How Brands Can Attract Millionaire Investors

Every franchisor would love to have a franchisee with millions of dollars. Here's what potential investors look for in a brand before coming on board.

By Matthew DiazStaff Writer

SPONSOREDUpdated 1:01AM • 05/27/16

Part of growing up in the United States is cherishing the idea of “the American dream,” and part of that dream is prosperity. We all strive to build a better life than the generation before us, and we do this by building wealth and acquiring assets. But no symbol of success is more iconized than “the millionaire.”

That same mentality is reciprocated in franchising, too. Every franchisor would love to have a franchisee with millions of dollars, because that ultimately translates into millions of opportunities for development.

Some brands in the industry, like JAN-PRO, require franchisees (Master Franchisees, in this case) to have a net worth over a million dollars to even get started. 1851 Franchise had the chance to speak with Scott Thompson, Vice President of Development for Premium Franchise Brands, parent company to JAN-PRO and Maid Right, about how to successfully target millionaires.

What's the most attractive aspect of a franchise to a potential millionaire franchisee?

Scaleability, ROI and the ability to build recurring revenue and a long term annuity are all things that potential franchisees look for when considering a brand.

Are there any selling points that are not monetary?

They are most attracted to a business where they can give back to the community, using their transferable skills to help mentor others to be successful. They typically love a business in which they can delegate to other professional employees that allows them flexibility to spend time with their family and travel.

What aspects will turn a potential millionaire franchisee off?

A fast-talking salesperson who does not listen and tries to oversell them on the franchise.

In your opinion, is it easier to attract a millionaire with a concept that is proven or with a concept that has a lot of growth potential?

It really depends. Some millionaires are more entrepreneurial and like to be a part of a high-growth startup. Others are more conservative executives who are not too entrepreneurial and want a proven system with a ton of support. I would say most franchisors prefer the more conservative millionaire who is going to follow the systems and grow a big business.

Are millionaires typically inclined to do more or less research when deciding on a franchise to invest in?

Your executive millionaire who has worked their way up the corporate ladder and saved their money will be very conservative and will do a tremendous amount of research and validate the concept before making a decision. Your entrepreneurial risk-taker millionaire will buy into the startup and negotiate a good deal upfront; they are more dependent on their skills to grow the franchise.

As a brand, beyond money, what does JAN-PRO look for in a millionaire? Are there scenarios where a millionaire might not be a good fit?

We are looking for someone with a sales and marketing mindset, someone who wants to mentor others to be successful and someone who has strong values, such as respect, integrity and compassion. We are also looking for someone that has good general business skills and understands how to budget.

Sometimes millionaires don’t want to be a part of the day to day and they want to delegate everything. This person would not be a good fit because you need to be hands on the first couple of years as the business grows. We also don’t want someone who is going to sit behind a desk all day and not work with their staff, franchisees and customers. We want someone who is engaging and will represent the brand well and have consecutive year over year sales growth.