£10k Franchise

alona1

Hiya,

If you had £10k to invest in a franchise, what would you invest in? Or would you stay away from franchises? Whats your opinions?

Thanks

Rollinghome

In most cases I'd stay well away from them, or at least delve into them very, very carefully.

Despite the claims it's very rare for the interests of of the franchisee to align with those of the franchisor. The rare exceptions seem to be those into businesses with valuable brand-names that have very large capital requirements.

If we go back to high unemployment no doubt we'll have another rash of franchise offers to part people from their redundancy money.

alona1

Yeah I thought that might be the case. What about buying a window cleaning round or something like this?

Rollinghome

alona1 wrote: »

Yeah I thought that might be the case. What about buying a window cleaning round or something like this?

If there's a genuine reason for selling and you can do a proper evaluation of what you get then buying an existing business like that can make more sense. So would buying out an existing franchisee. That way you get to see proper figures rather than make-believe numbers on a page.

There have been more than a few hustlers out there who made their money from the startup fees rather than from on-going revenue and a lot of money is made for lawyers from the wrangles between franchisees and franchisors.