Start-Up Franchises & Investments 

People with the desire to own their own business can build their venture from square one or they can build their venture within the structure and support of a larger venture – the franchise. The latter can be far less risky and exhausting than growing a business from the ground up, yet still quench the entrepreneur’s thirst for putting his stamp on the business world. The start-up franchise opportunity is a great option for the highly motivated investor who is open to taking a measured, controlled risk with the potential for a healthy reward.

The start-up investment commitment between a franchised and non-franchised business varies greatly, and on the surface it would appear that the franchise is a much more costly endeavor. A closer look tells the truth: while on average, it costs much less to start up a non-franchised business, this is because the investor isn’t paying for the use of an established brand’s name, logo and business systems. Brand recognition and reputation are invaluable assets – assets the non-franchised start-up will have to work long and hard, and invest mightily in, to achieve.

As for the business systems that come with a franchise agreement? Those can literally be worth their weight in gold. The franchisor has already developed plans, processes and resources.  Successful employee training programs have been designed. Solid systems of operation have been established. Marketing and advertising campaigns have been developed. In other words, the initial investment in a start-up franchise is not small, but it delivers impressive ROI.

Despite all of the controls built into the franchise model, there are still many ways a franchisee can take additional risks with franchising to reap even greater rewards. For example, if the investment is with a newer franchise system, there’s a genuine feeling of “starting up” that appeals to many entrepreneurs.  Many franchisors are very open to franchisee input, something that has spawned some franchisors to innovate within their existing product lines and diversify into others. The potential to identify “gaps” and then sell the franchisor on an idea to fill them can be very appealing to those with a start-up mindset.