Aren’t there only food franchises?
No. Franchising covers nearly ever industry you can imagine, spanning over 100 currently. Many you probably already know but weren’t aware they were franchises.
- Fitness (full gyms to specialties like kickboxing or pilates)
- Hair care (High end salons to low cost cutters)
- Pet care
- Children’s education to beginning swimming
- Home decor
- and many more!
What can Semfia do for me?
Semfia is an independent consulting agency that works with both individual investors and expanding franchise brands. Our advisors vet through hundreds of franchise models to determine who has the best ROI, management, long term viability, and understand their ideal franchisees. We help individuals looking to diversify their portfolio into semi-absentee franchise ownership by gaining insights into their investment strategy, long term goals, and career experience then matching them with qualified franchisors looking to expand in their region on a single-unit, multi-unit, or Area Developer basis.
How much does Semfia charge?
Semfia charges the franchisors for their services so there is no cost to the individual investor. It wouldn’t cost any more than if you did all the research yourself and contacted the franchise on your own.
How can I fund a business with retirement funds with no penalty?
How much do I need?
Although investment levels vary by franchise, the general guideline is to have:
- Combined net worth of at least $250,000
- $50,000 liquid from retirement funds, home equity, cash, or securities
- 650+ credit score
When considering a business investment, one should carry the same risk and reward concerns they would with any other investment. Franchising comes with it a verifiable track record, an established business model, training, and support to reduce your risk while increasing profits. Choosing a business in an industry that doesn’t correlate to the stock market can increase your returns in a bull or bear market.
I have a job, when would I have time to run an investment business?
Portfolio franchises are designed for those who are currently employed, retired, or have spouses looking to take charge. Your role as an owner is to manage a manager. Although they can become fully passive after a few years, typically there is a time investment of 10-15 hours per week.
Security is very important in an investment, how do I know if I’ve found a safe investment?
Every franchise must register a Franchise Disclosure Document (FDD) with the Federal Trade Commission (FTC).
In the FDD we’ll be able to review:
- Financial earnings of other franchisees
- Full financial statement of the franchise parent company
- Roles and responsibilities of the franchisee (you) and franchisor (parent company) so there are no unexpected duties in your role as an owner
- Franchisee contact information for vetting process and answer any questions you may have
- Any lawsuits against the franchise
- Total cost and breakdown to start the franchise
- Experience and background of all of the leadership team
Semfia Advisors have a great network of franchise attorneys to help you understand everything. Please do not seek advice from an attorney not well versed in franchise law.
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