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Question added to topic FranchisesJune 22, 2009

Is there a way to determine the profitability of various franchises?

I'm trying to evaluate various franchise opportunities. However, obtaining information about profitability and how soon a franchise becomes profitable seems to always involve the tedious process of filling out an application and a questionnaire, waiting for the franchisor to do a credit/asset check and going through everything else they require to determine if you are "worthy" of doing business with them.
Yes there is a published source for finding earnings claims information on hundreds of franchise companies, though almost no one outside the industry knows of it.

The source is a book called "How Much Can I Make" and it is a reproduction of the earnings claims that many franchise companies put in their federal disclosure documents. The book is updated every year to keep it as current as possible.

The bad news is that you'll have to buy the book. The publisher is Source Book Publications. You can call them at 1-800-841-0873 to find out the cost and availability data.

Hope this helps and good luck on your research.

Jeff Elgin has almost 20 years of experience franchising, both as a franchisee and a senior franchise company executive. He's currently the CEO of FranChoice Inc., a company that provides free consulting to consumers looking for a franchise that best meets their needs.

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