I’ve had some people ask me about the feasibility of franchising
for an investment in the upcoming year. This 2013 had played its toll on the
European economy. The Euro zone crisis took the most highlight with the
property bubble bursting and the currency’s value dropping. Everyone has
smaller capital to start with. So is franchising a feasible solution?
1.
Franchiser’s Health
Many strong fastfood and restaurant chains still remain
strong especially in the corporate areas of many countries. However, those that
gain greater recognition from consumers are the ones that present something
unique, and most of these are small businesses. Now small businesses are likely
higher risk investments, but they’re innovative. If you haven’t taken a risk
with your investment for quite a while, asking the small business for
franchising could open up great opportunities.
2.
Franchise Fees
The only downside to franchising is that you will really
have to pay higher franchise fees. Resources, establishment and training fees
are rising because of competitiveness and a proprietor will need to scrounge up
some high capital. As for returns, refer to number one.
3.
Attractiveness
Still, the kind of company you work with will be the basis
of your business’ attractiveness to audiences. Targeting children with
kid-themed fastfood could work when you are established in nearby schools or supermalls.
However, stay away from standard franchises, such as McDonalds or KFC; they are
not as attractive as they once were and more people are leaning to either
extreme dishes (giant burgers or fries) or fusion and specialty dishes.
No comments:
Post a Comment