Although franchising is an often-overlooked option in the real estate market (at least, insofar as beginners are concerned). It offers a tremendous opportunity to the erstwhile investor. For one thing, opening a franchise business saves you a ton of resources for promotional endeavors. Since the brand name is presumably already very well-marketed. Additionally, the franchise, itself (the parent company, specifically) often has significant resources to aid you in business.
Franchise Business Roadmap
Be advised that although opening a franchise business has many, many benefits and outright advantages over other real estate alternatives. It does require an upfront investment that is greater than the norm. You will be responsible for a franchise fee that’s usually in the tens of thousands of dollars, as well as credit history requirements. You’ll also need to open a viable business model as a proposal and await acceptance of your application before you can use the franchisor’s name to open your store.
What to Expect
Some of the things that you can expect after opening up your franchise business store are training and potential discounts from the parent franchisor (you are the franchisee, for reference). The brand has a vested interest in your success since you will be paying them royalties in many cases – and furthering their brand recognition in all cases. Of course, the existing business brand has an undeniable record of success. This is why they can even offer franchising opportunities in the first place.
Furthermore, you can even sometimes get a loan from the franchisor. Which facilitates an otherwise arduous process when done outside via traditional sources. This includes equipment loans, appliance loans, construction loans, etc. If you opt to go to a bank or other lending institution, then you can expect a better application experience due to the inherently lower risk associated with the franchise business, in general.
In closing, the following franchise businesses are ripe with opportunities. Hair salons, fitness centers, programs that tout children’s enrichment, property management outfits, senior care, and the age-old vending machine establishment. There’s more -but these are a good start.