Are franchises a good investment?
There are a number of business models to consider when investing a new business, including franchising, sole proprietorship, and corporations. Many entrepreneurs choose to franchise, but one question you may be considering is, “are franchises a good investment?” When determining whether a franchise (or any business) is a good investment, there are a number of factors to consider, such as profitability, business support, and lifestyle.
Profitability of a Franchise Investment
Because a franchise system is based on the experience and expertise of the franchisor, as well as the many successful franchisees within the system, new franchisees are able to hit the ground running quickly. With proven marketing and business systems, a new business owner can effectively reach their desired customer base and more easily sell their product or service. In an area with brand knowledge, people are often ready to buy as soon as a new business opens. Compared to a startup, in which the business owner has to market from the ground up and see which marketing tactics will be successful, a franchisee working as part of a larger system has the potential to serve customers and sell their products and services more quickly. Additionally, research suggests that franchises have around a 90% startup success rate.
Investing in a Franchise Comes with Instant Business Support
A franchise system allows entrepreneurs to get involved in a business concept they believe in—without reinventing the wheel. Because the franchisor has already tried and tested their business model, new franchisees are able to open their doors with the support of the franchisor. That support may differ from brand to brand, but new franchisees can rest assured that while they are in business for themselves, they are not in business by themselves. LearningRx franchisees benefit from a full operations manual, weekly check-in calls within the first 3-6 months, multiple onsite visits at their location, and a dedicated support team who are available to answer questions and offer experience-backed suggestions on marketing, networking, consultations, operations, and more.
Franchising is an Investment Designed to fit your Lifestyle
When it comes to work-life balance, not all businesses are created equal, but franchising can offer entrepreneurs the opportunity to own a business that fits their desired lifestyle. From absentee ownership to full-time business management, there are a number of franchise structures to consider. Each business structure will impact profitability, work hours per week, and staffing. LearningRx franchise owners who work full-time in their centers typically work within 15 miles of their home, offering a minimal commute. They are able to attend their kids’ soccer games, spend time with family around the holidays, and have weekends off. As you consider your investment, be sure to consider not just the financial investment, but the time you will invest, as well. Does this franchise meet your lifestyle needs?