Investing in a big-name franchise offers no more guarantees than buying into a smaller brand. That’s why the questions a franchisee should ask before investing money remain the same, says Alex Littner, MD of Boost Capital.
The appeal of franchising for those with ambitions of business ownership are clear: Buying into a tried and tested business model, built in marketing and advertising systems, support from head office, etc.
Figuring out which franchise system to invest in is not easy. A Canadian franchise opens every 2 hours, 365 days a year. There are over 78,000 franchise units across Canada.
There are many things to consider. Should you go for a well-known name – which probably comes with a hefty price tag – or a less established outfit that will likely cost less, but doesn’t have the brand recognition?
Instant brand recognition does not come cheap. A MacDonald’s franchise requires a minimum investment of $750,000. Franchising fees and royalties for bigger franchise chains can also be higher than the average.
So, despite the security that might come from investing in an established brand, success is far from guaranteed. Franchisees with insufficient capital to survive before the business becomes profitable can end up struggling, while having the wrong skills or experience can also cause a big-name franchise unit to fail. And with size comes a certain degree of exposure – a scandal elsewhere in the company can taint perfectly functional franchise outlets operating under the same brand name. Think Subway’s scandal with their spokesperson, Jared Fogle.
Not all franchise opportunities are well-known or require hundreds of thousands of dollars of investment. There are many deals available that require a relatively low initial investment and can offer a very strong return for a franchisee.
For example, Skedaddle Humane Wildlife Control offers a minimal initial franchise fee of 25,000. Many new franchise owners recoup the cost of the initial franchise fee, and first year royalty fee within weeks of opening.
Every franchise system must start somewhere – McDonald’s wasn’t always the world’s largest fast food chain, after all. It began its franchising journey in 1952, with its second franchisee only coming on board more than a year later.
Opportunities in the low-cost franchise category, which usually top out at around $100,000, can range as low as $10,000 or $20,000. Starting out in the franchise business through a kiosk, a home-based brand, or a mobile concept – which eliminate the cost of monthly lease payments – is a great way to begin if funding is a problem
The Advantages of Going Smaller
When you buy a new franchise, it’s likely that your equipment and facilities will also be new or at least newer than they would be if you bought an existing franchise. Outdated equipment isn’t always a deal-breaker, but in some sectors (e.g. home service franchising) it’s important to make sure the business is outfitted with reliable machines and the latest designs and safety equipment.
With the Skedaddle Humane Wildlife Control franchise you can get started with relatively few employees, minimal supplies and equipment and no expensive brick and mortar location. Your attention grabbing Skedaddle Humane Wildlife Control wrapped vehicle is your office!
Getting in early on a franchise opportunity can be a great advantage, giving the franchisee a strong relationship with the parent company, the chance to enter new territories when the business expands and even the possibility of playing a part in how the group is shaped.
There is no question, franchising can be a great way to start a business. The surge in franchising over recent years is typical of tougher economic times when people crave a proven business model that is less vulnerable than a regular startup.
If you want to learn more about joining Skedaddle Humane Wildlife Control, we invite you to start the process by calling 877-662-2877 or visiting www.skedaddlefranchise.com