Is there a Franchise with your Name on it?

 

January 21, 2014 

                   

JRW_WW.jpg

Take a trip anywhere these days, even Beijing, China, and you will likely see some of the same restaurant names that you see around your home. Franchises are one of the most popular and successful forms of business going. According to CNN Money , the most franchised company in the world is Subway sandwich shops, with a total of nearly 33,000 locations.

 

From an investor’s point of view, owning a franchise offers a way to become an entrepreneur while avoiding the full spectrum of risks that come with developing a business from scratch. Franchises have become so popular that opportunities are now more varied than you may realize, and can be found to fit many different investors’ needs.

 

What most opportunities have in common is an upfront fee and some type of ongoing financial arrangement in exchange for use of the parent company’s name and business model, which presumably has a track record of success.

                                                                                                                                                                                                  

You might want to consider investing in a franchise if:

  • You’re frustrated with a corporate-type job and looking to segue into a different career.
  • You’re looking for fast-track success through the principle of replication. After you have set up one successful franchise, it becomes easier to follow up with additional locations that will multiply your returns.
  • You want a portfolio investment not linked to traditional markets such as stocks and bonds. There are opportunities to invest passively in franchises, where you supply your money but not your time.
  • You’re looking for a high-yield investment with cash flow at a time when interest rates are low.
  • You’re nearing or in retirement and want to re-focus your accrued business acumen into a new venture that’s interesting and stimulating.

To that last point, a study by the Kauffman Foundation found that 55-64 year-olds were the most apt to shift into entrepreneurialism. This makes sense, given the decline of long corporate careers and recognition that people still have a lot of vital years to offer beyond “retirement.”

 

If franchising piques your interest, PARTNERSINWEALTH invites you to attend an informational lunch seminar on February 6. Experts in the field of franchising will tell you more about how to identify and sift through the many opportunities available for investors. Click below for more information and to RSVP:

 

Franchising: Could It Be Your Next Big Investment Opportunity?

 

As always, PARTNERSINWEALTH stands ready to act as a source of information and sounding board for ideas, opportunities and challenges affecting your overall financial life. For more information, helpful guidance or professional assistance with your financial big picture, please contact Jim Waters, CFP®, at PARTNERSINWEALTH, 713.964.4028 or jrw@partnersinwealth.com.