Set up costs
When considering investing in a franchise business and looking specifically at high cost ones, it is not always the entry level or minimum investment that makes them expensive, but the set up costs.
The fee when looking let’s say at those under 100k offer an enormous amount of training and guidance and a manual to work from and refer to, often a team of experts to get the business up and running and ongoing support.
Often there is a head office with staff trained to answer any questions. The brand owner may have a list of other franchisees that are accessible for testimonials and advice.
Whether looking at those under 100k or the best ones over 100k, high cost ones need a certain amount of liquid capital not to mention usually a loan for fitting out premises in a prime location with all the well-known logos and set up as per all the others around the country.
What makes these worldwide, recognisable names expensive ones is the fact that they very rarely fail. These high visibility high cost ones usually service a specific demographic and are located accordingly.
The brand owner wants every outlet to be a success as much as the new recruit does therefore the help and support is invaluable. The entry level or minimum investment level may indeed be franchises under 100k, but we have to consider all the other costs from initial purchase to grand opening.
Often these big boys, the best ones over 100k will have finance options available. Of course banks are far more willing to loan to expensive ones or indeed those under 100k as there is a far higher success rate for a franchise to still be in business after five years than a stand-alone independent business.
Carry out your due-diligence
Do your research and see what is missing from your local area. Are there the perfect premises available in the local shopping centre for one of the high cost franchises? Maybe a healthy take away sandwich shop or an eat-in noodle bar.
How about an easy access main road location for a drive through food outlet or a tyre or auto services outlet? You may be looking for pest control or health or fitness type under 100k or the best ones over 100k for drive through burgers or pizza delivery. Or something completely different like a playground or children’s nursery business!
To make a wise investment decision, choose one that fits within your interests or wish list if not your background experience. The brand owner is often happy to take on a recruit from outside of the industry as long as that person is passionate and committed to the business and has the £100,000 or so available to invest.
Between the team of experts and the comprehensive training manual, everything will be covered from back of house admin to training the staff. Take a minute now to enter your details at the top of the page and receive no obligation expert advice from Approved Franchises.
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