Being a Franchise Owner: What to Know Before Investing

Being a Franchise Owner: What to Know Before Investing

If you’ve got a nose for business and a desire to pursue entrepreneurship, franchising can help you achieve your goals. Learn more about running your own business and being a franchisee owner.

What is Franchising?

As part of the franchise business model, an entrepreneur, or franchisee, is granted the right to use an established brand’s operational system, products, and name. Franchisees pay a franchisor initial and ongoing fees as part of this relationship. Early franchise pioneers such as General Motors, McDonald’s, and Howard Johnson’s Restaurants helped strengthen the franchise business model, which is expected to generate $893.9 billion this year.

Being a franchisee can be lucrative and rewarding. Having training and support helps franchisees build profitable businesses. A survey conducted by Guidant Financial reveals 68% of franchises open for more than two years are profitable.

What You Need to Know

Investing in a franchise, like Aussie Pet Mobile, can provide a strong foundation for starting your own business. Being a franchise owner offers significant advantages, especially if you’re a new entrepreneur. Take a closer look at what you need to know as you embark on your franchise journey.

  1. Pick a business type: Do you see yourself as a hands-on owner-operator, or would you prefer a more passive role? Are you drawn to owning a retail store or working from home? Do you want to cater to business clients or serve everyday consumers? Answering these questions will point you toward the franchise that fits your goals and lifestyle.
  2. Analyze market demand: Determine if there’s a market for the franchise’s products and services in your area.
  3. Understand the franchise fees: Your initial franchise fee grants you the right to operate under the franchisor’s name, but there are other costs like royalties, marketing fees, and operating expenses you’ll need to cover.
  4. Know your budget: Franchising requires an initial investment, and you’ll need working capital until you start generating a profit. Determine how much you’re willing to invest and how you’ll finance your venture. Many franchisors partner with lenders to help facilitate financing. Decide if you want to finance your business using your retirement account, a home equity loan, a traditional bank loan, or a loan from the U.S. Small Business Administration.
  5. Research the franchisor: Not all franchisors are created equal. Review the franchise disclosure document (FDD) closely to determine earnings potential and details on the training program and other support the franchisor offers. Conducting validation with current franchisees can help you gauge the quality of the franchise you are considering.
  6. Territory availability: Make sure the franchise has territories available in your location. Is there room to scale your business over time or is the market already saturated?

Own a Mobile Pet Grooming Business

Aussie Pet Mobile, the No. 1 pet grooming franchise, has low overhead costs and high profit potential. Franchisees are required to purchase an upfront 3-territory package that can support 9-12 mobile grooming units, and we offer in-house financing of up to $80,000 to qualified candidates. Our mobile franchise model relies on our eco-friendly, fully customized Mercedes-Benz Sprinter grooming vans built with air conditioning, heat, electricity, and water, all powered by lithium-ion batteries. A dog grooming business offers recurring revenue as most pets should be groomed every 10 to 12 weeks.

The pet industry is a thriving market, driven by increasing pet ownership and the growing demand for premium pet care products and services. Americans spent $147 billion on their pets in 2023 and that number is forecast to reach $150.6 billion this year, according to the American Pet Products Association. With consistent year-over-year growth, Aussie Pet Mobile offers entrepreneurs a recession-resistant opportunity to tap into a growing customer base.

Unleash Your Inner Boss

For an initial investment starting at less than $180,000*, you’ll get the training and support you need to thrive in the booming pet industry. To learn more about partnering with Aussie Pet Mobile to launch a franchise, inquire now!

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