Many entrepreneurs and investors dream of opening their first franchise and then building an empire of them while living off the streams of cash flow. This can be a great investment, but it also often requires a significant upfront franchise fee payment to get started as well as other requirements, such as a certain level of net worth.
For example, while the franchise fee to open a Wingstop (NASDAQ: WING) is fairly low at $10,000 to $20,000, after all other costs to open are considered, the total cost can range from an estimated $347,600 to $759,100. A potential franchisee also needs a net worth of at least $1.2 million and a liquid net worth of at least $600,000. The cost to open a McDonald's (NYSE: MCD) franchise is also over $1 million and requires a significant minimum net worth to get started.
If you don't have that much, there's no need to despair. You can instead build up a nice nest egg with some serious dividend income by investing in a portfolio of stocks with franchise-based business models. As an added bonus, this also takes a lot less sweat equity than actually opening a franchise!
For further details see:
3 Passive Income Stocks for Budding Entrepreneurs