Why Should You Consider A High Investment Franchise?

High investment suggests high rewards, making this sector extremely attractive to the ambitious franchise owner. Tiffany Brooking reveals the benefits of high investment franchises and what the industry has to offer.

Many of the large multi-national corporates such as McDonald’s and Hilton Hotels are in fact franchises – at this level in the franchising market, the potential for significant financial gain clearly exists.

High investment franchise opportunities are usually considered to start at £100,000 for a single unit, with many exceeding £1 million – depending on what sector you choose to launch your franchise in.

High investment franchise opportunities are available in a variety of sectors, including sit-down restaurants, hotels and motels, equipment suppliers, fitness centres, printing franchises, rental centres, auto repair and maintenance, and many others that also require an investment in real estate and equipment.

High investment or multi-unit franchises can be a great addition to a high yield investment portfolio, or a dynamic new full-time job. Many higher-end franchises also give you the opportunity to become an Area Developer, with your managers organising multiple units.

A perfect example of a successful high investment franchise owner is CeX franchisee Zuber Patel. Since launching his first entertainment franchise in 2008, Zuber has gone on to open a further four stores and recruit an extensive management team to oversee the daily operation of his businesses.

“One of the biggest benefits of being my own boss is being able to take weekends off work so I can spend quality time with my wife and children,” explains Zuber. “The fact I can spend so much valuable time with my family is testament to how great all of my staff are. I would not have the time and definitely would not be as successful if it was not for their efforts.

“The financial rewards are also very good,” continues Zuber. “I have been on numerous exotic holidays with my family and plan to see more of the world.”

For some, five stores would be more than enough to handle but Zuber has no plans of slowing down his business expansion with ambitious plans to have a further two to three stores open by the end of 2013.

Be sure to research many different industries and competing concepts to get the best return on your investment and find the best opportunity for you.

One of the biggest benefits of buying a high investment franchise is, if they are successful, a higher level of investment should yield higher return.

Another advantage is the more expensive franchises are better known in the marketplace, therefore they can command a higher price – often times you are buying into the value of a well-known name.

They should also have proven formulas for success, which means your investment risk factor will be lower than it would be for a less proven franchise system. Also, you will find that those more established franchises that have experienced a long history of advertising and promotion of their products or services have, in turn, created a higher level of demand, which results in a premium price for their franchise.

The less expensive franchises may not have any name recognition and are therefore looking to expand their presence in the market by offering their franchises at a much lower price.

Explore our high investment franchises section to learn more about the industry and the opportunities they present.

Buying a high investment franchise is a serious and costly commitment – you must be sure you have done all of your due diligence on the franchise system, the franchisor and the specific franchise territory or site you are considering before signing an agreement.