Franchise Opportunities: What it’s Going to Be?
There are multiple benefits associated with investing in a franchise. Deciding to take advantage of franchise opportunities is easy. The hard part is figuring out what type of franchise it’s going to be.
Not All Franchise Opportunities are the Same
One of the biggest surprises people discover while researching various franchise opportunities is the wide variety of options. Not only are there a plethora of different franchise opportunities available that span a wide assortment of industries, but there are also different types of ownership. Each form of franchise ownership has unique franchise benefits.
Single Unit Franchise Opportunities
Many U.S. franchises are single unit franchises. This type of franchise opportunity allows you, the franchisee, to open and operate a single location. Single unit franchises have the distinction of being the oldest form of franchising. A good example of a historically famous single unit franchise is the one Benjamin Franklin created with his multiple printing shops.
Single unit franchise opportunities are generally a good idea for individuals who have never owned a business. If a location performs well, many franchises will offer the franchisee the option of setting up another location, though both are usually run as a single unit.
Multi-Unit Franchise Opportunities
Multi-unit franchise opportunities were once virtually unheard of but have started to become increasingly popular with both franchises and franchisees. When you take advantage of multi-unit franchise opportunity, you get to open multiple franchise units at the same time. The advantage is that not only do you stand to get an even faster return-on-you-investment, but you usually get a significantly reduced rate on the franchise fees.
The downside of multi-unit franchise opportunities is that since you’re starting several locations at once, you can’t take as active a hands-on role as you would if you’re dealing with a single unit franchise.
Master Franchise Opportunities
Master franchise opportunities don’t come along every day, so if you’re lucky enough to find one, you should seriously consider it. As a master franchisee, you are essentially placed in charge of a predetermined region. While other individuals purchase single or multiple units within your region, you oversee the logistics of it. As the master franchiser, you collect a percentage of the franchise fees for the franchises you oversee.
Master franchise opportunities aren’t for everyone. The buy-in cost is a great deal higher than what you’d invest in a single or multi-unit franchise opportunity, but the potential profit is also much higher.
As a master franchiser, you’ll be responsible for recruiting franchisees in your region, making sure they’re properly trained, helping them set up their location, and routinely evaluation each location.
A franchise opportunity that’s quite similar to master franchiser is area developer. Area developer strikes a balance between acting as master franchiser and starting multi-units. As an area developer, you’ll have a sizeable region and be required to open many franchise locations nearly simultaneously. Franchisers like using this method to quickly dominate the market. The upside of becoming an area developer is that you profit from many different locations. The downside is that it requires a large initial investment.
Existing Franchise Opportunities
When most people invest in a franchise, they ultimately end up setting up a whole new location, but in some cases, you can find an existing franchise location that’s seeking a new owner. If the location has a successful track record this can be an incredible opportunity since much of the local advertising is complete and a customer base is established.
On the other hand, if the reason the location is available is because if failed to thrive it’s important that you explore the reason why and have a plan to turn things around once you take over the reins.
Another opportunity that you could choose to pursue is purchasing an existing franchise. With this arrangement, someone else has already purchased the franchise initially from the company. She has started the business and established it successfully in the region. Buying an existing franchise can provide you with a great deal of safety. With this model, you already know exactly what to expect from the business. There are fewer unknowns for you to worry about.