Franchise Investment Tips

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What do I need to know about choosing a location for my business investment opportunities?

Choosing a Location for Your Business Investment Opportunities

Choosing the ideal location for your business investment opportunities can be critical to your success. If you are making a franchise investment, many franchisors will help you scout out proper locations. They might also guide you through the process of negotiating a lease and any build-out that needs to be done. If you don't have help, do some research regarding appropriate demographics, visibility of site, traffic and parking and find out what's the best mix for your type of business. Look for details about the most desired tenant mix for a shopping mall as well. Price is important as well, of course. Lease negotiations will help you determine the best balance of great location and reasonable lease.

   
How can I utilize franchise investments to grow my business?

Franchise Investments Motivate Franchisees

Generally, you gain three things by turning your business into a franchise: time, money, and good people. Franchise Investments made by the franchisee let you expand without investing your own capital. The franchisee will also spend their time seeking out locations, managing contractors, and negotiating leases. Once everything is set, the franchise investments made by the franchisee provide great motivation for them to create a successful new location. You share your knowledge of running a good business and they invest the capital and sweat equity, while you both share in the profits.

   
What kind of franchise investment will I need to make?

Franchise Investment: Capital and Sweat Equity

There are two things you'll put into your franchise investment: capital and sweat equity. The capital investment is the money you pay for your franchise agreement, plus ongoing royalty payments (you'll also need to invest in equipment and have enough capital to pay the bills until you return a profit). The other part of your franchise investment is the time and energy you put into running your business. A franchise investment is not a passive investment. You don't generally write a check and sit back and collect money. Your management of the business will have a huge impact on your profits.

   
How can I find a good low investment franchise opportunity?

Kiosks: a Low Investment Franchise Opportunity

Kiosks and carts are an interesting low-cost investment franchise opportunity. You don't have the huge up-front cost of building out a store. Licensing agreements are typically shorter than retail store franchises so they're more flexible.

Kiosks can be an ideal low investment franchise opportunity for seasonal products. Malls, airports, and sporting events are popular locations for kiosk businesses. You can buy, lease, or rent carts, depending on whether the products are seasonal or not. Often malls and sporting event centers will rent the carts directly and might also take a percentage of sales. Be sure to research this trend when you go are making a franchise investment.

   
How can I convince potential franchisees they should look to us for investment opportunities?

Communicating Investment Opportunities to Potential Franchisees

Put yourself in their shoes and figure out what you would want to know before investing your money in their business! You'd want to know that of all the business investment opportunities you have, this one offers a fair chance of providing good returns. If you're offering a low investment franchise opportunity you're likely to attract less experienced franchisees. Make sure you train them well and guide them, so you both reap the benefits of a well run business. Investment opportunities that require a fair amount of sweat equity on their part can pay off handsomely down the road.

   
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