March 29, 2013 Franchise Direct – Holly Lewis
A franchise that appears investment worthy to one potential investor may not to another and this fact is common knowledge to most anyone experienced or even new to franchising. The reason for this is simple: people differ, opportunities suit certain individuals and not others, and each potential investor must make personal assessments when considering how and where to invest.
With this in mind, well positioned franchises in new or even established markets can offer an appealing package to potential franchise owners who are naturally suited for or experienced within the respective industry. Despite the subjective nature of choosing a franchise system, superb positioning, whether related to literal location or the leverage of the brand, along with a record of lower investment costs coupled with an intellectual property safeguard that attracts attention in the given market are sure signs of an appealing package. The details of how an arrangement such as this appears in any given industry or country are endless yet franchisees sniffing out an investment opportunity locally or abroad can consider these framework aspects and weigh them in relation to personal goals.
The less daunting the market, the better, and for US franchises moving into markets with similar cultural and language backgrounds, investment opportunities become even more plentiful and without the burden of adjusting the brand to markedly different cultural norms. Industries that linger in the “recession proof” category are worth checking into, be they locally or globally placed, which means human services often top the list, especially in countries where cultures and social economics dictate the kinds of services that will be sought. Both master franchising internationally and single unit franchising locally can succeed in these industries.
One excellent example of this is health care services related to in and out of home care for aging populations where families are culturally and economically impacted in such a way that seeking outside assistance is necessary. Services provided by franchises in senior and family care industries that offer alternative approaches to care giving are positioned for growth, especially when their trademark image and company culture is easily recognized amidst competition.
Another example is business to business services provided by a franchise that enables legal and regulatory compliance with a twist. Providing first aid and medical supplies to businesses that must be kept on site can seem simple enough, which it no doubt may be, yet when this need is fulfilled by a well positioned brand that can be relied upon throughout a market area for distribution, a rapport between client and franchise is established. Easily recognized brands, which excel at keeping companies in compliance so as to avoid auditing disasters, offer an appealing investment package to investors. The appeal is amplified if initial investment is relatively low with a history of earnings declarations, and existing franchisees consistently report contentment with their role in the franchise system.
Establishing the worth of a franchise when considering investment is one thing, and locating the right market to move into is another. Yet these two concepts overlap considerably whether master franchising abroad is the aim or single unit at home. Establish the franchises that have experienced and will experience the most growth based on human services, those services directly related to evident lifestyle trends, human care services, health, wellness, and regulatory measures of compliance in these areas.