{"id":8349,"date":"2013-02-28T15:02:30","date_gmt":"2013-02-28T15:02:30","guid":{"rendered":"https:\/\/www.thefranchiseking.com\/?p=8349"},"modified":"2023-04-03T14:11:45","modified_gmt":"2023-04-03T18:11:45","slug":"break-even-in-a-franchise","status":"publish","type":"post","link":"https:\/\/www.thefranchiseking.com\/break-even-in-a-franchise","title":{"rendered":"Breaking Even In A Franchise: When Does It Happen?"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-8351\" src=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/breaking-even.jpg\" alt=\"breaking even in a franchise\" width=\"299\" height=\"251\"\/><\/p>\n<p>Breaking even in a franchise is one of the most important things you need to find out about.<\/p>\n<p>That&#8217;s because you&#8217;ll know when your franchise profits will start rolling in. Got it?<\/p>\n<p>&nbsp;<\/p>\n<h2>When Do You Break-Even In A Franchise?<\/h2>\n<p>You&#8217;re not going to feel very good about things until&#8230;<\/p>\n<p><strong>You<\/strong> <strong>get to break-even in your start-up franchise business<\/strong>.<\/p>\n<p>That&#8217;s because pouring money into your new business-without much coming in, is no fun.<\/p>\n<p>But, when money <em>does<\/em> start to flow<em> into<\/em> <strong><a title=\"franchisee franchise business\" href=\"https:\/\/www.thefranchiseking.com\/future-franchise-owners-are-really-starting-to-worry-me\">your franchise business<\/a><\/strong>, your entire outlook on things will change.<\/p>\n<p>And, when your revenue increases-consistently, things <em>will<\/em> start to feel magical.<\/p>\n<h2>Ask The Question<\/h2>\n<p>If you ask the right questions of current and former franchisees during your franchise research (<em>and get answers<\/em>) you&#8217;ll be able to make <strong><a title=\"buy a franchise yes or no\" href=\"https:\/\/www.thefranchiseking.com\/make-sure-you-are-buying-the-right-franchise\">an intelligent fact-based yes or no decision<\/a><\/strong>.<\/p>\n<p>Stick with me; <strong><a title=\"best questions to ask franchisees\" href=\"https:\/\/www.thefranchiseking.com\/category\/top-40-franchise-questions\">I have the 40 best questions to ask franchisees<\/a><\/strong>.<\/p>\n<p><strong>Here&#8217;s question #29:&nbsp;<\/strong><a title=\"ask these franchise questions lower your risk\" href=\"https:\/\/www.thefranchiseking.com\/15-essential-questions\"><br \/>\n<\/a><\/p>\n<p>&#8220;<em>How long did it take you to break even in your franchise<\/em>?&#8221;<\/p>\n<p>&nbsp;<\/p>\n<h2>The Definition of Break-Even in Franchising<\/h2>\n<p>In franchising, break-even refers to the point at which the business generates enough operating revenue to cover monthly operating expenses and start paying back the initial investment.<\/p>\n<p>You need to find out how fast breaking even happens&#8230;on average.<\/p>\n<p>One of the reasons I recommend calling 10-15 current franchisees (<em>and 1-2 former franchisees<\/em>) is to get some averages.<\/p>\n<p>For example, maybe one or two franchisees broke even in only 6 months, 8 of them got to their break-even points in 12 months, and it took 18 months for the franchisee that you spent the day with. (<em>I want you to visit at least one up and running franchise location as part of your research<\/em>.)<\/p>\n<p>&nbsp;<\/p>\n<h2>Information Is Power<\/h2>\n<p>It&#8217;s a lot easier to find information about <a title=\"top franchises to own\" href=\"https:\/\/www.thefranchiseking.com\/revealed-the-top-467-franchises-for-2019\"><strong>the top franchises around<\/strong><\/a> than it used to be.<\/p>\n<p>But&#8230;and this is important, the massive amount of information that&#8217;s only a mouse-click away is not&nbsp;necessarily&nbsp;<em>factual<\/em>.<\/p>\n<p>Consider the source&#8230;.and what this source is trying to accomplish by putting it out there.<\/p>\n<p>Tackling something as big as what you&#8217;re thinking of doing-becoming the owner of a franchise business, needs to be done a little at a time.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/farm4.staticflickr.com\/3422\/3358790995_78118dcd47.jpg\" alt=\"Elephant\" width=\"400\" height=\"500\"\/><br \/>\n<strong>How do you eat an elephant?<\/strong><\/p>\n<p><em>One bite at a time.&nbsp;<\/em><\/p>\n<p>(<em>Courtesy of <a title=\"gerald moriarty chicago\" href=\"https:\/\/www.examiner.com\/article\/franchise-expos-exciting-events-the-chicagoland-area\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Jerry Moriarty<\/a><\/em>)<br \/>\n*Images courtesy of wikipedia<br \/>\nkeepitsurreal on Flickr<br \/>\nStuart.Bassil on Flickr<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Breaking even in a franchise is one of the most important things you need to find out about. That&rsquo;s because you&rsquo;ll know when your franchise profits will start rolling in. Got it? &nbsp; When Do You Break-Even In A Franchise? You&rsquo;re not going to feel very good about things until&hellip; You get to break-even in [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":8351,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[2123,32],"tags":[1565,1566],"class_list":["post-8349","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-a-franchise-business","category-franchise-purchasing","tag-break-even","tag-how-much-money-can-you-make-as-a-franchisee"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>When Does Breaking Even Happen In A Franchise?<\/title>\n<meta name=\"description\" content=\"Important franchise question to ask franchisees: When does breaking even happen in a franchise? 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