Business ownership comes in different forms. Many of us are interested in entrepreneurship, but we don't have the time or resources to start a business. This is when a franchise is a viable option.
A franchise is essentially a business in a box. Franchises require an initial investment that can range from $10k to several million dollars. There is also an ongoing royalty fee that's typically a percentage of your monthly revenue. Entrepreneur.com has ranked franchises across all categories for your reference. According to their criteria, 7-Eleven Inc. and McDonald's are the top franchises.
When you invest in a franchise, you're paying for intellectual property and a specific blue print for success. Most franchisor's provide extensive training, and offer close guidance during the early stages of the business. Anyone that's tried to start a new business, can see the value of leveraging the franchise model.
New businesses struggle with developing their brand and perfecting their business model. Franchises are designed to address both of these issues:
- Brand Recognition - New businesses allocate a large percentage of their operating budget to marketing and advertising. Most of the marketing dollars are used towards establishing the brand. Successful franchises are already household names. Although marketing is still required, the financial commitment is significantly less.
Proven Business Model - Business owners waste time and money perfecting their business model. It can take years to develop a model that is consistent and successful. The franchise model allows you to learn from the mistakes of others and eliminates most of the trial and error associated with starting a new business.
As with any investment, success is not guaranteed. There are thousands of franchises that cover a wide array of industries. It's in your best interest to pick an interest that aligns with your expertise.
There are several franchises in our directory, and we encourage other black franchise owners to add their businesses to the directory as well.