Aspiring entrepreneurs seeking to break into the world of business without breaking their bank account need to take a long hard look at franchising. Cheap franchises have become increasingly popular, providing business owners a route to break into a competitive industry while minimizing initial capital outlays.
This article, put together with members from the International Franchise Professionals Group (IFPG), provides answers to some frequently asked questions about cheap franchise business, and takes a deeper look at the franchising process.
What is a Cheap Franchise?
A cheap franchise is an affordable option in which owners are provided the rights to use the franchisor’s brand name, trademarks, operational and marketing methods, and other resources for a smaller initial financial investment.
Owners who opt for a cheap franchise are able to enter established markets or launch their own business on a budget. As cheap franchise businesses require fewer investments than full-service franchises, they are usually quicker to launch with less regular maintenance and product or service standards.
What are the benefits of a cheap franchise?
The biggest benefit or advantage of investing in a cheap franchise is the low initial financial investment. Cheap franchise options require minimal capital to start and are typically geared to entrepreneurs who are working on a limited budget.
The lower financial risk also comes with lower overhead business costs, making cheap franchises the ideal route for people who are just starting out. Because these franchise businesses are low cost, entrepreneurs are usually able to break even much quicker than with more expensive businesses.
The less-costly set-up and operation also lends itself to quicker returns, profits, and rewards for owners who invest their time and develop the franchise business well.
What kind of support and guidance do cheap franchise owners need?
At the International Franchise Professional Group (IFPG), our goal is to provide aspiring entrepreneurs guidance as to how to best identify and invest in franchise businesses. Our experienced team of franchise consultants has more than 1300 franchisors, franchise consultants, and members from across the globe, all of which are dedicated to helping people through the purchasing process.
As a part of IFPG, our team is available to answer all your questions and concerns regarding the franchising process. We also provide information regarding:
* Business formats and types of franchises
* Franchise fees and costs involved
* Tax and legal framework
* Franchise development and marketing strategies
What kind of research should prospective franchise owners conduct?
Conducting quality research is important for any person considering franchising. Whether you are investing in a cheap franchise or full-service franchise, due researching the franchising process is always best.
When researching the franchising process, considering the following:
* Read about similar businesses and brand competitors, so that you can come up with a competitive edge.
* Analyze the startup costs, fees, and other expenses that might be incurred in the process of launching the business.
* Research the target market or customer base that you will be working with.
* Ask current franchise owners for tips and advice about the process.
The main takeaway
Franchising is a great way for aspiring entrepreneurs to gain a foothold in the business world and start building a successful venture. With the help of a professional franchise consulting network like IFPG, investing in a cheap franchise can become a simple, yet profitable option with minimal initial investment.