While cost is a key factor when choosing a franchise, it's not the only one. Consider these points.
Nothing is free. We wish it were true, but we know it’s not. And you know if you want to start a business and make money, you have to spend money first. Determining how much a franchise costs and how much you willing to invest are the real questions you should ask.
In franchising, your investment choices can vary greatly, anywhere from a low-cost franchise for less than $10,000 to concepts that are $5 million or more. The amount of money you have available to invest towards the franchise costs will help you determine what industry is the right fit for you.
When looking at franchise fees, it’s important to look deeper than just the cost. Consider the industry and the potential within that industry. How strong is the brand among its competitors? And how much support is “built in” to the low franchise costs? Some franchisors simply charge for brand equity and do little to support a franchisee. That’s a hidden factor that can become a real problem down the line, which is why it’s critical to carefully weigh the pros and cons of each opportunity when making a decision.
Consider this about The UPS Store:
Small Businesses Count on Us—There are 23 million small businesses in America, an increase of 49% since 1982, according to the U.S. Small Business Administration. Small businesses are what we serve and that’s why both the high and the low-cost franchise models have been so lucrative for four decades. In 2012, the adjusted gross sales of our top 20 percent performing centers was $642,842, an 11% increase from 2010.1
#1 in the Market
The UPS Store is recognized as a top retail brand by The Business Journals’ American Brand Excellence Awards and has been ranked #1 in the business services industry for 31 consecutive years by Entrepreneur Magazine’s Franchise 500.
Ongoing Franchise Support
The UPS Store provides its franchisees with ongoing national advertising campaigns to help build brand awareness for their stores, world-class training and operational support and tools to help sustain a healthy bottom line.
Modest Investment Gets You Maximum Return
The start-up costs, including the franchise fee, for a The UPS Store franchise are approximately $150,000 (less for veterans). Our franchisees have a successful track record that has prompted more than one-third of our franchisees to open multiple locations.1
Whether you are looking at low-cost franchises or have your eyes on a franchise sporting a higher price tag, it’s important to look beyond the franchise cost to really see what you are getting for your hard-earned dollar.
1 This is not an offer to sell a franchise. The average adjusted gross sales for each center and of the top 20 centers are published in Item 19 of The UPS Store 2013 Franchise Disclosure Document.