You wouldn’t think that someone that opened a sandwich shop decades ago would have ended up becoming some kind of a billionaire once all has been said and is now out of the way. However, the fact of the matter is that if you know what you are doing then pretty much any business can give you the kinds of returns you were hoping to obtain, and if you look at Jimmy John Liautaud you would notice that his story is a good one in that it shows how a simple sandwich shop can be turned into a multi-billion dollar corporate empire.
However, it is important to note that this success didn’t just fall into his lap. This is because of the fact that he actually worked hard to come up with a business model that worked. If you look at Jimmy John’s now, you would notice that they have nearly 3,000 locations. That is an enormous number, but what’s surprising is that the vast majority of these locations, 98% to be exact, are actually franchises that are independently operated. These franchises are essentially being operated in such a way that they have their own owner, and this owner sends a cut of the profits to the parent company.
This might sound odd for people that think that the only way to get rich is to own everything you work on, but if you apply economies of scale into the mix you would notice that it’s not actually that simple. Expansion is what is truly necessary, and franchising can help make this expansion possible because of the fact that it takes the financial burden off of you whilst still allowing you to earn quite a bit in profits.