Is A Retail Franchise The Right Choice For You?
Many franchises within the retail sector require a higher level of investment compared to other franchise opportunities, however they also tend to offer higher levels of returns.
Franchise opportunities that fall under the retail section vary greatly in their business type and can include brands as diverse as pre-owned good stores, such as Cash Generator and CeX, to freshly baked pretzel stands like Auntie Anne’s.
What unites all these brands is the fact they are operated from a retail premises, whether it is a store, concession stand, or stall.
One of the advantages of owning a retail franchise is that they are often located in busy shopping areas. This not only helps to raise the franchise brand’s profile, but also helps franchise owners to attract impulse shoppers passing by.
Often retail franchises will sell products that are purchased by consumers no mater what the economic situation. Some retail franchises, such as pre-owned good stores and pizza delivery franchises, see many of their stores preform better during periods of economic difficulties.
Retail franchises tend to appeal to people who have experience of working within the retail sector. It is not unusual for a retail franchisor to require franchise owners to have at least some business or retail experience prior to investing in the franchise, however not all franchisors demand this and the majority provide thorough training and support programmes to new franchise owners.
A retail franchise would not suit somebody who is looking for a small, hands-on business. A retail franchise will require hiring and managing staff, as well as working long hours and usually weekends as well.
On top of this it is important to remember that although the turnover levels of a retail franchise can be high, the outgoings tend to be more than any other type of franchise. Franchise owners will normally have to pay rent, bills such as heating and electricity, staff wages, and stock.
Despite this many franchise owners have owned and operated very successful retail franchises, made great profits from them, enjoyed a good working/life balance, and some have even branched out to become multi-unit franchise owners.
Click here to see a selection of retail franchises opportunities currently
recruiting new franchise owners.
Written by Derin Clark