Name: Iftikhar Hussain Location: Edinburgh...
When you find yourself ready to delve into the world of franchising, aka become an investor, choosing the right franchise can be tough. Adverts, like the many found in Franchise Expo, provide you with a lot of information such as the initial franchise fee, which varies massively.
Low-cost franchises feature in a wide-range of sectors, proving that successful franchising does not have to cost the earth. But as the saying goes, ‘You get out what you put in’. The concern, therefore, to a lot of investors looking at low cost franchises is whether seizing a bargain will limit their return on investment in the future. The return on investment is less about the money being invested in at the beginning, but is more heavily linked to the sustained work put into running a business. Therefore, a franchise is never be passive investment as the owner will be investing their time and aptitude in the business, in addition to their personal funds.
Unlike McDonald’s or subway, some low-cost franchise opportunities may not necessarily come with the structure and immediate scalability of a large, high-investment business. Therefore, the additional manual effort must be put in by the franchise owner. Working hard in their business is not a chore however, but a prerequisite of investing in any business, as is the case for most truly committed, and subsequently successful franchise owners successful
Virtually every franchise proposing an opportunity at the lower end of the investment level scale can claim comparable earnings potential for investors who are willing to put in the additional energy to make it a success. The only obstacle standing in the way between a low-cost franchise owner and an embarrassment of riches is the limit of their own capability.