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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
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…that’s why you should use Guidant!
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.
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