Franchises: why they are ideal for investing with little money in times of inflation

Three questions to ask yourself when investing in franchises

1. They allow you to enter a business already proven by the public

When one launches to create a new product/service there will always be a period where the client will be testing it. That time nobody knows and cannot be calculated. They will like it? Will they consume it? Is it worth what I charge? etc etc. With a franchise those questions are already answered. The product/service is approved by the public.

2. It allows you to have the support of a recognized brand

Competition is high, and that is why it is necessary to allocate a % of income to marketing and advertising. Having the support and marketing strategy of the brand, which has already been in the market for years, will give you an important advantage over competitors.

3. Allows you to be part of a collaborative network with other franchisees

You have a strategic partner (the brand), in addition, you are part of a network that has a common goal. Everyone pulls in the same direction and in times of crisis (such as the pandemic) having collaborators to find solutions, create ideas and support each other is essential for the survival of the business.

The franchise model is in full growth. Currently, in the country there are more than 1,500 brands that operate under this format, and have more than 42,000 stores or points of sale. For this year, from the sector, they expect a growth of 12% in brands and 12% in the sale of new franchises.

In addition to being able to enter with low capital, they have a simple business model to operate, with few employees and a specialized team to assist the franchisee, not only at the beginning, but over time.