ones that are a little bit less host intensive,
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  we could bring upwards of above fifty percent. I know that the repairing
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  of leather, vinyl, plastic type of things, those are really high higher
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  than fifty percent on a return on investment because there's not a lot to them
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  on that, and you charge of people a good amount of money because there's
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  a lot of folks businesses especially need you know, plastic, leather, vinyl
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  repair. What states are we looking at? What are the most popular states
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  or people opening franchises? Most of the people I get, I get actually
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  people from all across the United States and just about every state around. The
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  only ones that don't get a whole lot of people from or Alaska and Hawaii
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  and that, but the most popular ones strict to answer to your question,
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  I get a lot of people from the East Coast and the Southern states if
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  you're looking to move somewhere to where you want to look at it, better
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  state to move into. If you want your business in Texas or Florida with
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  no sale next or no state tax excuse me, are good ones to look
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  into. But I get people from all all across the United States, and
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  actually I get some people all over the world as well. Yeah, so
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  you give it. Tell us one of your best success stories. Somebody took
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  who really never done this before and made a major success. Yeah, that'd
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  be probably, I'd say Ben and Trish. They were just real estate investors,
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  and you know, they were looking to diverse by typical thing and they
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  knew real estate, so they actually interesting enough. They wanted to diverse fly
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  into a brewery. They thought that would be the best thing in the world,
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  because you know, that's a lot of fun going into a brewery.
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  Always enjoyed it and hanging out there. I said, well that's good.
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  Let's take a look at that. And what are their other interests. What
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  do you have the things you do and they said, well, we invest
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  in real estate, and said, okay, we'll have something that's real estate
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  related, something that you know a little bit more about and they said,
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  we'll take a look at them, but we'll really want the brewery. So
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  we took a look at the brewery, and we took a look at plumbing,
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  we could look at electrical HVAC and demand services, and they ended up
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  it's kind of funny. Cturcia's kind of in the background for a while,
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  and Ben was saying he's going to do it, and he's going to do
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  a semi absentee. He's going to get a manager to run it. And
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  what ended up happening is at the end first just stepped up and she said,
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  you know, I run all the rental properties, said we're not going
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  to run this semi absentee. Let's get into that electrical services franchise, and
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  I'm going to be the one that does it. And they, you know,
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  they just did it a few months ago and they're really taking off right
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  now and doing just exception. Although probably be Rookies of the Year this year.
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  That's a great story. So so what skill level, What skills do
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  you look for in your clients to be sure that they're going to succeed.
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  One major skill carry is as all this needed. You've got to be coachable,
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  that franchise has done it before. They've got that game plan in place.
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  You're not reinventing the wheel, so as long as you're coachable, the
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  franchise will teach you how to do everything else on that. Basically, the
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  wheel is if you wanted to reinvent it, you would have got into a
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  private business and done it yourself. Yeah, so you don't need to reinvent
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  the egg McMuffin, right exactly, Carry exactly so. And then as far
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  as financing these things go, most people just invest the one fifty in cash
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  or financing. How do they do that? But it's been about fifty to
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  fifty this year. Carry on that one now, maybe a little bit in
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  cash, probably a couple of people in cash, but for the most part,
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  I've gotten people that have either financed it. SBA loans are very simple,
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  especially with the serve industry. You can get the one of their quick
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  Star loans about one hundred and fifty thousand dollars their Express loan for that SBA
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  Express loan, get it done, and probably about a month or so on
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  that one with very reasonable rates out there. And then and it's quite a
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  few of my investors really like other using other people's money for that and then
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  actually had a bunch of people, probably about almost half of them, they
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  actually used their own money out of their four one k or ira and did
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  a self directed for k or ira where they just moved that foural one k
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  money from a previous employer over to a self directed to ira and they just
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  use that money then to invest in their business, not going into debt that
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  way. All right, all right, well, hey, we appreciate you
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  coming on. Just tell us where do we find you? Greg? You
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  can find me at franchisemabon dot com. That's franchise m A V isn't Victor
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  E n dot com? Greg at franchisemaven dot com, or just pick up
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  the phone and give me a call at to reach six to one seven seven
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  to two six four or zero one. All right, and the link is
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  in the show notes to this interview on Financial Survival Network dot com. Makes
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  sure you sign up for your free newsletter. You've got a question for gregor
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  myself, shoot me an email Klatcarrieluts dot com. Greg Pleasure, We'll talk
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  to you en real soon. Thank you for having me, Krrie appreciate it.
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  Thanks for listening to Carrie Letz's Financial Survival Network your solution to today's trying
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  times. For the latest, go to Financial Survivalnetwork dot com. Financial Survival
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  Network now more than ever