It can be depending on the type of franchise an individual is buying into. Some of the costlier franchises to buy into are fast food establishments such as McDonald’s as well as gas stations. But there are also franchises out there that don’t require an individual to break the bank. In fact, CNBC highlighted a few of these in 2019 that cost $15,000 or less to launch.
Some of these include:
- Dream Vacations
The start-up costs associated with this business were estimated to be around $9,800 and the average annual sales were recorded at $336,971.
- Complete Weddings + Events
The start-up costs associated with franchising this business were around $10,000. Although the average annual sales were not disclosed, CNBC says the wedding industry is estimated to bring in $72 billion annually.
- Showhomes Home Staging
According to data from 2018, the start-up costs associated with franchising with Showhomes Home Staging was $10,000. The average annual sales were also recorded at $377,258.
- TSS Photography
Franchising fees for this company were set at around $10,500 and the average annual sales were around $148,222.
- Cruise Planners
The start-up costs an individual might incur if they are looking to purchase a franchise in this business is around $10,995. The businesses’ estimated average annual sales were $273,978.
Why choose a franchise over starting a new business?
When an individual buys into a franchise, they are buying into an already established business. Most of the hard work is already done and all they are required to do is take over a new or existing location and get to work. Starting a business, on the other hand, means an individual is starting from scratch. They will have to test out methods and marketing tactics to see what works and are likely to suffer a loss during their first year.
Some of the other advantages of buying into a franchise include:
- The business owner will likely receive training to get the business going.
- Marketing materials may be provided.
- The location may be selected by the franchisor to ensure it is in a good location.
- The franchisee will be provided with guidance and help from the franchisor.
One of the downsides to franchising, however, is that the new business owner will likely have to pay ongoing royalties to the franchisor.
Weighing the Pros and Cons of Buying Into a Franchise
If an individual in Orlando is considering buying into a franchise over starting a new business, they need to be sure they understand what exactly they are getting themselves into. Franchises not only cost money upfront, even if an individual has obtained a lender, but the franchisee may also be required to pay the franchisor a certain amount of their profits each year. In addition, when an individual agrees to franchise, it means they are entering into a legally binding agreement that will result in financial consequences if they decide they want out.
With that in mind, if a business owner in Orlando is looking to franchise, they should first consult with an Orlando, FL business law attorney. The business law lawyers at Legal Counsel P.A. can help an individual weigh the pros and cons associated with franchising and can even review the paperwork with them to ensure they understand the agreement they are considering getting into.
To receive an initial consultation with an Orlando, FL business law attorney, contact Legal Counsel P.A. at 407-395-2653.
Legal Counsel P.A. is located at:
189 S. Orange Avenue, Ste. 1800
Orlando, FL 32801
Email: [email protected]