Cash Available…………………..Under $120,000.00
Although the typical buyer has under $120K, money has never been the issue in Franchising, unless the buyer does not have enough. There are many franchises that require a lot more than $120K but the majority of franchise opportunities do not.
Net Worth…………………………$250 to $600K (home value)
Net Worth is great, but what the franchisor is looking for is cash.
Average Income…………………..$65K to $150K
All buyers look for a franchise that can make at least as much as they are currently making….but they all want to make more!
IRA/401K…………………………Yes, Most Have
Most franchise buyers have IRA and 401K’s, but almost none are willing to take the penalty and use them. We can introduce franchise prospects to a provider for this service.
Average Age………………………35 to 50 years old
Most Franchisors are leery of working with the semi-retired.
Gender/Couple……………………Male, Couples, Female
Although women have a higher success rate the percentage of franchise buyers have always followed this order.
Owned Business…………………..Most Have Not
Most franchise buyers have never owned a business before but there is a growing number of buyers (30%) who have owned before and bought a franchise the second time around because of the on-going marketing, training and support.
Work Experience………………….Corporate
The vast majority of franchise buyers worked in a corporate environment.
Why Are They Looking……………Down-Sized, No Growth Opportunities, Etc.
Corporations are more concerned with their stockholders than they are with their employees. The opportunity to stay with a company till retirement is almost non-existent.