How you get rich in franchising
There are a lot of reasons to consider buying a franchise. The appeal of owning your own business, relief from the rat race and burnout of a corporate job, creating a safety net with a second income, wanting something to do after retirement—those are all common reasons for becoming a franchisee.
Surprisingly, according to Joel Libava, AKA “The Franchise King,” making a lot of money is not one of the most popular reasons for buying a franchise. But I’m sure you’ll agree that it wouldn’t be a bad thing!
No “get-rich quick” scheme
Perhaps it’s our Midwestern sensibilities, but the company leaders at Great Clips have always been very sensitive to the idea of people thinking they could “get rich” quickly, or with minimal effort, in our franchise. No doubt many Great Clips franchisees have done extremely well for themselves but it has come as the result of many years of hard work.
When I ask prospective Great Clips franchisees why they are considering investing in our walk-in hair care business, I often hear something like this: “I want to be successful. I want to build my business. I want to have something to pass on to my children.”
They’re not actually saying, “I want to get rich,” but accomplishing each of those things is measured to a large degree by financial success. And, as the quote above says, a great way to achieve financial success—to get rich—is through multi-unit franchising.
The 5-year plan
That’s why as a franchisor, Great Clips encourages franchisees to become multi-unit owners as soon as they are comfortable doing so. After five years operating salons in our franchise system, the average franchisee owns five or six salons. Why? Because there are great benefits to running multiple units—economies of scale, easier employee recruitment and sharing, reduced competition in your territory, and marketing effectiveness are just a few.
We were recently recognized by Multi Unit Franchisee, ranking in their annual list of the top 50 franchisors with the highest percentage of multi-unit franchisees.
If you’re looking into a franchise business, take a look at how many franchisees are multi-unit owners. When franchisees are willing to expand, it’s a good sign that they believe in a system and that the company is providing a level of support that promotes growth and financial success…and maybe even the opportunity to get rich.
What’s your primary reason for getting into the franchise business?