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Location Factors For Franchises that cost more than £100,000

Market factors

Investing in franchises under 100k and buying a business model and an area or territory is a very popular way to get into business and grow not only a successful but large and well recognised brand. The instant recognition creates a simpler method for attracting new customers or clients or promoting your services, providing a predictable income due to the size of the recognised brand you have purchased.

An example of franchises over 100k might be a large well known fast food brand with a specific location already set up and huge population and varying demographic ensuring the business is a success. These will likely be franchises over 100k although there are smaller franchises under 100k offering smaller business models. The size of the investment level differs, the ongoing hiring of staff, wages and food delivery volumes set these businesses apart. It is the location and the usage and patronage from the local community or territory that almost guarantees the success of these businesses, as the franchise operation manual are so in depth that these businesses rarely fail. People who buy these franchises over 100k will pay a premium for that assured success. Have you considered franchises that cost more than £100,000 in Bristol or franchises that cost more than £100,000 in Edinburgh?

People who invest in franchises over 100k would be looking at fitness or food or specialist building suppliers and service providers as an example. Some franchises are priced reasonably, franchises under 100k but the set up costs, leases and the overall expense of getting the business to the opening or launch day can increase the amount required way beyond the initial franchise fee. The best franchises over 100k often require a specific square footage location like a major shopping centre where a lease would be required and negotiated prior to the business launch. These businesses tend to cost a lot more but turn over a lot more business and generate a higher profit.

Royalty fees

Most franchises do fall below 100k, and equally franchises under 100k and franchises over 100k frequently requires additional leases and minimum staffing levels. The opening and closing hours need to be considered along with the franchise fee or royalty fee that has to be paid back by the franchisee to the master franchisor as part of the franchise agreement. If you invest in franchises then this royalty fee is usually based on a percentage of the turnover.

But remember this percentage is paid on the gross turnover often monthly or quarterly but is paid from the net of what is left over after the operating costs. This can at times look expensive after all the costs, stock and staff wages are taken care of. The advantage of buying franchises over 100k is the depth of support often provided and the backing of a national brand with a well-known product and logo. There is often a national advertising budget provided by the franchisor as part of the overall package. Other franchises though may have a requirement for you to pay a monthly fee towards that package which could add additional costs.

If you are looking to invest in franchises, whether you are looking at franchises under 100k or the best franchises over 100k, start your search here with Approved Franchises. Fill in your details at the top of the page and make a wise investment choice. Use the free service and expert advice from Approved Franchises and compare pre-approved UK based franchise companies right now.

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