Is Investing in a Franchise a Sure Thing?
The New York Times profiled several franchisees in its Wealth Matters column recently and found that it takes a certain kind of entrepreneur to succeed as a franchisee: one who is comfortable running a business in a prescribed way.
And for those who have a passion for managing a process, investing in franchises can be very lucrative.
Lawrence J. Cohen, president and CEO of Cookie Associates, which owns Great American Cookies, TCBY and Pretzelmaker franchise stores, said, “The nice thing about franchises is you have an entrepreneur who has a product or a service and they have proven they can be successful selling it. They don’t guarantee success. But if you do it their way, your chances of success are far greater than if you do it on your own.”
The franchise investors profiled in the Times article agreed on one critical component of a successful franchise operation: paying attention to the people part of the business. Having someone to manage the day-to-day operations is crucial, and people who just want to invest in a franchise need to hire proven operators.
For investors who want to run more than one franchise, the type of franchise they start with matters. One investor says he chose Kentucky Fried Chicken because he knew it would be easier to get financing for a proven business with a good track record and customer base.
You can learn more about franchise investment opportunities at our free June 26 webinar, Franchise Ownership as a More Stable Career Path. The webinar is free, but you need to pre-register, which you can do online by clicking on the linked seminar title.
You may also register by calling 866-246-2884.