Consider Investing in a Franchise in 2020
In the current business climate, investing in a franchise could make solid business sense for you. Understanding the different types of franchises out there will help you make an informed decision.
Based on Products
Many of the most popular franchises are those that are driven by products. With this type of business, the manufacturer or dealer provides the products and you sell them, receiving a percentage of the profit. Products may be large or small and you may find that you are given the framework to run the business or you may need to start it from the ground up.
For instance, you may want to opt in on a gas station franchise but will need gas station builders to get you started. On the other hand, you may prefer to buy an existing franchise, such as a car dealership. Deciding on the kinds of products you want to sell and the company you want to work with will help you if you go the product route.
Based on Jobs
This is a much smaller type of franchise and is usually connected to a service company. Think along the lines of as a cleaning company or a lawn service. You may be able to do this as a home-based business.
Based on the Investment
Larger commercial projects are often used as investments. A specialty restaurant or hotel chain would fit in this category. You would usually provide some capital and then organize and hire your own management team for the day-to-day operations.
Based on a Business Format
One of the most popular types of franchise, one based on a full business format makes a great deal of sense. You not only buy into the business and its name, but also into how it is being run. You often receive training as well as a great deal of support so that your corner of the business is run just like every other franchise. This provides continuity and security.
Based on Conversion
The idea here is that independent businesses can be turned into franchise units. This is done by working with a business, such as a plumber, and adopting logos, methodology and advertising. The independent basically is converted into a franchise of the larger entity.
No matter which way you go, franchising can be a profitable business for those involved. By taking the time to really delve into the pros and cons of each option, you can find one that works for you.