Whenever we hear the word franchise, we tend to think of the McDonald’s and KFC’s of the world but in true fact, there are many other businesses that are operating under a franchise model. You can buy in to a service franchise from a reasonable $15-$25,000 range up to millions and hundreds of millions. Take the time to investigate, you will see that almost every type of business can be and is franchised.
Whenever we hear the word franchise, we tend to think of the McDonald’s and KFC’s of the world but in true fact, there are many other businesses that are operating under a franchise model. You can buy in to a service franchise from a reasonable $15-$25,000 range up to millions and hundreds of millions. Take the time to investigate, you will see that almost every type of business can be and is franchised.
You are a person of means and are looking for the ‘’Just Right’’ business opportunity yet you don’t want to be stuck in the basement office running a franchise that really ends up being a job? Depending on your skills, you may be the perfect candidate for one of the larger, high profile ‘’Service’’ franchises. These are targeted to those you who thrive on major challenges, those that need to deliver a substantial bottom line and still want that corporate style environment that can only be afforded with a business that can yield a high return on equity, a work environment that will offer up daily challenges and supply the rewards of dealing in cutting edge industries.
What are they? Real estate brokerage, Investment firms, Hotel chains, auto rental services and some more subtle yet potentially more rewarding. Such is the case with dealing in carbon credits… The world is clamoring for an ever growing effort in reducing our carbon footprint and there are businesses that are offering just that. The franchisor will supply the methodology and the infrastructure for a franchisee to operate in a licensed territory. The franchisee will reach out and offer monetary rewards to potentially thousands of small non regulated emitters for investing in technology and behavior change that would reduce their carbon footprint then the franchisor acts as a ‘’carbon credit bank’’, sells these bundles of verified carbon units to corporations and organizations that are sponsoring these reductions, for corporate social responsibility policy and leadership while they implement their own reduction plans.
A sound strategy: There are not a slew of these around but if you take the time, you can find one.
What are the pros and cons of service franchise?
Pros:
- Little or no capital expenditures into infrastructure and real estate and equipment.
- Relatively easy to set up and operate
- Offers a dynamic work environment
- Appeal to your higher motives by being proactive in a sustainable world.
Cons:
- Financing may be more challenging because there are fewer fixed assets that can be offered as guarantee.
- These types of franchises are dependent on each level of government regulations.
- Recruitment of adequate selling personnel is critical as you are dealing with complex concepts.
Reproduced with permission of Nosco Solutions.
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