Low Cost versus Higher Cost Franchises?
Low cost franchises cover a wide range of industries and services, such as snack shops, pizza shops, cleaning services, etc. Each industry has their own general rules of thumb in terms of income potential. However, in general the lower the cost, the lower the income potential. Offsetting that is your time. Most franchises require more than a passive attitude. 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, you should be on your way to a nice income.
