How Much Money Can You Make as a Franchisee? Wyoming

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 & National Companies

Franchise Network of Wyoming
(307) 633-3726
1018 Range Line Rd
Cheyenne, WY
Dagwood Sandwich Shop Llc
(727) 507-7300
17757 US Highway 19 N Ste 310
Clearwater, FL
Vintex Personnel Services Inc
(305) 666-8331
7466 SW 48th St
Miami, FL
Chicago Franchise System Inc
(708) 444-4411
8200 185th St Ste J
Tinley Park, IL
Ragin' Ribs Intl
(813) 258-0606
501 S Dakota Ave
Tampa, FL
Camino Consulting Group
(312) 377-3825
430 W Erie St
Chicago, IL
Camelot Communications Group
(973) 226-3568
277 Fairfield Rd
Fairfield, NJ
Kfc
(847) 854-7386
415 S Randall Rd
Algonquin, IL
Franchise Edge the
(813) 935-5087
8019 N Himes Ave
Tampa, FL
Auto Lab Franchise Management Corporation
(734) 354-0492
705 S Main St
Plymouth, MI


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 National Company

The Entrepreneur's Source

770-973-5878
Emerson Ct
Marietta, GA
www.TheEsource.com/TTrace

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