Who Buys a Franchise?

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.

Corporate Ladder/Title………………Mid-Management or above

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.

 

*IFA twenty year study on who is the "Typical Franchise Buyer"