Financially Rewarding franchise opportunities
The category of finding franchise opportunities with a good financial payback reflects the level of financial reward franchisees feel they are receiving by owning their franchise and being part of their franchise system. Different aspects that can be perceived as a reward to a franchisee are analysed in this category. Financial rewards include the salary that is achievable through the business and the return on investment available for capital invested from the start. Franchise companies who perform well in this area are most likely to have set realistic expectations of the work involved and the profitability of the business during the franchisee recruitment process. They will also have strong systems in place to educate franchisees how to maximise their returns as well ensure a good and consistent presentation of the business.
When in comes to financial rewards most franchisees have to wait till their third year of business until they become highly profitable. So be realistic in your search of franchise opportunities and get a sense of what it will take to achieve your goals and how long it will take for you to be taking the financial rewards you want from the business.
Our congratulations go to all the franchisors that made the top 10 in the Financial Rewards category for franchise opportunities and particularly to the top 3 of Mister Minit, Smartline Personal Mortgage Advisers and Mr Rental.
#1 Congratulations Mister Minit franchise
Mister Minit is a market leader in the key cutting, engraving and shoe and watch repair business with over 80 franchisees in Australia and New Zealand out of 215 shops. Mr Minit have a unique model in that franchisees come from existing Mister Minit staff. This allows for a great matching of franchisee and franchisor as both parties get to experience each others qualities and characteristics before committing to an even more aligned working relationship. Franchisees already understand the business and the financial potential of their shop, and the franchisor already understands the quality of the work and service of the franchisee. When staff members transition to being a franchisee they pay a minimal franchise fee and pay a small amount for stock for the business.
During the term of the franchise agreement the franchisee pays a fixed flat monthly royalty fee, meaning that the salary they take home is uncapped. Typically the transition from staff member to franchisee has resulted in a salary increase of two to three times depending on the shop and the balance between how many days a week the franchisee works and the number of staff the franchisee employs. This model results in great scores when it comes to being able to generate a greater salary than could be achieved as an employee.
During the term of the agreement the franchisee does not build up an asset. At the end of the term of the franchise agreement, the agreement is either renewed or not. The franchisee doesn't have the opportunity to sell the business. This model leads to a great focus on the here and now and making sure franchisees are financially profitable to be able to take home a healthy salary throughout the course of their franchise agreement.
Click here to find out more about Mister Minit franchise opportunities and to read into the details of what makes it a financially rewarding franchise opportunity .
#2 Congratulations Smartline Personal Mortgage Advisers franchise
The Mortgage industry has a very attractive business model, which at present includes a recurring revenue model. How this model works is a mortgage broker gets a commission payment upfront for arranging a home loan. Then for the life of the home loan the mortgage broker keeps on getting a small percentage of the loan. This is an attractive proposition for a franchisee as they keep on getting rewarded for their initial hard work. Smartline is another business to have added new income streams such as insurance offerings. When it comes to a business looking good to family and friends Smartline is right up there, just view their customer website to see the testimonials and great stories of how Smartline has really taken the time to listen to their customers needs and built home loan solutions that fit each customer. Smartline also does a lot of good work for charities such as Giant steps and camp quality and in the community and has programs set out to build long standing relationships with customers.
Click here to find out more about Smartline franchise opportunities and to read into the details of what makes it a financially rewarding franchise opportunity .
#3 Congratulations Mr Rental franchise
The Mr Rental franchise model is built on recurring revenues. This means a franchisee rents out a product such as a fridge, and this fridge continues to provide the franchisee with an ongoing rental revenue stream as long as the customer needs it. As a result, the hard work is only put in once while the franchisee continues to receive payment for it over the long term. The certainty of this cash flow gives franchisees the confidence that they can draw a good salary from the business every month. What the recurring revenue also does is establish a certainty of income for any potential investor who wants to purchase the business. This means that current franchisees can feel more confident that their business will sell for a good return on investment.
Click here to find out more about Mr Rental franchise opportunities click here to read into the details of what makes it a rewarding franchise opportunity.
