5 Reasons to Invest in a Franchise

If you’re looking to diversify your investment portfolio, you’re not alone. Investors are turning to many unique opportunities, and franchises are among them. Becoming a franchisee is no …

If you’re looking to diversify your investment portfolio, you’re not alone. Investors are turning to many unique opportunities, and franchises are among them. Becoming a franchisee is no small decision, but with the right tools under your belt, the payout can be huge. If you’re itching to invest in a business, why not go all the way? When you invest in a franchise, you don’t have to come up with the next big idea; instead, you’ll buy into a company that’s already built a solid reputation.

The Value of a Franchise Opportunity

“A franchise enables you, the investor or franchisee, to operate a business. You pay a franchise fee and you get a format or system developed by the company (franchisor), the right to use the franchisor’s name for a specific number of years and assistance,” the Federal Trade Commission (FTC) tells interested investors.

While there are certainly a number of risks associated with any business model, the reality is that owning a franchise comes with far too many benefits and advantages to ignore. Just consider the following:

1. Recognizable Brand Name

One of the more challenging aspects of building a business is launching an unknown brand into a crowded marketplace. You have to prove that your brand is reputable and must do so while competing with other established business that have strong names to fall back on. Well, with a franchising investment, you don’t have to deal with this issue. You’re joining a strong brand that’s already established and trusted.

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2. Proven Business Model

On a related note, franchises have established business models that have proven to be successful. This lack of experimentation on your part means you simply have to trust the business model and properly execute the plan that’s been laid out by the franchisor. This may sound like it disallows creativity, but it actually provides just the right amount of structure to grow. In some cases, franchisors will actually let you choose which aspects of the business model you want to follow and which you want to tweak.

3. Corporate Support

When things get tough, most business owners are forced to pay for consulting or find help from outside sources. As a franchise owner, you don’t have to run very far. Franchisors obviously have a vested interest in their franchisees, so they’re going to lend a hand when things get tough. This support allows you to be confident in your approach, which makes it easier to take chances and try new things.

4. Rewarded for Output

The sad reality is that the business world is full of inequalities. Salaries are rarely based on output or hard work. Instead, they’re largely tied to knowing the right people and climbing the ladder as quickly as possible. In franchising, this isn’t true. You get rewarded for whatever you put into your business. The more output, the better the return on your investment.

5. Ability to be Your Own Boss

Ultimately, being a franchise owner is fantastic because it means you get to be your own boss. How many people can say they work for themselves? Honestly, most people spend their entire careers – 30, 40, or 50-plus years – working for someone else and following directions. As a franchise owner, you get to enjoy the freedom of being in charge. That’s worth more than your earnings.

Become a Franchise Owner

Franchising isn’t for everyone, but don’t write it off until you’ve done some research. The benefits mentioned in this article are just the beginning. There are dozens of other reasons why being a franchise owner is rewarding and potentially lucrative. Research the pros and cons, find specific opportunities, and enjoy the freedom of being a franchise owner in 2016!


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