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How Much Money Can You Make as a Franchisee? Alabama

When investigating a franchise opportunity one of the most difficult pieces of information to get from the franchisor is how much money you might make. This may be frustrating because you are not going to invest in a business until you have a good idea of what you can earn. In most cases the franchisor is not being purposely difficult. The Federal Trade Commission (F.T.C.) and many states have stringent regulations as to how franchisors can provide this information to prospective franchisees. However, there are ways to get this essential information.

1. Local Companies

2. Why is the government regulating franchisors?

3. Why don’t all franchisors provide this information?

4. Where else can you find this information?

5. Featured Local Company

1 . Local Companies

HAC Restaurant Inc
205-873-0257
520 N 19th St
Birmingham, AL

Maxwell Carter
205-967-2509
1023 Edenton Street
Birmingham, AL

Duell Law Firm
205-408-3025
4320 Eagle Point Pkwy
Birmingham, AL

Gulas & Stuckey PC
205-879-1234
2031 2nd Ave N.
Birmingham, AL

Collins & Downey PC
205-324-1834
2021 Morris Ave
Birmingham, AL

The Bankruptcy Center
205-254-3328
205 20th St N Suite 615
Birmingham, AL

Cindee Dale Holmes Bankruptcy Attorney
205-254-3664
1909 5th Ave. North, Ste. 200
Birmingham, AL

Ayers James C. Atty At Law
205-637-7645
2633 Valleydale Road Suite 100
Birmingham, AL

Boackle Ronald E Atty At Law
205-985-9394
2172 Hwy 31 S Ste 204
Birmingham, AL

Jani King
(334) 265-9830
600 S Court St
Montgomery, AL

2 . Why is the government regulating franchisors?

Early in U.S. franchising history there were many instances of abuse, particularly where unjustified or misleading earnings claims were used to sell franchises. In 1979 Congress passed legislation authorizing the F.T.C. to regulate the franchise industry to try to stop any such bad practices. A number of states also passed similar legislation. The current F.T.C. and state rules do not forbid a franchise company from supplying information about the earnings that can be achieved in their business. They do, however, regulate how this information can be given to a prospective franchisee.

A franchise that wants to provide earnings claims must put it in writing in their UFOC disclosure document. Also, it is essential for the franchisor to make sure that the data provided is accurate and not misleading and they need to clearly label any assumptions or qualifications on the data provided.

Assuming they meet the legal requirements, a franchisor is free to provide whatever earnings information they want to a perspective franchisee in terms of sales, expenses, cash flow and income.

3 . Why don’t all franchisors provide this information?

It sounds relatively simple but there are still many franchisors that don’t provide earnings claims. There are two likely reasons: First, producing an earnings claim does involve effort and expense for the franchisor. Second, the results may not be attractive enough to assist in the recruiting of new franchisees.

4 . Where else can you find this information?

If a franchise does not provide an earnings claim in their UFOC, the best source of information to find out how much money you might make is the existing franchisees of the system. Call them and ask. Item 20 of the UFOC provides a list of current and former franchisees along with their contact information. You will be talking to many franchisees anyway as part of your due diligence so make sure you also cover the subject of the averages and ranges for earnings in the system. By gathering actual performance statistics, you will have a realistic starting point in determining how much you can expect to make in a similar business.

5 . Featured Local Company

HAC Restaurant Inc

205-873-0257
520 N 19th St
Birmingham, AL

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- Part Time Franchisee Alabama

Franchising has become a great way to make money and be your own boss. Being your own boss means, you get to choose your work hours, you get to choose who you work with, and you get to choose what kind of work you do and much more.

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Advertising	Family	Home Services	Real Estate Resources
Business Services	Fashion	Industrial Goods & Services	Retail & Consumer Services
Career	Financial Services	Insurance	Software
Cars	Food & Beverage	Internet	Technology
Computer Hardware	Franchise	Legal	Telecommunications
Construction	Health	Miscellaneous	Trade Shows
Education	Holidays	Nightlife	Travel
Entertainment	Home Appliances	Online Database	Weddings
Environmental	Home Electronics	Pets	World History