Have you ever found the idea of building a business from scratch intimidating? Or does buying an existing business seem like a bad idea? Then you might want to consider franchise! And the good thing is, there are several franchises for Investment out there. But before you jump ship and become a franchisee, know what a franchise is first. What is a franchise, by the way?
FranchisesForInvestors.com explains franchise as a form of business where a franchisee is a person that pays an initial fee and subsequent royalties to a franchisor. The franchisor then grants the franchisee the privilege to use its trademark, enjoys continuous support from the franchisor for as long as the contract runs, gets the right to copy, and uses the franchisor’s business models to sell its products and services.
Given that business involves some level of risk – franchise or not – how then do we know if the franchise of the company is ideal in this Trump administration?
Overturned Stifling Court Decision
As a franchisee, the business environment is more favorable as the lobbying of the International Franchise Association to get the National Labor Relations Board (NLRB) to overturn a decision of the Obama administration was granted. What this means is that to be considered a joint- employer, a franchisor would not need to have direct and immediate control over the employment of its workers. For example, it would mean that McDonald’s large franchisor would share the hiring and supervision of franchise employees with its franchisees. This gives the franchisee an increased level of autonomy in running the business.
Another area is where the franchise is a worthy investment is tax reform. A significant overhaul has been made on a tax package that sees the rate of tax cut from 35% to 21% for corporations. This has made now an excellent time to start a franchise business.
Economic Growth Of The Industry
The franchise industry has experienced exponential growth. This is due to a liberal access to capital, and as a result, there’s increased market growth and things being done that serve the interest of the franchising community. You are much more likely to receive funding starting a franchise business than starting your business on your own.
Harnessing The Power Of Leverage
FranchisesForInvestors.com states that unlike building a business from scratch, franchising opens the door to the business world for an entrepreneur. This is possible even when he has no experience as the model is already in place. It offers a ready-made business model, along with training, guidance, and support. Besides, as noted earlier, the economic track record for franchises has been strong.
All businesses involve risk. However, the possibility of not building a business from scratch means there will be a need for less capital on the part of the would-be entrepreneur. And some companies are willing to share their space and market share to an entrepreneur.
Franchising is an excellent investment opportunity, especially in Donald Trump’s administration.