by Phillip Durand
Are you planning on starting a business but aren’t sure about what to invest in? Starting a business comes with a multitude of risks that almost every new entrepreneur is afraid of. One of more daunting aspects is breaking into the market and attracting a good customer base for your brand. This is where owning a franchise proves to be less risky and safe.
#LINKS#
#IMG#
What is a Franchise?
Before we get to what opportunities are available to you, understanding what a franchise is crucial. Essentially, a franchise is a business that uses the name, logo, and products of an already existing business, but the management and operations of the business are under the person who purchases the license to run the franchise.
The franchiser is the owner of the existing business who sells the rights of running their business to a third-party owner, the franchisee. And so, the franchisee benefits from the renowned name of the existing business, not having to worry the business failing.
Top Three Franchise Opportunities to Invest in
A multitude of franchise opportunities exist for different types of owners. Depending on your budget, you can choose from a series of business to franchise. Here’s a list of five profitable franchises that you could potentially invest in.-
Dunkin’
The American-based coffee shop has come a long way since its inception. Now, you’ll find its franchises spread across the world. The business has a well-established name which is why it’s easier to step into the market. If you wish to start a food and beverage business and have the funds for it, Dunkin’ is the ideal option for you to go for.
The franchising fee for Dunkin’ is high, about $40,000 to $90,000. Along with this, you’ll need to put in funds as an initial investment as well. All of this can easily cost up to $2,000,000, depending on the details.
Jazzercise
Next, we have Jazzercise. If you don’t have the funds to start up a large-scale business, Jazzercise is a great option that’s easy on the pockets. It’s a low-investment business that’s easy to step in to as it offers a range of price points.
The business model is based on the current trend focused on healthy living. It’s a profitable exercise business with a franchise fee as low as $1,250. Along with this, the initial investment for the business is about $2,500 to $38,000.
McDonald’s
Another renowned food franchise that’ll surely earn you a great buck is McDonald’s. There’s no way that this business can ever go wrong. With such a large customer base, you’ll find it to be a profitable franchise to buy.
The franchise is an expensive one to buy as the franchise fee runs for about $45,000. Along with this, you’ll find that the initial investment for this franchise can go about to about $2,200,000.
How to Evaluate a Franchise Opportunity?
When planning on buying a franchise, you must evaluate a few things beforehand. Let’s have a look at what these are:
- Franchise fees and Costs
Researching about the franchise you’re buying is crucial so that you know the costs associated with it. While the franchise fee might seem affordable to you, you’ll need to bear more cost for the initial set up. This can run high, so you’ll need to make sure that you have it all calculated.
- Profitability and Growth Potential
Let’s not forget one of the main goals of buying the franchise – to earn profit. Take a thorough understanding of the financial statements of the franchise you’re buying. Along with this, you should know the other franchise success rates and the number of new franchises opening up.
Bottom Line
All in all, make sure that you’re making an informed decision when it comes to buying a franchise. While many great franchise opportunities are available and can lead to high profitability, you’ll need to pick one that works best for you.
