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