The Negative Franchise!

Is there really such a thing as a negative franchise? The IFG 50/50 franchise has sometimes been referred to as a negative franchise, not because of the income that franchisees generate, which we believe is above average, but because of a large array of components found in a normal franchise that just do not apply to The Interface Financial Group and their IFG 50/50 franchise.

We are talking about the fact that the franchise requires no employees, no rented or leased premises, no inventory, no long hours, no extensive travel, no advertising, no custom equipment or signage and, one of our favourites, no hard work.

While all these things may be considered by some as negative items, for others they represent very positive components that they are looking for in their franchise search.

Individuals transitioning from the corporate world into self-employment and entrepreneurship, usually want to travel with as little baggage as possible. They are looking for opportunities that for them are not only a solid business, but a business that comes with a positive lifestyle element – often something that was missing in their corporate life.

The IFG 50/50 franchise model is well-tried and tested but at the same time is very simple. Franchisees are engaged in working with business clients to accelerate their cash flow through the medium of an invoice discounting program. Franchisees do not lend money but buy specific current quality invoices at a discount to provide exponential growth opportunities, not only for themselves but for their clients.

Typically, franchisees are owner operators, and do not require any staff as all transactions are done in conjunction with the franchisor – another unusual feature inasmuch as the franchisor engages with franchisee in every transaction.

This franchise is all about money, people and technology. This is where the ‘no hard work’ element comes into play. Because the franchisor is engaged with the franchisee in all transactions, it also means that the franchisor handles all the paperwork involved in the financial transaction with the client. Franchisees are engaged by using their business background and business acumen, while the franchisor handles day-to-day paperwork, administration, bookkeeping, etc.

The franchise does not require any specialized equipment, and there is certainly no inventory to buy.  Because of the unique way that franchisees market their service, there is also a ‘no sales’ element to the franchise. Most of the business, handled by franchisees is business that is referred to them, so the franchise certainly appeals to entrepreneurs who do not see themselves in a sales role.

While there are many things that are not components of the franchise, one of the important aspects that is included is capital leverage. Every IFG 50/50 franchisee has the opportunity to leverage their capital to create income for themselves on capital that they did not deploy. This translates into working with other people’s money – OPM – and the use of other people’s money in business is an established way to create income on a rapid basis.

In his New York Times bestselling book, ‘Rich Dad Poor Dad’ Robert Kiyosaki popularized the idea of using other people’s money to build wealth. However, that narrative is focused on obtaining other people’s capital at a modest cost to make the formula work. The big difference with IFG is that there is absolutely no cost to our franchisees to use the leverage component and thus create an above-average return on their working capital.

Entrepreneurs making the quantum leap from a paycheck to self-employment need to know that when they leap, they will land on very solid ground. The IFG franchise provides that solid platform in the form of 45+ years of history – over 4½ decades of supplying the invoice discounting service to the business community. Over that time span not too much has changed at Interface with regards to the service, however the delivery method and the cosmetics now reflect a very substantial technology ingredient that enables us to do things in a much shorter timeframe, and certainly without ‘hard work’.

For entrepreneurs and would-be entrepreneurs looking for a franchise that has history and a proven established system that generates secure income working in a ‘core business hours’ timeframe, IFG represents a very positive rather than negative franchise opportunity.

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