Thursday, March 22, 2007
Low Cost Franchises
People who are looking for a business venture will probably end up with a franchise business rather than start a new business from scratch. But in choosing a franchise, it is wise not to just choose the cheapest one available. There is a reason why a franchise in Chowking or Jollibee will set you back a couple million pesos. They are already established names with an established customer base and it is almost a sure bet that you can earn money with your Jollibee franchise.. if you can afford a Jollibee franchise in the first place without having to mortgage your home.
There are however more affordable alternatives out there which are pretty good companies to invest in. It takes time and research to find the right one for you. But don't just jump on the cheapest available franchise out there. There is more to just the price of getting the franchise. More important is how the franchiser does business with their franchisee. Is the franchise company out to sell you the franchise to get your money and royalties but leave you in the cold with poor customer support, insufficient stocks, poor management or products that suddenly disappear. There are horror stories out there of people wasting their hard earned money or worse, money that they have loaned from the bank or some financing company which they will incur a debt for a worthless franchise.
A good franchise company will offer you staff and management training, will help you find a good location to setup your business and will offer advice to make your business grow. Low cost franchises often comes with a price greater that its initial price tag. So choose your franchise wisely. A little bit of research and feedback from people who have already done business with your prospective company will give you insight whether you want to do business with them or not.