Investment Ranges for Franchise Opportunities
A franchise, can be defined as a strategic alliance. The goal of this alliance is to increase customers and do better than competitors. In effect, people do not buy franchises, they buy systems, like a branded name, an operating system, and a marketing outreach. Purchasing this “proven system” is done through investing in a license. In order to give all franchises the same “look and feel,” as well as the same type of product and customer service, someone who buys a franchise has to legally abide by the operations, processes, and marketing standards established by the franchisor.
For the purposes of discussion in this article we have divided the investment ranges for franchise opportunities into three ranges. The low range calls for an investment below $100,000. The middle range calls for an investment between $100,000 and $500,000. Finally, the high range calls for an investment above $500,000.
Low Investment Range Franchises — Below $100,000
This range is for those who are just starting their own business. This can be considered an entry-level business opportunity. The price can start as low as $20,000 for a franchise like a kiosk, a home-business opportunity, or a mobile service. The franchise can also be a scaled down version of a larger franchise business.
A few examples will make it clearer:
* Mathnasium Learning Centers is a franchise to offer affordable after-school math tutoring by instructors. The minimum investment is $82,250
* The Tutoring Center is a franchise concept similar to Mathnasium, with the exception that a number of after-school subjects are offered to help students catch up and excel in school. The minimum investment is $60,000.
* Maui Wowi Hawaiian Coffees & Smoothies is a franchise to sell coffee and smoothies. New owners can decide whether they would like a retail location or a mobile operation. The minimum investment is $65,000.
Medium Investment Range Franchises — Between $100,000 and $500,000
This range of franchises focuses on retail-type establishments that may offer health benefits, dining experience, or some type of professional training.
Here are some examples:
* The Zoo Health Club is a gym franchise. The monthly membership offers members a comprehensive line of equipment, health and fitness programs, and personal trainers. The minimum investment is $125,000.
* Wings Etc is a restaurant franchise. Patrons enjoy a pub or sports bar type of dining experience. The minimum investment is $150,000.
* Sandler Training® is a sales training franchise. The Sandler sales technique has gained popularity over a span of three decades as a way to improve the skills of sales people and sales manager. The minimum investment is $100,000.
High Investment Range Franchises — Above $500,000
When people think of franchises, this is what they usually think about because these franchises are ubiquitous in most American cities. This is the range of million dollar businesses with the most popular form being restaurants. KFC, Denny’s, Hardees, Burger 21, and Sonic Drive In are some common examples. These well-branded restaurants can be highly profitable if the restaurant is in a high-traffic location and offers good customer service. While a minimum investment starts at half-a-million, most investments begin in the millions.
Blue Coast Savings Consultants is not a franchise, it is a business opportunity. There are some important differences. A Franchise and Business Opportunity are both complete systems of creating a new company, but they differ in a couple of key ways. A Franchise mandates that you stay in a specific area, often a zip-code, while a Business Opportunity is not restricted geographically.
Here’s another difference, a franchise carries the burden of ongoing franchise fees and requires you to use the main company name. A Business Opportunity often does NOT have an on-going franchise fee, but instead allows you to use their back-end system without mandating the use of the main franchise name. You can learn more on our Frequently Asked Questions page.
If you are looking to start a new business this year we hope you will consider becoming a Blue Coast Savings Consultant. We offer a turn-key business opportunity much like that of a franchise except that there are no ongoing royalties to be paid and there is a low initial licensing fee, one that would fall under the Low Investment Range stated above. Learn more about what’s included and the investment required when you become a Blue Coast Savings Consultant.