{"id":3252,"date":"2020-11-19T02:26:59","date_gmt":"2020-11-19T07:26:59","guid":{"rendered":"https:\/\/chapspitbeef.com\/?p=3252"},"modified":"2022-12-11T07:57:57","modified_gmt":"2022-12-11T12:57:57","slug":"avoid-mainstream-popular-franchises","status":"publish","type":"post","link":"https:\/\/chapspitbeef.com\/avoid-mainstream-popular-franchises\/","title":{"rendered":"7 Reasons Why You Should Avoid Mainstream Popular Franchises"},"content":{"rendered":"
You\u2019re finally ready to take the leap and buy a franchise. You\u2019ve done your research, but the mainstream franchises keep popping up and you\u2019re wondering if maybe you should invest in one of the top 10 franchises<\/a>. As tempting as that may seem, there is a lot underneath that shiny topcoat.<\/p>\n Popular franchises might be appealing because of how well-known they are and their proven success posted on every entrepreneur publication for the top franchises to invest in. But we want to shed some light on franchise opportunities<\/a> and explore why the popular franchises might not be all their cracked up to be.<\/p>\n Starting with the initial buy-in cost<\/strong>, where you will be asked to pay a one-time initial fee<\/strong> to become one of their franchisees. If you\u2019re lucky, this fee can be as low as $10,000 – but more often than not, they typically average around $25,000. Some franchise\u2019s initial buy-in fees can be as high as $500,000 or MORE and up to 8.5% of your monthly sales.<\/p>\n Example: The cost of opening a Starbucks licensed store is in the ballpark of $300,000 or more. Not to mention all the hoops you have to jump through before they will even consider your application.<\/p>\n When you buy one of the top franchises<\/a> that are trending heavily across all markets, you are literally buying a team of shareholders. Most popular franchises<\/a> have six to eight directors on their board and a ton of other committee members.<\/p>\n If that doesn\u2019t scare you, then maybe knowing your profit margin<\/a> is reduced due to all the excess fees that come with buying popular franchises.<\/p>\n In smaller franchises, you have smaller fees and more control over your expenses.<\/p>\n One of the biggest costs that your bottom line will take a hit from is brand recognition. You know all those big billboards and fancy commercials – yeah, you\u2019re paying for them. Your initial investment will include brand recognition, but then you will contribute to an ongoing fund that promotes more awareness of the brand.<\/p>\n Every company needs advertising for people to find your brand, but the top 10 franchises and many others are already widely known across the world – think about McDonald\u2019s, Burger King, Pizza Hut, etc., how much good is all that advertising doing when everybody already knows their brand?<\/p>\n1. The Bigger The Franchise, The Bigger The Costs<\/h2>\n
2. Your Profits Will Take A Hit<\/h2>\n
3. You\u2019re Paying For The Brand<\/h2>\n