How to Find Your Earning Potential as a Property Management Franchisee

How to Figure Your Earning Potential as a Property Management Franchisee

When you're looking to buy a franchise, one of the biggest questions you are asking yourself is probably "How much money can I make?"

Although its the main concern for prospective franchisees it is also the most difficult to determine because there are so many variables involved. Franchisors can easily and readily tell you how much it is going to cost to get your franchise going, but none of them can guarantee that you will be a success.

Most Property Management Franchises will direct you to their Franchise Disclosure Document (FDD), which outlines what they are required to disclose to prospective buyers. The FDD includes information about the franchise, including the company background, management team, a breakdown of expected costs, the total investment required, and more. The FDD will also outline obligations of all parties, and it is important that you read and understand it. It is probably wise to have a lawyer to help you review the document as well.

Regardless of whether a franchisor includes details around unit earnings or not, you can do a pretty good job at estimating your potential earning potential on your own or with the assistance of an accountant or financial professional. To do so you'll want to look at the royalty payment information that is required for all franchisors to disclose.

Figuring Your Earning Potential

If you want to get an accurate look at what your earning potential is with a franchise then its probably best to speak with current franchisees.

When investigating a franchise, one of your best sources of information is by picking up the phone and having a conversation with the current franchise owners. You can ask them any questions about their experience, the training, the quality of the support and systems in place, as well as financial questions about their business.

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