Posted by JP on September 27, 2002 at 13:51:23:
In Reply to: Ok, I looked at their website posted by John Behle on September 27, 2002 at 12:18:27:
The franchise fee is only 15k for a "small market" and up to 30k for a "large market" ... my area is considered a small market so it would only be 15k, if I was even interested in their franchise. The bulk of the 88-160k they quote is your working capital ... money you need to get started buying the commissions/receivables. The low end of $88k includes a 15k franchise fee, 60k capital pool, and about 10k in misc expenses to setup a small office i.e. computer systems, phones, fax, copier, signage, attorney fees, etc. So really it's not that bad.
But mainly I am/was more interested in hearing from people like yourself as to what you think of this business model ... moreso than this specific franchise. And from what you've said it can be a good business it sounds like. I just keep thinking I'm missing something ... it sounds like the "perfect" business. A practically endless supply of clients who want your service, come back to you again and again, and you are able to make 50-100% a year on your money. It just seems a lot better overall than the traditional mortgage note business. At least to me anyway. It seems like it would be pretty tough to buy or structure a mortgage note that yields 50% or more, especially in the current environment...