So, you are dreaming of running your own business and being your own boss, but you’re worried about taking a big financial risk? One of the many benefits of franchising is the wide variety of business options available to suit even the most frugal of budgets.
Many successful franchisees start out small. Some are savvy entrepreneurs looking for a lucrative side hustle, others are stay-at-home parents or retirees looking for a flexible and fulfilling way to earn extra income. Wherever you are coming from and whatever your ambitions are, if it’s your first foray into franchising, a small, low investment franchise is a great way to test the waters.
Is now a good time to become a franchisee?
There is no doubt that many businesses—large and small—have suffered during the global pandemic. The experience has taught us all that nothing is ever certain and the best we can try to do is be prepared.
Franchise systems offer a greater degree of support than small business owners trying to do it on their own. Franchisors offer a tried-and-tested business model with built-in operations, marketing and sales support. They are also committed to keeping their franchisees afloat—after all, it’s in their best interest that your business succeeds.
Franchisors are able to support and assist their franchisees by:
- providing advice around navigating new regulations and restrictions
- assisting with accessing government support programs
- assisting with landlord negotiations
- providing royalty reduction and deferral programs
- carrying out activities to monitor and support the well-being of franchisees.
What do I need to get started in franchising?
It’s clear to see that franchising offers more security and support than going it alone and trying to keep your own small business afloat during turbulent times.
And once you have made the decision that franchising is for you, it’s easy to dive right in!
Start-up fee and investment – you will need to have some savings to start your venture. For small business opportunities you should be able to provide at least 10 percent of the franchise cost up-front. Some franchises offer low investment fees to get you up and running fast but require royalty fees and a portion of the profits you make. This latter option can be suitable for people just getting started in franchising who have little capital but big ambitions and are willing to share the success of their efforts with the franchisor. Always do your research before signing a contract to make sure you understand the financial expectations.
A passion for the product or service – while it’s true you don’t always need to be an expert in the subject of your franchise (for example, you don’t need to be a chef to own a restaurant or an athlete to run a gym) it is important to be driven by more than making money. To be successful, you will need to show passion and commitment to your business and the industry it represents. Make sure the franchise opportunity you choose suits your interests, your personality and your lifestyle, not just your bank balance.
Do your homework – once you have selected the type of franchise you want to be a part of, do your research to learn all you can about the different franchises available within that category. Attend franchising expos, attend information sessions, talk to franchisees about their experiences, and devour as much information as you can—reading the Expert Advice articles in Business Franchise magazine is also a great way to start!
Franchise opportunities for all budgets
With varying investment rates and start-up costs, there are a wide range of franchises to suit most budgets. Some require more capital due to real estate, shop fit-out or equipment expenses, while other franchises can get you up and running at a fraction of the cost—there is not one-size-fits-all financing structure to franchising. But what you can expect to find across all of these franchises is a network of built-in structures, systems and support that will make your pathway towards business ownership a smooth one, with many franchises even offering financial plans and discounted fees to support budding entrepreneurs.
FEATURED IN THIS ISSUE OF FRANCHISING USA:
Dough and Arrows is a family-owned and -operated company offering a wide range of gourmet treats and edible cookie dough—a newer entry into the dessert market that is steadily rising in popularity. Their products are produced in small batches and have an exclusive feel and positioning to entice consumers. Established in Hanover, PA in 2018, D&A is a fast-growing brand with prime locations still available. Learn more: https://www.doughandarrows.com/index.php/franchisee
Fast Signs has continued to perfect its business model over decades to become a leader in the sign and graphics industry. As businesses look for new ways to compete for attention in a visually-oriented world, FASTSIGNS franchisees are in the perfect position to achieve long-term success crafting creative, cutting-edge solutions for businesses on a local and global scale. FASTSIGNS has been recognized by the Franchise Research Institute as a World-Class Franchise, based on franchisee surveys. Learn more: https://www.fsfastsigns.com/own-a-fastsigns/
AAMCO is the leader in complex car repair. With the industry shifting toward technologically enhanced hybrid and electric vehicles, AAMCO is leveraging technology, ongoing training and education to invest in the future of automotive repair. AAMCO is the only brand capable of winning a sizable share of the complex car repair business that the cars of today and tomorrow will generate. Existing franchise owners are reinvesting in AAMCO in record numbers—opening their second, third or fourth centers. Learn more: https://aamcofranchises.com/
GI Tax is revolutionizing the tax preparation industry. While taxes are at the heart of the brand, they offer year-round financial services, creating multiple revenue streams and higher return on investment for their franchisees. GI Tax seeks ambitious franchisees who value American ideals and serving their community. A typical G.I. Tax franchise costs significantly less than most franchises due to low initial franchise fee and the ability to open a location virtually anywhere. Learn more: https://www.gitaxfranchise.com/
More franchises to explore…
Assisted Living Locators www.assistedlivinglocatorsfranchise.com
Body 20 https://body-20.com/franchise/
Caring Transitions www.caringtransitionsfranchise.com
Infinity Martial Arts https://infinitymartialarts.com.au
Mosquito Mike https://mosquitomikefranchise.com
Win Home Inspection https://winfranchising.com
Window World www.windowworldfranchise.com