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Franchise Investments

What is a Franchise? Is it a Good Investment?

A franchise is a business which has a proven system in place and typically a large community of people who purchase their products/services and recognize their name brand. These businesses offer franchises or allow others to essentially license their business for use for a royalty in addition to having an agreement in place (a legally binding agreement) outlining what the franchise company will do to support the franchisee (new business owner) in getting his/her business up and running, and on an ongoing basis, and how much the franchisee will pay on an ongoing basis to the corporation with the proven system. These payments can be an up front fee typically, plus a percentage on ongoing sales. This is very important as the higher your fixed/variable expenses per sale, the more money you will need to make and the more business you will need to bring in to generate a profit. Therefore in considering a franchise you want to ensure you are considering a company with a popular product/service that has a successful track record of providing support to new franchises and statistical proof that a majority of their franchises are actually profitable and successful. As with any business investing in a franchise is risky and can be fraught with risk and potential loss of capital (due to ongoing expenses and not enough business coming in). Therefore, prior to investing in any franchise one should give great consideration to the choice of company, the contractual agreement outlining the support/benefits they will receive as a franchise owner, location, expenses, how much business they are likely to do and how successful others have been with the franchise model. There are no guarantees, but you can certainly reduce risks up front by being a prudent investor.

What Can a Franchise Do For Me?

A franchise can be a great way for you to invest and to earn passive income. Depending upon the type of franchise and the amount you are willing to invest in paying others to run the business, you can be more or less involved in the day to day and take on more of a passive owner role. As with any business you will need to be involved a significant amount to ensure its success. However, if you have a goal of financial freedom and independence that requires an increase in passive income, a franchise investment can be a great way to go to reach that goal.

Best Franchises in 2018

Franchise Investing through a corporation or partnership can be a great way to bring in passive income for those with money to invest, who are looking to increase their passive income investments in an attempt to become financially free (If your passive income is greater than your expenses, you are financially free). Some of the hottest franchise investments for the year 2018 are listed below in this author’s opinion.

  1. Jimmy John’s Sandwiches
  2. Subway
  3. Anytime Fitness
  4. Jazzercise
  5. Supercuts
  6. Sportsclips Haircuts
  7. Servpro
  8. Janpro Cleaning Systems
  9. Right at Home (quality care in your home)
  10. Hampton by Hilton

Learn more about the above franchises by clicking the links above or use Franchising.com to research the above and many more franchise businesses available for investing in order to boost passive income. Please understand there are risks involved in investing as with any other type of investment and with any other type of business.