Think First the Total Investment Required to Own a Franchise
The total investment required to own a franchise is depending on a company’s products and services they offer. Even though there are small business that only requires small capital, we need to think deeply if it’s worth franchising. A small money is still money. If you risk $5,000, that’s still money. If you want to start your own business, you need to learn everything from scratch. But if you just own a franchise, you just give your money and run the business as it is.
Even though today there are cheapest franchise to open food business, you will also need to analyze whether the service and the product itself are well-known and loved by consumers. There are many franchising opportunities today especially on food business. Think the total investment required to own a franchise like McDonald, Starbucks, Jollibee and compare the total investment required for a mini food cart business.
Some Important Information You’ll Need to Know when Franchising a Business
What is the difference between a total investment and a franchise fee?
The total investment in franchising is the total amount of money that expecting to spend by the franchisee to operate the business including, franchise fee, staffing, equipments if not included, location, rent, etc. While a franchise fee according to Wikipedia simply means;
“A franchise fee is a fee that a person pays to operate a franchise branch of a larger company and enjoy the profits therefrom.”.
You need to know both the total investment and the franchise fee. Sometimes, there are companies who are willing to operate the business for you, all you need to do is to give them the required fees and they will do the rest.
But be careful because the total investment you need to spend is not the same as the franchise fees alone. There are also other charges or other fees you need to consider. Ask yourself if the price for a franchising fee is right.
Image by Jason Hargrove via Flickr CC 2.0 – StarbucksChoosing the Right Business Franchise
It is not necessary to own a business franchise because the fee is at a low cost only. Even though you will spend little amount of money, you also need to know whether the business franchise is align to your passion and interest.
Example, if your passion and interest is automotive and you would like to own a business franchise about car wash and car detailing but your interest is on pet care, you will not succeed on that way. Because, you will still need to supervise and spend time for your business franchise.
We all know that successful entrepreneurs love what they do. And usually, they do what they really love. They never lose their enthusiasm and passion on their business endeavors because they enjoy doing it. How can you enjoy a business franchise if you don’t love the products and services it offers? Your chances to become a successful entrepreneur is high if you choose wisely the business franchise. If the products and services of a franchise company is not align to your interest, then you should start your own business and make money doing what you love.