Greg Mohr, founder of Franchise Maven, discusses selecting and funding franchises for 20% returns. Topics include franchise types, due diligence, funding, and balancing autonomy in franchise ownership.
Franchising offers structured support and diverse industry options for aspiring entrepreneurs.
Comprehensive training and ongoing support are provided to franchise owners to ensure successful business operation.
Deep dives
Franchising: A Viable Business Option for Entrepreneurs
Franchising offers an appealing opportunity for aspiring entrepreneurs, providing a balance between autonomy and structured support. Greg Moore, a successful franchise consultant, highlights how franchise owners do not need to start from scratch, benefiting from existing business models and operational procedures. Entrepreneurs can choose from a wide range of industries and business types, from services like plumbing to brick-and-mortar establishments like fast-food chains. Franchising allows individuals to diversify their investment portfolios and explore new avenues beyond traditional real estate ventures.
Robust Training and Support System in Franchising
Upon entering a franchise agreement, franchisees receive comprehensive training and ongoing support. Franchise owners are not left to navigate the business on their own; instead, they receive guidance on how to run and manage the franchise effectively. Mentors and franchisors play a crucial role in the initial training phase, ensuring that franchisees understand the operational processes and requirements. The structured training approach aims to equip franchisees with the necessary skills and knowledge to operate the business successfully.
Financial Considerations and Funding Options for Franchise Ownership
Greg Moore emphasizes various funding options available for aspiring franchise owners, including personal investment, 401k rollovers, and SBA loans. Franchisees have the flexibility to use a combination of personal and external funding sources to acquire a franchise. The financial aspects of franchise ownership vary depending on the type of business, with service-oriented franchises requiring a different investment level compared to brick-and-mortar establishments. Understanding the financial implications and funding options is essential for making informed decisions.
Exit Strategies and Expansion Opportunities in Franchising
Franchise agreements typically span five to ten years, providing a structured timeline for franchise ownership. After building a successful franchise, owners have the option to sell their business and explore new opportunities. The resale market for franchises offers avenues for owners to exit their investments and potentially realize profits. Franchise owners can leverage the established business model and operational support to expand or transition to other ventures, contributing to both personal and financial growth.
Enjoy this conversation with Greg Mohr, founder of Franchise Maven. Greg has appeared on Bigger Pockets Money and is an expert in helping investors choose a business franchise in which to invest. In this conversation Jonathan and Greg discuss the types of franchises available to purchase, how to select a franchise to purchase, how to fund the purchase, due diligence items to consider, plus tons more.