Franchise Investment Opportunity
Benefits & Risk of Franchise Investments
How to Find Good Franchise
How Much Money can you Make
Franchisingkey is the premier franchise company in Pakistan which transforming investments by bringing this unique investment concept to the market. INVEST IN ESTABLISHED & SUCCESSFUL BRANDS, while taking a hands off approach and enjoying high returns.Many people want to make Franchise Investments in tried-and-tested models of Franchise market to ensure Success & Profitability but everyone not has access to the Big International Brands. Franchise Investments have always been reserved for the wealthy few or big corporations as application process is strict & the initial investment is very high, so this limits who can invest in a globally renowned franchise. To give you an idea what the investment is, often ranges $500K to $2-3 Million and may go upward.
Imagine you could have invested in McDonalds, KFC & Subway before they became the Top Food Franchises in the world!
Franchisingkey is now offering the way people can invest in franchises operating in Pakistan through Partnership / Acquisition / Equity Purchase / Land offering and joint venture opportunities which are unique, profitable and secure. Some of these franchisors are corporate giants, their businesses are full of independently owned shops and outlets in multiple locations.
Benefits & Risks of Franchise Investments
Looking to Make Franchise Investments – How to Look at?
Not so fast, there are many things to consider and plan before diving in. Benefits & Risk are always associated with each kind of investments but keep in mind Franchises are Good Investments.
Pros of Franchise Investments
- Becoming a Silent Franchise Partner – earn handsome returns without having to do anything, as all franchises are fully managed and operated by industry experts.
- The Ultimate Investment Payoff of a Franchise – In a well-performing franchise system, the exit value of a franchise may be higher and may deliver a substantial gain because the relationship with the franchisor’s marks increases the value of the business being sold.
- Creating a Portfolio of Franchises – If you can invest in one successful franchise outlet and repeat the process, you can build an entire chain of profitable outlets.
Risks associated with Franchise Investments
Individuals who seek franchise investments need to migrate away from a customer mindset and focus on the investment opportunity. The need for proper due diligence and the identification of key risk factors will determine the success or failure of franchise investment. We hereby, have list down some key risk variables need to be consider when searching for successful franchise investments:
- Franchisee Turnover Rate
- Franchisor Revenue Generation
- Franchisee Growth
- Executive Team
- Franchisor Goodwill- Large, successful franchises have a brand image to uphold. If you attempt to go the rugged individual route, the franchise agreement could be terminated.
- Financial Projection
How to Find a Franchise with Good Return on Investment
Selecting a good franchisor and developing a proper financial projection is a great combination to start your franchise. Even within the same franchise, there can be a wide variation from low to high investment. That likely has to do with the favorability of a particular location, as well as the cost of real estate in a specific city or neighborhood.
The franchisor may provide information on the financial performance of the particular franchise outlet but a proper documentation of Non-Disclosure agreement would require. However, such information will not be available at the very beginning.
How Much Can You Make?
It’s almost impossible to provide approximate figures for franchise profits. In franchising, there are often significant differences in profitability between different business concepts and industries, and many other factors including location, market, operating experience etc. While standard offerings start at 7% and goes to 12% or higher based upon investment model.
The rates of return might be low but these are the safe investments and people tend to continue with franchise investments. According to Morgan Stanley view’s over Global Franchise Portfolio
“The investment team believes that high-quality companies can generate superior returns over the long term. Such businesses are typically built on dominant market positions, underpinned by powerful, hard to replicate intangible assets that can generate high, unlevered returns on capital and strong free cash flows. Other characteristics are recurring revenue streams, pricing power, low capital intensity and the opportunity for organic growth.”
At franchisingkey, we specialize in helping individuals / companies finding the best Franchise Investment that will optimize their earnings. We seek to understand our client’s investment goals, desired location, industries of interest, and investment size, among a variety of important factors, in order to find the best investment opportunities for them.
We provide a comprehensive offering to help our clients in identifying the best investment opportunities and facilitating a smooth transition to the Franchise Industry
- Introduction to Financial and Tax specialists as well as other advisors to facilitate your transition.
- Personalized franchise/business search
- Profile building based upon your skills, background and management style
- Extensive study of the best 4-5 franchises for you
- Business Evaluation, Pros/Cons Analysis & Industry Overview
- Summary of most Important Financial Information from the Franchisor
- Introductions to franchisors and meeting with coaching on steering the franchise evaluation.
Do you have Funds to roll on and earn Fat Fees – Please communicate with us via email at FranInvestments@Franchisingkey.com
The information you provide specifically financial data is Private Information, we hold ourselves to the highest standards in its safekeeping. Your data will be shared only with the Management and then deleted and removed from our records. Because we recognize that your relationship with us is based on trust, and that you expect us to act responsibly.