Many believe franchises would be at the top of any investment people consider a sure bet. Some think that by buying into an existing company and opening an outlet where none exists, the money will pour in.
Well, it's not always that simple. But, if you can follow the script, you might have some luck!
"The nice thing about franchises is you have an entrepreneur who has a product or a service and they have proven they can be successful selling it," stated Lawrence J. Cohen, President, and chief executive of Cookie Associates.
For someone who has a passion for managing a process, franchising can be lucrative through investing. The different choices of franchises available are endless. Not all have that spark. You have to decide which franchise is best for you and your family.
Many franchisees think of it as just an investment, they don't necessarily realize it's important to be involved with day-to-day operations. It's not the type of job where you are working 40 hours a week.
Something else that can be misleading is the franchise fee. Burger King, for example, has a franchise fee of $50k, but it requires people to have a net worth of $1.5 million and liquid assets of $500,000.
A major tip of advice is to do your research wisely. Make sure you plan ahead and consult with a financial adviser before investing in any franchise.
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Source: Paul Sullivan - NY Times (May 18, 2012)