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Finding your low-cost franchise...

If you have limited funds to invest in a franchise or business opportunity, you can always invest in a “low-cost franchise” opportunity.  One myth about low-cost franchises is you are not going get “your money’s worth” so you won’t get the best franchise available than if you had a larger sum to invest with. This is not true, what matters are your research objectives and how you investigate a low-cost franchise.

View the following list of criteria you should keep in mind when assessing a low cost franchise or business opportunity…

  • Finding a FranchiseWhat training and support does the franchise offer? A key element in the franchise package is the opportunity to avail of training and on-going support. It is vital your franchisor offers both to ensure the success of your franchise business.
  • Has the franchisor been in business for long? How many franchisees are currently operating a franchise? First thing you should ask is how long the business has been running and if it is a relatively new franchised business, you should ask for proven results for the business system, so you know you are investing in a “new” business but with a model that has been tried and tested prior to franchising.
  • Second thing you should ask is to speak to all existing franchisees. You don’t need to contact all of them, but it would be in your best interests to randomly select three to four franchisees and ask them their opinion on the franchise business… Although a franchise can advertise their business as “low cost,” they can incur hefty royalty fees to make up the price in the long term.
  • Make sure you know all prices involved from the start of your research - initial fee, royalty fee, liquid capital fee, etc. This will ensure you will not end up paying more than you thought at the beginning.
  • Compare and contrast a low cost franchise with a high cost franchise competitor and assess why one franchise is cheaper to invest in than the other.
  • Consider the package that is been offered, assess vital topics such as training, support, help with marketing and location if you are buying into a premises… always research a franchise with due diligence and understanding of the key elements involved within the franchise operation.

These steps will help ensure you are investing in a low-cost franchise that will legitimately get you the results and rewards you want!

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