3 Passive Income Stocks for Budding Entrepreneurs

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!

Source Fool.com