“How much money will I make?” might be the first thought that comes to your mind when considering a new investment opportunity, and we don’t blame you! Making a solid return on your investment should be one of your primary goals as a Franchise owner. On that topic, we have good news and bad news.
The bad news is that nobody will be able to tell you or guarantee you the exact amount of money you will make on your franchise investment – that would require a crystal ball! The good news is that although we don’t have a crystal ball, we DO have what’s called Item 19.
What is Item 19?
Item 19 is a section within the FDD (Franchise Disclosure Document) that provides Financial Performance Representations. In other words, Item 19 gives you a look at how much money other investors have made with the same Franchise. You’re not guaranteed to replicate their performance, but if a franchise’s Item 19 is full of excellent numbers, it’s usually a great sign for your potential with that company!
Today, we’ll be discussing 5 common attributes shared by companies with a healthy Item 19!
1) These franchises are agile and pivot their model to accommodate the times
As we’ve seen recently with the pandemic, the business landscape changes quickly. Even in non-pandemic times, rapid changes in technology and outsourcing of production/services has given modern businesses two choices – adapt or get left in the dust!
The franchises featured this week are all perfect examples of modern, agile companies that pivot their business model as needed. This will help future-proof your investment and give you confidence that your franchise will withstand changes in the market!
2) These franchise brands are recession-resistant
Franchises with a healthy Item 19 tend to have solid business plans that fulfil needs that are not affected by recessions. You can’t control when the next recession will happen, but you CAN control your franchise investment choice!
3) Franchise brands with a healthy Item 19 often provide a value-added service
This week’s featured franchises provide services that add real value to the lives of their customers. Happy customers = repeat business and referrals = a healthy Item 19!
Again, we can’t guarantee your own performance will mirror what you see on a company’s Item 19 but this looks like a winning equation to us!
4) They tend to have a proprietary aspect in their product or technology
Nobody likes a copycat, especially in the business world! The good news about this week’s franchises is that many of them have patented products/technology that cannot be copied by other companies. This proprietary factor allows these franchises to maintain a competitive advantage and therefore, a health item 19!
5) These franchises provide significant support to their franchise owners throughout the lifetime of their business
When entering a franchise-franchisee agreement, both parties will ideally do everything they can to drive success for the company’s operations. This week’s featured franchises all provide a great deal of support to their franchise owners, not just at the beginning but for the lifetime of the franchise.
This continuous support allows franchise owners to see consistent growth and is one more factor that will lead to a healthy Item 19!
Conclusion:
After learning about all of these benefits, do you think that investing in a franchise with a healthy Item 19 might be the perfect way for you to achieve your entrepreneurial dreams? If so, you’ll definitely want to join our webinar this weekend which will be showcasing 5 franchises with a healthy Item 19 that you can invest in!
Each company will feature a 5-minute overview presented directly by the franchise themselves. We’ll see you there!