Franchising is one of the most effective systems for providing services known today. Owning a Franchise Unit can be extremely rewarding for as little as a $49,000 investment. It combines the ambition and entrepreneurial drive of the small business owner and the experience and expertise of a larger company.
Owning an Area Representative Franchise is the Ultimate Franchise Opportunity. It provides numerous advantages and yields multiple streams of income.
ROYALTY & FRANCHISE FEE ADVANTAGE
The minimum investment for an Area Representative is $100,000 for a territory for a population of 3,000,000, and another $100,000 available for working capital to grow your franchise system.
Within the Lady Bug System, an Area Representative Franchise Owner receives 50% of each franchise fee and 50% of the royalty income. As an example, which is for explanation purposes only, not a guarantee, the current franchise fee is $30,000 per unit and the royalty each unit owner pays up to 10% of their gross sales.
For each unit opened in the development territory, the Area Representative would receive $15,000 (50% of the $30,000 franchise fee). By selling 35 units in this territory, an Area Representative would receive 50% of these franchise fees, and then the Area Representative would also receive 50% of the royalties. Each unit generally starts off by paying a royalty of 10% of their gross sales which equals a 5% royalty to the Area Representative.
As franchisee’s increase their revenue, the Area Representative’s royalty stream can increase each year. Area Representative’s also operate their own unit, generating even more income annually. Within 5 -10 years, depending on the Area Representative’s own unit growth, and the success of their franchisees, the financial rewards could be very substantial.
An Area Representative can also purchase any size territory based on population for higher income potential. For example, by purchasing a territory with 6,000,000 people, the income potential would be double!
OTHER SOURCES OF INCOME AND OTHER ADVANTAGES
- Building Equity. Once an Area Representative sells a few franchises and opens their own unit, they significantly increase the value of their Franchise business. Also as other units open in other territories and the Franchisor grows, their territory may become very valuable.
- Turnkey Unit Development. Develop turnkey units and sell them for a considerable profit to build additional units and royalty income.
- Financial leverage. Leverage the royalty stream to develop additional units and increase the royalty income and value of the Franchise territory.
- Sale of Additional Services. Area Representatives may be able to offer other resources to the franchise network such as accounting, bookkeeping, insurance, training, and/or consulting in return for additional fees.
- Prestige. The prestige of owning a Franchise and controlling an entire area can provide tremendous satisfaction and financial leverage.
- Very Few Employees. Typically an Area Representative will operate the Franchise by themselves as the consultant and start with a small staff of an administrative assistant, a trainer or technician and a sales person to operate their own unit. As their business grows larger they may need to add more staff.
- More Freedom. After having developed their area, it is not unusual for Area Representative’s to semi-retire and spend minimal time with their business while enjoying a large substantial income.
- Very Few Customers. An Area Representative’s clients are their franchisees. They help support them.
- Minimal Office Space & Low Overhead. An Area Representative can usually start with a small office space to run their own unit out of and also utilize the same office space to sell and support franchisee’s.
- No Experience Needed. With this Franchise opportunity, you will receive specific industry training and ongoing support.
