Franchises
These days, one of the most popular ways of starting your own business is to buy a franchise. Generally, when you purchase a franchise you are buying an established brand name or service, a way of doing business and a particular region or market within which to operate your franchise.As a rule of thumb, the more expensive a franchise is to buy, the more profitable and secure that franchise is likely to be.
The best known example of a franchise in the world is a McDonalds Restaurant. They are also the best example of a higher price being attached to a 'safe' business.
This perceived safety is one of the main reasons that people cite for getting into a franchise. But make no mistake. Franchises can fail. Just like any other business, you must put in the effort in order to reap a return.
Typically a Franchise will cost you:
- An upfront payment to secure your franchise or area
- An annual or monthly fee calculated as a percentage of your turnover
- An annual or monthly advertising fee
This training and guidance is another reason why franchising is so popular, especially with people who are new to business.
For links to additional franchise resources click here