Owning A Franchise
Investing in a franchise is an alternative to buying an existing small business or starting a new one from scratch. Franchises offer a proven system which have been tested and replicated several times over. If you are currently working in Corporate America or do not have any experience owning or working in a small business then Franchising might be the answer.
Franchisees usually follow standard daily procedures set forth by the Franchisor. Owning a single unit of a franchise is equivalent more a less to a store/office operations manager position. A multi unit operator would compare a district manager and an area developer/master franchisor could be looked at as a regional manager except on a smaller scale. The difference is that you have an investment at risk and the potential to build equity over time. You are actively involved in participating in the appreciation of your investment. This is not only a monetary investment but also an investment in yourself.
Unfortunately, building real equity is not possible as an employee. Unless you are a high level executive or get lucky and your company stock explodes, making all of the employees billionaires.
There are around 3,000 Franchises available in the U.S. Some are mega size like McDonalds, Subway, 7/Eleven and Little Cesars. But there are many others covering subject areas such as home care, auto, logistics, marketing, fitness, gourmet foods, computer repair and pet care. In summary, you are almost sure to find a franchise that meets both your interest and financial capabilities.
Not all 3,000 are going to be considered grade A type investments. Our firm, Suncoast Business Consultants represents about 350 franchises that have been vetted by an organizational review of our peers. You can look over these options on this website. We can then review those in which you have interest, review other factors and reduce your choices for example to the top three to five.
One of the main advantages of a franchise is the ongoing support you receive from the Franchisor. The Franchisor depends on your success much like a major corporation depends on the success of its individual stores. There are complete teams that take on some of the most complicated and mundane tasks. The Franchisor is the eyes and ears of your investment. It is a team effort.
Another benefit is the name and brand recognition. Take for example the classic case of McDonalds or 7/Eleven, a hamburger store and a convenience store; both are basic concepts except for the brand recognition and location factors. This is another benefit of a Franchise. This example is in the simplest of terms but it conveys the general idea.
Lower risk is another key benefit of owning a franchise as compared to a small businesses. It is a fact that less franchises fail for one reason or another compared to small businesses. The experience and efficiency of the franchisor is often able to anticipate problems ahead of time and look to correct them in a timely manner. You do not have to steer the ship alone.
If you would like to get more informing on Franchising you can click on the Franchise tab to explore some of the companies we represent. By working with a Franchise Broker/consultant you can sort through the many options with ease and have your questions answered by experienced professionals.
An investment in a franchise either new or resale can often times qualify for an immigration investment VISA. In these cases we recommend you consult an attorney for more clarification.