Learn how the Federal Reserve's recent interest rate cut is creating a favorable environment for franchise growth

 Learn how the Federal Reserve's recent interest rate cut is creating a favorable environment for franchise growth 

With tax incentives and easier financing, now’s an ideal time to explore business ownership.

In this episode, we, share insights on Paymore, an innovative electronics franchise that's successfully blending e-commerce with brick-and-mortar. We’ll explore what makes Paymore attractive and discuss the key qualities today’s franchisees need to thrive, from tech skills to community engagement.

Tune in to discover how to navigate this growing market."

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Transcript

Speaker 1: 0:23

Hi everyone, jack Johnson here with your Inside Scoop for Friday, november 8th 2024. Wow, quite a week. Okay, here's what's happening in franchising. I want to get to the franchises that people have bought this week. But here's the other thing the Federal Reserve's decision to cut interest rates by a half point is a big deal for business ownership. I think this is going to increase franchise purchases.

Speaker 1: 0:48

Now here we are. We are in early November. November, december generally slower times, as we kind of come in on the holidays. Historically, people aren't buying as many franchises during the holidays, but then what happens is, come January, it just explodes. We see interest, we see competition.

Speaker 1: 1:09

So my point to you is is that we're in kind of an interesting time for people who are thinking about business ownership. There's a natural inclination to say, okay, well, after the election maybe we'll start looking at that franchise. Okay, the election is done, let's put politics aside. We're going to have a very favorable tax environment for the next five years, so corporate tax rates are going to continue to be very attractive to business owners. There's a sense that franchise purchases will be increasing now that the election is done and these rates have been cut, so, as loans become more affordable, those in the know. Those in the know being franchise financing companies anticipate a surge in franchise purchases, so aspiring business owners are going to find it easier to secure financing for their first location, and even existing franchisees will be able to expand their operations, adding new locations and territories. So I mean essentially, lower monthly payments, mean higher cash flow for franchisees and that makes it easier to reinvest in their business or to take the next step forward in their first business. So it's worth it for those of you sitting out there who are thinking about this If you want to explore financing whether it be SBA loans and K rollovers to have a conversation, because we've we've got connections. I'm happy to introduce anyone to our franchise financing connections. Just text me at 305-710-0050. So that's really the first big news of the day for me is that it really it's creating a more favorable environment for lending for franchisees. Secondly, I do think, for those of you that are thinking about this, this is a good time. You're going to have less competition during the holidays and you might even be able to get a better deal done. So if you'd like me to help you with that text, 305-710-0050.

Speaker 1: 2:53

I want to talk to you about the franchise market, but the sort of thought here is to focus in on a particular franchise that sold this week. The franchise I want to focus on today is Paymore. The reason I want to focus on Paymore is it is a fast-growing brick-and-mortar electronics franchise opportunity in a unique industry that combines e-commerce with electronic sales and trade-in. It's considered one of the hottest markets in the world Electronic sales for smartphones to gaming systems, computers, tech gadgets. It provides high customer retention rates, growing margins and low overhead. So here's the deal.

Speaker 1: 3:29

There is a group of food franchisees that just bought like 30 paymores, 30 units. That's a really big deal. So the question is why? Why would someone do that? Well, they say new franchise, they're a new franchise category with zero to little competition. They say there's an immense market, everyone owns electronics and constant demand, proprietary technology, pay more, pos systems, franchise portal and a new mega site. They say their ideal franchisee is a dynamic, driven and tech savvy entrepreneur. They have passion, they have business acumen and resources to develop multi-units and a desire to be involved in the community. I mean, I think that's right. I tech savvy entrepreneur. They have passion, they have business acumen and resources to develop multi-units and a desire to be involved in the community. I mean, I think that's right. I think, overall, if you want to be successful in a franchise, you've got to bring. You've got to bring that, that passion and that desire to lead a team, to drive sales and to make sure you're delivering great customer support.

Speaker 1: 4:25

So the number of franchises that are currently operating for Paymore sits at about 46 and they've got one corporate location. They're available all throughout the United States. This is not home-based. This is not absentee. Average number of employees required is five to seven. They are E2V visa friendly. So for those of you that listen to this on the United States, that's good to know. Okay, franchise fee for a single unit is $35,000. Royalties 5% and, by the way, for those of you that don't know, royalties are collected on the gross.

Speaker 1: 4:55

In my opinion, as someone that owns a franchise and operates a franchise, hiring is our biggest challenge, right? So the support systems that a franchise provides to me one of the checks I'm happiest to write and it's not a check anymore. They pull it right out of your bank account via ACH, based upon what you collect. But it's one of the bills that I'm happiest to pay because my franchisor earns their money for sure. They say, the cash investments 250,000. Total investment 134,000 to 257,000. So what does that mean? What that means is well for my money, if they say 257, I'm probably, you know, making sure I have three, three, 50. To me, I think you'd always rather have more money available to invest in a franchise than less. Nobody ever went out of business being overcapitalized. They want you to have a net worth of at least 500 K.

Speaker 1: 5:46

This company was founded in 2011 and started franchising in 2019. We can save you two to $10,000 on this franchise. If you want to find out exactly how much, what the rebate is and if your territory is available, text me at 3 0, 5, 7. 1 0 0 0 5 0. But again, if you've got experienced food franchise owners investing in pay more to the tune of 30 units, that tells you something from the item 19 on this franchise is really really good for what it is. I'll leave it for you to get connected with the franchise or to discover what that item 19 is, but for the kind of, it's actually outstanding what this business can do.

Speaker 1: 6:24

So for today's inside scoop, here's what we're talking about. We're talking about pay more. We're talking about the rate cut, how it's going to affect franchisee financing and how we think that this is actually a good opportunity for you investors that are thinking about owning a franchise, but maybe saying maybe I'll wait till after the holidays If it's me, I'd begin the process Now. Historically, our process has been about four months for someone from our first conversation to when they become a franchise owner. So if you are going a retail concept like pay more, it's going to take you at least six months to get that thing open. Even if you began today with a Paymore, if you texted me at 305-710-0050 and said, hey, jack, introduce me to Paymore, you're not opening until Q4 next year.

Speaker 1: 7:16

Going for something like a home services franchise, like with what we Jill and I own with Pink's Again, three, four months to actually explore franchises and buy the franchise and figure out home services. It's another three to five months to get open. If you are thinking about gee, I'd like to be open by beginning of next summer, well, again, now's a really good time to begin. So rate cuts are great. Put politics aside. I think the uh where we're at with the current or the incoming administration we'll keep those sort of business friendly tax taxes in place, and pay more is an interesting franchise worth looking at, and if you want to find out how much you can save if you work with the franchise insiders on your franchise search with pay more, text me 3 0, 5, 7, 1, 0, 0, 0, 5 0. I'm Jack Johnson. This has been your Inside Scoop for Friday, november 8th 2024. Thanks for listening.