June 9, 2006, Newsletter Issue #19: Low Cost Franchises

Tip of the Week

Low Cost Franchises cover a wide range of industries and services, such as snack shops, pizza shops, sign companies, and cleaning services. Each industry has its own general rules of thumb in terms of income potential. However, it generally happens that the lower the cost, the lower the income potential. Offsetting that is your time.

Franchises require more than the passive attitude of "throw in some money and sit back and get rich." You need to invest your time and energy in addition to your money. You'll probably make more money off a low cost franchise that you actively manage than by putting your money in a totally passive investment. Franchises generally require a larger investment of time and money in the beginning. By the third year, however, you should be on your way to a nice income.

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