If you have a look at chains like McDonald's, Pizza Hut, Subways or Starbucks, you can’t imagine a solid business like this is going to fail. This is your security about owning a franchise and most people when considering going into a business like this will be prepared to put down the extra cash simply because they know it is stable.
You may ask yourself why a coffee shop situated in a beautiful part of town, with good service and a pretty view does not do nearly as well as Starbucks. The answer to that is that at a chain like this the customer knows what he or she is getting and going to a new spot is like getting out of their comfort zone.
You already have the name. You don’t need to establish that and this is what you are paying for.
Why Start a Franchise?
It’s true, it’s definitely less expensive starting your own business with your own unique idea, but the problem is that you can never be 100% sure that you are going to be getting continuous traffic.
There is the other side to the story where franchises will lay down strict rules and regulations about what can be done and what can’t be done.
People sometimes feel that after paying for the name it almost doesn’t feel as if you own the business because you have to stick to the menu, the ingredients and all the requirements that the franchise has set out.
With that said, if you are looking for profitable business from day one and you are not looking for the glory then this is a good reason to start this sort of business.
How Much Does it Cost to Start a Franchise?
The costs vary depending on what you are looking to buy. The advantage to this kind of business is that banks and financial institutions will be a lot kinder to you because they see this as a low-risk enterprise and therefore, there is less chance of having a loan rejected.
If you own a conventional business you will have to buy absolutely everything from scratch, from the decor, tables and chairs to the appliances in the kitchen.
This is where the franchise will help you out. They provide you with a lot of assets to get you started. They will give you full training before you get started so for someone who has never been in business this will be a big help.
This is actually a requirement because everything has to be done in a certain way. A lot of people prefer to go this route because there is more support.
If you have a problem with anything it will just mean calling them up. They are just a phone call away. If you are on your own, however, it is another ball game and it can become very stressful if you are all alone, especially if you are brand new to the business.
The Best Franchise Opportunities
There is no one “best” opportunity. This is more of an individual thing. Normally, someone would not go into a business without knowing something about it, although with the extensive training that you get in most franchises this should not be a problem.
What I do stress over and over is that you should love what you do and yes, it is possible to be paid for something you are passionate about. We seem to think all the franchises are based around the food market.
However, you will find a lot of opportunities in a lot of different sectors so if golf is something you want to spend your days doing then find a franchise selling golfing equipment. You obviously have to be realistic and analyze the company.
Look at their sales record and if you are not very good at this thing then get someone to help you out. You will also want to know how much of the profit you will be getting because this also varies.
Some franchisors will be a little more relaxed than others in the way that they operate. Some are very strict and you may not feel as if you are your own boss, but others won’t mind if you want to change the décor or operate on a different level.
Basically, you are representing the company and this means that staff have to know what is going on and uniforms and supplies have to be in good shape.
Top 10 Most Affordable and Popular Franchise Opportunities
- Jimmy John’s – for an investment of under $400, 000, you could also have your own sandwich shop.
- The Maid’s International – this costs just over $100, 000 initially to get started and has proved to be very popular.
- Merry Maids – investment of $66, 000. Everyone needs their windows and their homes cleaned. This is a good one to think of.
- ServPro – For an investment of $150,000 you can own a fine business that contributes to disaster management, such as helping with situations like floods and fires – cleaning buildings.
- Supercuts – Only $150,00 needed for this start up. Everyone needs their cut and not every mom or wife is able or willing to do that. This company trains you and gets you set up for business.
- Edible Arrangements – This has been going since 2011 in China and now costs just over $200,000 to get set up. These are sold as popular gift baskets.
- Anytime Fitness – For $200.000 you can have your very own fitness club and business. This is offered 24 hours a day all year around.
- Massage Envy – This one is half a million and it may sound like a lot compared to the others, but if you take a look at the profit made in the year, you will see why it is so popular.
- Pronto Insurance – This company is based in Texas, and at $60,000 it is really a steal, especially when insurance is something that people struggle with.
- 7-Eleven – For $400,000 you could be walking away with your very own store. These have always been successful, but at the end of the day it is what you put into it.