Franchising is more than just an engine that has driven entrepreneurism this century – it’s the vehicle that has given many of us the chance to reach that Great American Dream of independence, security and for some great wealth. And, while the opportunity exists, and thousands of franchisees, franchisors and suppliers to the industry have reached that magical seven figure net worth – most won’t. But a formidable number of millionaires today trace their emergence into financial freedom to franchising because they either had a great idea upon which to build a franchise system or were fortunate enough to discover and join the right franchise system. However, being a franchisee alone will not get you there.

Franchisees often refer to themselves as entrepreneurs but for most of them, entrepreneur is spelled with a small e. What’s missing is the passion for more – the ability to take the structure of the franchisor’s system and having a vision, take risks and reap the greater rewards than the simple licensing of a business concept can give them. Great franchisees are good at reading maps and following directions. They are implementers of systems designed by others. True Entrepreneurs on the other hand are good at charting maps and defining their destiny. They can take the basics available to everyone in the system and achieve more. That’s the big difference. It’s the common thread of the Entrepreneurs profiled in the sidebar to this article and is the historic ingredient for most successful people – whether they are in or out of franchising.

Often when working with an emerging franchisor in our consulting practice, or with an established franchise system that seemingly has stalled, clients will have a moment of doubt about the future. It’s a natural reaction to fear of the unknown. Seemingly as either justification or support for their fears they lament for the opportunities that the past had provided. A period of time when concepts were fresh, the consumer was more forgiving and market saturation was not a concern. In many ways the past was easier. For franchisors there was an abundance of new franchisees looking for opportunities and fewer opportunities for them to choose from. For franchisees, markets were wide open and local competition was fragmented among non-branded local competitors who could not long survive against the strength of a growing franchise system.

In hindsight though those were the hard times. Capital markets, banks and other lenders, leasing companies, landlords, the press and much of the public all looked on franchising the same way they looked at multi-level marketing or other get rich schemes. Getting funds to expand came mostly from second mortgages on homes, loans from family and friends or savings. Except for a few giants like McDonalds selling stock on the public market was unthinkable.

Disclosure legislation at the state and the federal level was either non-existent or brand new. Because of that protection for prospective franchisees, which came from disclosure, was missing. The emergence of modern franchising as a reputable way to conduct distribution and its period of greatest growth came following the enactment of disclosure.

Multi-unit ownership by franchisees was for many systems unthinkable. To be successful as a franchisor many of the pundits said that each unit must be owned and operated by a franchisee. Opportunities for growth within many brands were extremely limited.

Consumers viewed products from franchised locations as secondary – at best.

Today much of those barriers are behind us. Franchising has emerged and without the constraints of the past the opportunity to become a millionaire is not only possible, for those who are Entrepreneurs with a capital E – is quite probable.

Multi-unit ownership is not only common today – for most franchise systems it is the preferred method of expansion. The ability to leverage a franchisee’s talents over multiple locations allowed the franchisor to reduce their costs in supporting the system and allowed them to invest in system improvement while opening up additional markets both at home and oversees. And consumers appreciate the consistency that comes from a franchised system.

Franchisees, with capital and funding available in abundance are not only developing new locations, they are acquiring existing locations from their franchisors or from franchising who are retiring or exiting the system. Some are even purchasing their franchisor’s system and becoming franchisors themselves. Many of the modern day franchisee millionaires measure their wealth in the cumulative net worth or market value of their operations. Many are the former franchisees who sold their existing operations and have reinvested in new opportunities.

What does it take for you to become a millionaire in franchising?

1. If you’ve done your homework and bought a franchise from a solid franchise system – follow the rules and procedures set by your franchisor. Focus on building your business without reinventing the wheel.

2. If you are not already, become impatient with the present. Complacency with where you are and what you have is an anchor. Develop a vision and move towards it.

3. Constantly upgrade and improve what you own so that its value grows. You’ll probably need what you have to get where you are going. Make sure it’s strong.