41 percent of Americans, according to a study released earlier this year, live paycheck to paycheck. Half say they have nothing left over at the end of the month after they pay for living expenses, and 8% say they don’t have enough to cover all their daily needs. Clearly, Americans could use some help with their finances, and financial franchisees can answer this need.
Tax preparation franchise businesses may be the most obvious type of personal finance service franchise, but they are not the only game in town. Cash-strapped Americans often need financial advice or financial services that wealthier consumers might look for in banks.
Credit Repair Franchise Companies
Poor credit ratings can wreak havoc on people’s lives by increasing their interest rates and credit card payments, spiraling them further and further into debt. Poor credit ratings can also affect people’s abilities to make ordinary transactions or even to get jobs. Prime National Credit Repair is a franchise that targets customers who need to repair their credit in order to be able to lease an apartment, buy a home, or to have a credit card for emergencies. Consultants work with customers to dispute inaccuracies on their credit reports with credit agencies so they can work toward rebuilding their credit one step at a time.
There are businesses that prey on people who have bad credit scores, using shady methods to make their credit look good instead of actually repairing their credit. Prime National warns consumers of these companies that “create” new identities for people instead of working on their credit, using illegal practices that could land customers in jail. With a nationally recognized name that has received great press from national publications like Newsweek, franchisees can avoid being associated with shady practices and feel confident that they can help customers.
Cash Plus is another business that provides franchisees with that all-important good name. Check cashing, payday advance loans, money orders, and wire transfers are another set of services that are necessary for consumers who may not have bank accounts — but which can also suffer from a bad reputation. Cash Plus says they’re as close to a bank as you can get in franchising but because they aren’t a bank, they have a lot more flexibility.
According to Forbes, 28.3% of Americans use alternative financial service companies like Cash Plus to conduct their household business. Many of these people — 821,000 last year — have no bank account. Others have bank accounts, but choose to use alternate services, often because they find them more convenient, believe they’ll have easier access to their services, or are simply more comfortable with AFS services.
Cash Plus franchisees can serve this large and growing segment of the population, secure in the good reputation of the franchisor.
When you’re looking into financial franchises, it’s important to do your due diligence to ensure you’re not signing up for a franchise you’ll regret later. While Cash Plus and Prime National Credit Repair are both highly rated by industry standards as well as the Better Business Bureau, not all franchises carry these awards. Franchise business opportunities in this niche can have a tremendous advantage over independent businesses that may spend years proving themselves, as long as the prospective franchisee makes sure to choose a reputable company.
