With the number of available franchises for sale growing, it makes you onder whether it’s going to continue being a reliable business model as it once was. The ease of being able to slip into a franchise and turn a profit is what has always made them attractive options for individuals who have little to no experience at running a traditional business. On the other hand, this could in fact be the exact problem which has lead to the lack of popularity. While they’re certainly not doing terribly, the growth has slowed while staying within a steady range.
It’s not a business model that I have delved into myself. While I certainly worked at several franchises when I was a teenager, I found the experience to be something less than lackluster. Rarely do they offer more than a quick cash cow for the owner operators. When they are successful they can be considered hugely successful, turning over profits without even trying. I have a friend who owned a Sonic’s Restaurant that, with the luck of having an incredible position for his store, was churning out 6 figures in just under a year. That’s some serious potential for a relatively small business.
Of course, such success is highly dependent upon a number of factors some of which cannot even be equated. A great location will help in the end but being able to actually find a location that is available is going to be incredibly difficult. Finding success in such a way may only be had by purchasing a previously own franchise. There is going to be risk no matter what so always know the exact limits for your finances and how much money you’re willing to lose. Knowing when to sell the franchise can be considered just as important as well.