Looking Beyond Initial Franchise Fees When Considering Low Cost Franchises
Sometimes people who want to enter business for themselves, look only at the initial financial investment when considering low cost franchises. However, there is much more to franchise start up costs than the initial franchise fee.
Ask What Start-up Costs Include
Start-up costs are basically the amount of money you’ll need to open your own franchise. While all franchises have start-up costs, the type and amount can vary greatly.
One of the best places to find out how much money you will need to invest to open the doors on your new franchise is the Uniform Franchise Offering Circular (UFOC). This is a document the franchisor sends to the potential franchisee, its purpose is to give you a range of possible startup expenses.
Some of the costs associated with many new franchise operations include:
Initial franchise fee (upfront, one-time cost that allows you to utilize a franchisor’s brand) Supplies, equipment, and inventory Facility improvements (for businesses that operate outside the home) Licenses, permits, insurance Marketing and advertising Working capital
Talk to the franchisor about which of these, or any other fees will apply to the franchise you want to open. Then you’ll have a much better working knowledge and understanding to help you determine if the franchise you’re considering fits into your budget.
Don’t Forget to Consider Working Capital
One of the primary costs of operating any business is working capital. While working capital is a vital component of the start-up costs, new franchisees will find that having sufficient ongoing working capital to remain in business is an ongoing and extremely important factor.
In the beginning you will need enough working capital to pay your bills until your business generates enough income to pay for ongoing costs such as utilities, rent, employee salaries, legal and accounting fees, and royalties (percent of the profits paid to franchisor).
The Blue Coast Opportunity
Blue Coast Savings Consultants is NOT a franchise, but a Business Opportunity. A franchise dictates your entire business operation in terms of how you fulfill your operations and how you market yourself, how you take care of the back office, basically everything. A Business Opportunity like Blue Coast gives you the basic framework to succeed and allows you and your creativity to do the rest.
In Blue Coast’s case, our Consultants start their own company and use THEIR OWN name to run their business. In essence you could say that a Business Opportunity like Blue Coast is a Franchise, but without the strict rules and requirement to use our brand and logo.
Blue Coast provides a process by which you can determine how much and how many different ways clients can save money. Then, as a Blue Coast Savings Consultant you can implement those savings for the client and take all the credit.
For more information about our business opportunities, our business assessment savings tool, and our materials to promote your business, check out our website, review our blog, and then contact us with your questions.