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  • Which Franchise is the Best to Own?

    Which Franchise is the Best to Own?

    If you’re an entrepreneur considering getting into your own business, you might not know what exactly you want to get into selling. The market in your area may be crowded, and you’re looking for a sure-thing investment that will return your money consistently. In this case, you should consider buying a franchise.

    Franchises give you the benefit of an existing brand you can market, a supply chain you can take advantage of and a legal overhead you can rely on for staying within local and state laws. Of course, when you get into a franchise, you’ve got some up-front costs to consider. Let’s look at some popular franchises that are considered some of the best to own right now.

    Considerations

    Before you get into a franchise, know that you’re signing up for some up-front expenses. These include franchise fees, which you pay to become a franchisee, up-front inventory stocking costs, royalties and real estate fees. As such, you could be looking at a rather heft up-front investment out of your own pocket. While you may be able to get a business loan for the expenses, this is a lot of money to owe.

    As such, make sure you do your research on any franchise you’re considering buying. Make sure they have good brand recognition, a strong financial standing and a good presence to help back up your investment. Otherwise you might be throwing a lot of money away.

    Seven-Eleven

    This highly popular convenience store is one of the best franchises to own at the moment, thanks in part to its recognizable name and potentially low franchise fee. The franchise fee could be as low as $10,000, but could be as a bit higher for certain regions.

    The strengths of Seven-Eleven include its name-recognition and its position as a convenience store with gas pumps. Everyone needs to stop in and get gas from time to time, so you’re guaranteed to make snack and beverage sales when people drop by. This is a surefire way to get some revenue coming in.

    McDonald’s

    Everyone knows the name McDonald’s, and everyone has been into one to grab some food. While McDonald’s might have a very high franchise fee, it’s for good reason. You’d be hard-pressed to find a more recognizable name, or a product that is easier to sell, than McDonald’s burgers. If you can get together the $45,000 franchise fee, you’re likely to have a great investment on your hands.

    Every town in America has a McDonald’s. This gives you a huge edge: everyone already loves the products you’ll be selling. You’ll find it easy to market yourself to people, and you’ll likely find customers just coming to you. It’s every franchisee’s dream.

    Dunkin Donuts

    Okay, they’re just called “Dunkin” now, but they still sell doughnuts, so let’s not mince words. This popular donut shop sells a ton of coffee and a ton of pastries, and is a regional favorite in areas like New England and parts of the Southeast. It’s also got locations all over the world, in 32 countries, and has a very recognizable name.

    As a franchisee, you only need an up-front fee of $40,000 to $90,000 in order to get started. From there, you’re in business selling coffee and donuts to people who have been fans of the long-running brand for years. The company also supports franchisees with help marketing, managing and even selecting and constructing sites! There’s a lot to love about Dunkin, and they make sure to take care of their franchisees. After all, the better the franchise does, the better they do!


  • What You Should do Before You Buy a Franchise

    What You Should do Before You Buy a Franchise

    So you’re considering buying a franchise? That can be a sound financial investment, as the hard work of building a business is already done for you. After all, everyone loves McDonald’s sandwiches already, and they’ll be happy to buy them from your store! However, there are some things you should take into account before you buy a franchise.

    What to do Before Buying a Franchise

    Prerequisites

    If you’re the kind of person who loves their independence and can’t stand being told what to do, you might not want to be a franchisee. Franchisees can make a lot of money, but they need to follow some pretty strict rules from corporate.

    From hours to store policies to inventory, there’s simply a lot you won’t be in control of. If you don’t mind following orders and sticking to the program, you can excel in a franchise. However, if you want a lot of creative control, consider starting your own business, instead.

    Research

    Firstly, do your research. How do you think the would-be entrepreneurs who bought Quiznos franchises felt when they saw their parent company imploding? You don’t want to be in that scenario. Make sure the franchise you’re investing in is an already-successful business. If it isn’t, what business do you have trying to own your own a part of that?

    Bookkeeping

    Make sure you’ve got the kind of cash this investment needs. There’s a lot to consider: there’s the franchise fee, the cost of maintaining equipment, and the ad dollars that the franchisee has to pony up. Then there’s the issue of your profitability: even well-known brands can take time to catch on in a given location.

    Let’s say you’re franchising out a McDonald’s. Awesome! But you’re in a new location, and people might not think to go to your store as part of their daily routine. It could take up to six months for your restaurant to really catch on, and during that time, you might not even be posting a profit. Make sure you’ve got the kind of capital to cover such an expense.

    Consultants

    Watch out for franchise consultants. Ask them about their pay, as many of them get as much as half of the franchise fee. Consultants are usually salespeople working on commission, so it’s in their best interest to sell you a franchise as quickly as possible. Don’t let these folks take you for a ride: go at your own pace with such a big move.