For Subscribers

Money Talks The most common question asked by prospective franchisees is, 'How much money can I make with this franchise?'

It can be particularly frustrating to discover that receiving and verifying financial performance information is quite often the most difficult part of researching any franchise opportunity.

Franchise companies are restricted in terms of what information they can offer a prospective franchisee concerning how much money can be made in the business. They aren't required to provide any such information, but if they wish to do so, it must be in writing in Item 19 of their Franchise Disclosure Document.

Other than whatever they choose to disclose in Item 19, franchisors simply say that a prospective franchisee must contact the existing franchisees in the system to determine the answer to this fundamental question. As you can readily imagine, many existing franchisees are reluctant to discuss what they consider to be very personal and confidential information with a stranger, making this problematic at best.

Nevertheless, this is not an area where you can afford to compromise your need for information. Don't purchase a franchise until you're sure you have a clear and accurate picture of what the average financial performance is at the unit level. If you can't reach this level of clarity, the only truly safe decision is to choose a different franchise.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

Jack Dorsey Announces WhatsApp Competitor Called Bitchat

Twitter co-founder Jack Dorsey went on X to reveal a new messaging app called Bitchat that will not require internet connectivity.

Business News

OpenAI Executives Look For These 3 Key Traits in New Hires: 'It's Actually My Advice to Students'

These traits matter more than a Ph.D or formal schooling in AI, say the executives.

Business News

'The Market Is Hot': Here's How Much a Typical Meta Employee Makes in a Year

Data from federal filings offers a glimpse into base salary ranges at Meta for roles ranging from AI research scientist to data analyst.

Business News

Xbox Producer Tells Laid-Off Workers to Turn to AI For Advice If They're Feeling 'Overwhelmed'

Microsoft announced mass layoffs last week, affecting around 9,000 employees.

Leadership

Being 'Nice' Almost Cost Me My Business — Here's What I Do Differently Now

Don't let politeness undermine your authority — here's how I rebuilt my client relationships