How To Buy A Franchise

By Phil Amato First Coast News

JACKSONVILLE, FL -- Many people are breaking out on their own and opening up businesses. The bad news is 90% of start-ups fail in the first five years. The good news is 60%-70% of franchises are successful.

If you got a net worth of at least a $1 million then you can invest in Entrepreneur Magazine's top franchises of 2008. 7-Eleven tops the list, followed by Subway and Dunkin Donuts. Most of us don't have that kind of money but still have the desire quit our 9 to 5 jobs and open a business.

It was that desire that motivated Jeff Drawe from Jacksonville to open a 1-800-GOT-JUNK franchise. It's a company that removes junk from homes and businesses. "Our initial investment was $90,000," says Drawe. He and his business partner are in the Navy and used a Veteran franchise organization called VetFran for financial assistance. "It was seamless for us. It actually saved us $12,000 in our initial investment and the support, the service and the structure you get from 1-800-GOT-JUNK is very similar to the military."

What's not so similar is the company's guerilla marketing campaign. Twice a day, Drawe and his 1-800-GOT-JUNK employees do "the wave." They put on blue wigs and roller blades and head to Jacksonville's busiest intersections to attract new customers. They look like smurfs on skates as they hold Got Junk signs and wave to passing cars.

It's that passion Drawe has for his business that's the sign of a true entrepreneur. "You have to have that entrepreneur spirit. If you're going to own a business you can't be an absentee owner and expect to succeed. At some point you have to be a salesman," says Sunbelt business broker Sam Evans.

Evans recommends prospective franchise owners should focus on growing markets like the senior-care industry. Evans says Senior Helpers is a franchise that focuses on providing in-home care for the elderly. $75,000 will get you started.

Everyone needs a haircut. There are a dozen national haircut franchises out there. But Evans recommends SportsClips because it has hands on management assistance for new owners. "They have local representation. They have people locally who are representing the company. They know how to do things that can answer your questions," says Evans.

There are thousands of franchises available for purchase. Evans says make sure you do your homework because soon you'd be doing the work. "If you're not willing to do the dirty jobs in addition to taking the glory, you're not going to be successful," says Evans.

Jeff Drawe thinks he made the right choice. There's money in junk. Drawe expects to recoup his initial investment in 18-24 months. Until then he and his employees will be busy hauling away what other people don't want.

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