Opening a Franchise Business Opportunities

in Business Ideas

For the entrepreneur looking for a profitable business opportunity, opening a franchise may be the best idea. In the franchise model, a business is set up locally, following the business plan of an established company. For a fee the franchisee can set up an independent location that would otherwise appear to be part of a chain.

While the start up costs range from a few thousand dollars to over a million, and franchising fees must be paid regularly,  there is far less risk than opening an individual business. With the franchise comes a proven business model, a record of success, and a well developed image. Corporate headquarters can advise new owners on everything from how many employees should be hired initially, to how much commercial insurance should be taken out on the store. Several different types of businesses have flourished using the franchise model. From fast food restaurants to cleaning services to convenience stores, there are different industries and franchise investment opportunities available.

The most popular franchises in the United States are Subway, a sandwich shop; McDonalds, a fast food restaurant; and 7-Eleven, a convenience store. Each of these franchises has 20,000 to 30,000 locations.  Other popular franchises are H & R Block tax preparers, Jani-King commercial cleaning, Supercuts hair salons, and Dunkin Donuts. According to the start up cost for these range from $11,000 for a Jani-king franchise to $26,000 for H & R Block on the low end, and $500,000 for Dunkin Donuts to  $1 million for McDonalds on the high end.

As part of the initial costs, training is provided to insure the location owner understands business operations. This training assures the company the owner can provide the standards expected by the company. Often franchise operators claim this training period is too brief, causing them to rely on manuals and other materials during an unsteady opening and creates an investment that is just as risky as relying on stock tips. To further complicate matters, a franchise license does not protect the location owner in the event the business fails to reach the expected profit.

Despite these potential drawbacks, compared to the expense and risk of developing a business alone, opening a franchise can be quite attractive.

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