Determine the cost of the franchise that best suits your needs

The cost of the franchise can and will determine the length of your time in business.

There are several key factors when looking at the initial cost of franchising any business. Your investment determination will be based on your specific goals with that particular business model. Know the amount of marketing costs, the initial configuration of the business (materials, equipment, inventory, personnel, insurance, etc.), your competition, whether local or virtual, and most importantly, the ROI (return on investment). ).

An initial franchise cost can earn a new business owner a quick return on their investment or a potential positive return on investment that may be delayed for years to come.

Unfortunately, the current economic situation that not only this country, but also every other country in the world is going through, also has a determining factor in the duration and profit margin of any young franchise. But there are some industries where the initial cost of franchising is still considered profitable with an even better ROI than traditional franchise models.

Let’s go over a few.

A franchise cost comparison of several popular industry models

The following is a brief breakdown of a few business models ranging from the highest deductible cost to the lowest. The first is:

• fast food franchises – While most people dive into fast food shopping more often than the typical restaurant, the idea of ​​investing in a McDonald’s, Burger King, and even Dunkin Donuts franchise might seem like a lucrative franchise to invest in . But consider this, the typical fast food chain restaurant will cost on average between $80,000 and $100,000 initially. While still in the budget of a deductible cost For most small business owners, the chances of finding available capital and investors willing to invest their funds in a down economy are extremely difficult.
• Typical restaurant – As long as it stays average deductible cost $80,000 to $100,000 to start, increasing the difficulty of maintaining a profitable business. Long work hours, fast paced environment, tons of staff members, not to mention the high cost of operations to keep a restaurant in order with health code regulations, the deductible cost continue to rise. Not to mention that seeing a positive ROI averages 7-10 years, while research has shown that the average business only stays open for 3-5 years. Something to truly consider!
• Department store – Although the average person always takes the time to visit a department store considering having a difficult personal financial situation, the cost of maintaining department store inventory can be a bit overwhelming. Not to mention, the initial cost of the franchise can hit the $1 million mark. Oh! Staff costs, utility costs, and business expenses can reach indeterminate heights that even the largest department stores have been unable to sustain. Circuit City stores are a great example. As a child, I remember visiting numerous Circuit City stores only to learn recently of their bankruptcy filing. Another one that sees the difficulties of this economy is Ashley Furniture Stores. All but a few remain, and before long there will be none left. Really sad considering I bought ALL my furniture from Ashley’s.
• Virtual Business – As difficult as it may seem for some small business owners, the virtual world is upon us. From browsing the web on your PC or MAC, to surfing online using your smartphone, most new customers are gained through the use of the almighty internet. Considering an extremely low franchise cost (Averaging between $2,000 and $20,000 depending on the type of top-tier business), unlimited reach to attract customers and build a loyal following of your franchise brand is extremely powerful. On average, the most profitable virtual business models have NO inventory, overhead, large franchise costs, rent, insurance, and most of all, the ability to set your business hours however you like. And even in the current economic crisis, the virtual industry has had very little of our financial crisis considering the cost of franchising, while the typical franchise literally struggles daily to keep its doors open. Talk about stress when you as a franchise owner are held responsible for the financial downfall of those below you!

The cost of the franchise is not as good as it seems

As you read above, there are several facts to consider in the cost of a franchise that can be extremely important and very dangerous if not properly analyzed and researched. But is that all it takes to have a franchise?

Obviously not! The most important cost factor to consider is the actual physical time you will spend building that particular franchise.

As an entrepreneur, chances are you already realize the amount of dedication it will take to create a successful business. But knowing and putting that devotion into practice, 16 hours a day, sometimes 7 days a week, can be a bit overwhelming both physically and mentally.

Above all else, this is exactly why I personally, as an entrepreneur, put this as my biggest focus and couldn’t imagine having to stay away from my growing family for such a long period of time. I have placed my investment in the online virtual business model and I suggest you do the same.

For a view and more information on the low-cost franchise business model that has created hundreds of successful business owners around the world, visit the link below.