Are franchises a good investment?Are franchises a good investment

The idea of buying a franchise is very popular regardless of your background and experience. Whether you are a new entrepreneur or have run your own businesses before, franchises remain one of the most popular business investments today, so now we face the question of are franchises a good investment? The short answer is yes if you want to find out why franchises are great investments, please continue reading this article where we explain why.

Why are franchises a good investment?

Now that we have told you franchises are a good investment, you may now be wondering why or what are the benefits of investing in a franchise instead of starting up my own business solo. If you are unsure of the benefits you will receive upon investing in a franchise, don’t worry; below, we will list the main advantages of investing in a franchise you may not have thought about.

  • Easier access to financing

Business owners usually struggle to get access to financing and loans for businesses. This is because lenders are less likely to fund a business with no proven success record as it is a significant risk. This is entirely different when you are investing in a franchise, as lenders will usually give you access to the capital you need. This is because a franchise is an established business with a proven track record of previous success, meaning the risk is significantly lower than lending money to a new business owner still in the startup stage.

  • Access to a proven business model

As mentioned above, franchises come with a proven business model, meaning you can see a faster return on your investment since you are not building a business from nothing. This does not mean that running a franchise business is easy though there is still hard work that needs to be done by the franchisee, but it is definitely easier to start a business that already has a strong brand name and an established customer base.

  • You receive support & training from your franchisor.

When you are new to a business in a particular field, you know getting training & support from someone who has experience in that field is truly invaluable. This is another reason why a franchises success rates are considerably higher than an independent business from day one. As a new franchisee you will receive training & support. Some franchises even allow you to have access to a network of existing franchisees who can also offer you support.

What kinds of franchises are the most profitable to own?

Now you know why franchises make a good investment and why you may wonder what kinds of franchises are the most profitable. The most profitable franchises are the ones with the highest ROI. Ideally, you would want to find a franchise with large profit margins for their services and low operational costs. A great place to start for finding a franchise like this would be to browse low-cost franchises.

Many low-cost franchises operate from home or on the go, removing the need for a physical franchise location, and drastically reducing startup costs in many ways. For example, you don’t have to pay rent for a location each month, building fees, utilities, or other expenses that can cut into your potential profits allowing you to see a faster return on your investment.

Final thoughts

We hope this article has helped you understand why franchises can make good investments and why you should consider investing in one. If you need more information about buying a franchise or finding the best franchise for you and your needs, feel free to check out the articles on our blog dedicated to providing you with quality franchising information free of charge.

Free Franchise Matching Service Enquiry Form

Searching for the ideal franchise? Don't search for hours use our Free Franchise Matching Service. Just complete the form below & receive details of franchise types you select PLUS a copy of our FREE Franchise Guide straight to your inbox!

Required - I have read and accept the Franchise UK Privacy Policy found by clicking here and am happy for my contact details to be shared with franchises seeking to recruit new franchisees & Franchise UK partners
I would like to receive the Franchise UK newsletter containing the latest franchise opportunities and news
I would like to receive occasional SMS messages about relevant opportunities