First, we need to figure out what the franchise is?
The franchise is something that brings Passive income to your pocket.
So it is good to have one, but there is one thing in a franchise that makes it difficult.
It is divided into 2 sections, a Buyer and Seller. But let us leave it for later first things first. The question was what is a franchise.
To put it simply it is Brand which you rent and use or you let someone else use and make money from it. For that, you need time to create one, and product which will your franchise sell.
Best Franchise example is McDonald’s which you can find all around the world. Of course, it is not the only one but I think it is the most well known and easy to see.
This is the side of the franchise which uses Logo of someone and makes money under it. To put it simply you open a restaurant, shop or something else. Since you own only 1 it is easier to find some well know the brand and work under it.
It is not a bad idea to open one restaurant under franchise and then make money and open the next one and so on.
But remember you always have to pay someone for using their logo.
The good thing about it you don’t need enormous amounts of money and a perfect idea to launch your own business. Since you open a restaurant for someone else you don’t have to worry about the promotion of it. When you find a good and well know a product you just need to concentrate on letting people know that you are selling it. And with world famous brands it is easy.
These are the basic profits of Buying a Franchise.
This is the side we are interested in. Why?
Well because this side makes big money and puts less effort into it. Why?
For example, when you have to run 1000 restaurants you need to manage 10.000 people or even more, you need to control deliveries and all kind of stuff.
But when you have your Brand which is well known, you just sell your logo and get your share of income generated from these 1000 restaurants.
Of course, you still have to control the quality, recipes, deliveries and all kind of stuff but you need to concentrate on other things why?
First, it is not your problem how much money generates each restaurant, it is not your problem if there are people to work in them, all you care about is money that must come each month to your account, all the rest you can simply delegate.
Creating your own brand and letting others work under it to generate money for you should be your main goal.
Of course, this requires time and work to get to the point where you don’t have to do anything but is possible.
There are more stories about how it works around the world look into history how all great brands like KFC, McDonald’s, Burger King started and you will see that each great brand starts from scratch and a simple idea. What makes it great is the effort and work of people who believe in their goal and can see it clearly.