Question about franchising a business

do i choose a well known franchise but might get loan to finance it or an unknown franchise but within my price range? what’s the risk?

Tags: franchise, loan

2 Responses to “Question about franchising a business”

1. erds518 says:

   November 2, 2011 at 3:32 pm

   The two have diffrent impact on your decission

   1. If you chooses to franchise a know product result is people will no longer have difficulty patronizing it because the brand is already stablished. But take note you must pick a brand that is respectable and no issues to the consumers.

   2. If you pick a lesser know franchise to your budget the return of investment depends on how well you will sell the product, the location of the franchise and the availability or diversity of the product to the public. Does people want that product becuase they want it or they buy your product because they are curious about the product.

   but in the end its up to you what to choose but first you must research on the product you are aiming to invest.

2. Fitz says:

   November 3, 2011 at 2:52 pm

   Assuming both franchise businesses is something you have “passion” for and you can find a good location for any of them… then I’d go for:

   A. The unknown franchise but ONLY IF the business can show me that they have a solid and profitable business model, an efficient business system and a reliable franchiser support;

   B. Otherwise, I’ll get the well-known franchise – which most probably has an optimized business model, system and support.