In an open market economy, it can be a very smart idea to start your own business. Of course, starting a business is not easy. You need to have a capital idea as well as a plan to execute it efficiently. And then, of course, you need to have the money to invest in it.
There are ways around some of these requirements, obviously. For one, instead of starting your own business from scratch, you could buy into a publicly franchised company.
What Is Public Franchising?
McDonald’s is a public franchise; actually, that is true of most fast food chains. The company has established a brand, an image, a product, etc, and you can buy an opportunity to open your own “store” that has already been established. If you were to buy into a fast food chain—like McDonald’s, for example—you would pay them the franchise fee (like a down payment) and that gives you access to their business plan and even their management team so you can train your new employees.
What Does Franchising Cost?
Typically, you would have to pay something up front to get started with a Ben et Florentine franchise for sale. And, typically, this fee would not only the personnel but also the location (which they usually find for you) and all of the equipment. At the low end, a franchise with a small company could cost you $10,000 (USD) up front. A franchise with a much larger company, though, could be much more.
If you wanted to open an auto repair show with an established company, for example, it could cost between $200,000 and $300,000. A fast food franchise, like McDonald’s would run you about $1 million (but smaller, lesser known chains could be much less). For a full service restaurant, you could be shelling out between $750,000 and $3 million up front; a high end hotel franchise could set you back $5 million or more.
If you were to buy the rights for a home-based business franchise, though, it might only cost you a few hundred dollars to register, but you will have to spend extra money on other aspects of the business. These are all optional but are wise purchases as they typically help you get started more quickly. These can include:
- office space
- office equipment
- products (for samples, for stock, etc)
- administrative support