5 Types of Wealth You Can Build Through Franchising

Most of the candidates we work with are interested in franchising for two primary reasons: to gain more control over their professional lives and to build wealth. Like those candidates, you probably know that franchising will give you more freedom to pursue fulfilling work, more control over your schedule, and the opportunity to reward yourself for your work. But did you know that franchise wealth-building goes far beyond the income you can earn? In fact, there are at least five different types of wealth you can build through franchising.

Wealth Type #1: Income

Earned income is the most obvious type of wealth that comes from franchising. When you’re a franchise owner, your income is up to you. The harder you work and the more you grow your business, the more you can pay yourself. You’re not limited by salary ranges, commission caps, or someone else’s determination of your worth.

We do recommend investing at least some of your profits back into your business–but if you want to take 100% of your profits as personal income, you can do that. You can use your income to elevate your lifestyle, save for retirement, give back to your community, or even invest outside your business for yet another source of wealth. Regardless of your choice, the money goes to your bottom line, not an employer’s.

Wealth Type #2: Real Estate

Brick-and-mortar franchise owners also have the opportunity to build real estate wealth through franchising. If you’re planning to set up a brick-and-mortar franchise in an area with reasonably-priced commercial real estate, you should consider buying your building instead of leasing it. Multi-unit franchise owners and area developers, especially, can build significant wealth this way.

Of course, you will need more startup resources to take this path. But owned real estate can provide your business with more stability–you won’t have to worry about rent increases forcing you to move. It can also serve as collateral for business loans, make your business more attractive to potential purchasers, or provide you with a large lump sum if you decide to cash out for retirement.

Wealth Type #3: Generational

Most of our candidates aren’t just thinking about themselves: they also want to do what’s best for their families. If you’re like them and want to leave a legacy, generational wealth is perhaps the most important type of wealth you can build through franchising.

Generational wealth comes in multiple forms. There’s cash, of course. You can use the income you earn from your franchise to set aside money for your heirs. Franchising can also help you create generational wealth indirectly. For instance, you might use your franchise wealth to fund your children’s college, buy them a home, or invest in their first business–all ways to give them a head start on earning their own wealth. Finally, the franchise itself can become generational wealth if you pass down or transfer the business to a child.

Wealth Type #4: Connections

When you buy a franchise, you also buy into a network of fellow business owners. In the best franchise companies, these connections function as a kind of wealth. Their mentoring, advice, and support can smooth your road to profitability, make you a better business owner, and increase your quality of life.

Plus, once you make these connections, they’re yours to keep. Even if you retire or leave franchising, you can still maintain the relationships. They can become assets that enrich your life–and any new business ventures you might undertake.

Wealth Type #5: Experience

Running your own business is an experience like no other. Even if you’ve run a nonprofit or a division for a company, franchising will introduce you to new ways of thinking, new responsibilities, and new opportunities. As your business grows, you’ll grow, too. You’ll learn valuable lessons that will increase your competence as a businessperson.

For these reasons, we think of experiences as a kind of wealth. As they make you a better business owner, they increase your ability to build other types of wealth, like income. They can also help make you a better person by increasing your patience, confidence, and integrity. And qualities like those are among the most precious kinds of wealth you can earn.

Ready to start your wealth-building journey? Lauri and I are here to help smooth your path, and our services are free to you. Book a 20-minute call with one of us to start the process!