Entrepreneurs see franchising as a good investment strategy

Carrying out a venture is not an easy task, however, since we are considering starting a new business, we also face many complicated situations that lead us to learn from trial and error. In this aspect, many entrepreneurs opt for the option of acquiring a franchise that can provide a new investment opportunity and thus a high possibility of success, so many of them prefer to invest in brands already recognized, under the support and advice of the franchisor.

For entrepreneurs, the main obstacles they face when starting their own business are the costs from scratch, which has become a brake that discourages potential investors.

Factors to acquire a franchise

In the case of the franchise, the investment depends on many factors and the entrepreneur should start by asking himself these questions:

– What kind of business do I want to start?

– What sector do I want to attend to?

– What kind of premises will I acquire?

– How long will the contract last?

– What is the reputation of the brand?

– How many years of experience does the brand have?

– Will you provide me with adequate training?

– Do you have an advertising agency or support?

Once these questions have been asked, the entrepreneur will be able to adapt his capital and choose the franchise that is most profitable and fulfills his expectations, analyze and experience his capacity as a franchisee, since being at the head of a franchise, you will not only act as a passive investor, but you will also have to believe in the role of an executive entrepreneur, which is a major challenge.

Advantages of choosing the franchise model for entrepreneurs

An important point is that, regardless of whether you have experience in entrepreneurship or business issues, betting on a franchise will provide you with permanent advice, since this business model is based mainly on this feature, since you will be constantly trained and supported by the franchisor at the time of operating the business, which motivates the entrepreneur to invest in a franchise system.
Belonging to a successful network of franchises in constant growth and with years of proven experience, guarantees the entrepreneur to keep updated with the changes and movements that occur in the market niche and meet the challenges together by reducing the initial risk.
The right to use the brand and a corporate manual that supports you in the company’s communication in the media.
Access to experience and knowledge better called know-how or the know-how of a successful company.
The necessary working tools to achieve growth objectives.
Acquiring a franchise can be a good investment strategy since they are proven businesses that represent an excellent opportunity to enter the business world, minimizing the risks of losing the initial investment. If you wish to invest your capital, acquiring a franchise is an excellent option. Get in touch with an expert to give you advice and guidance on the path of your business.



If you are one of those well-managed people who know ways to invest money, you will like this article and if, on the contrary, you are one of those whose money burns in their hands, stay, perhaps we can encourage you to start saving when you know the 5 profitable ways to invest money.

1. Loans between people on the Internet.

In English it is known as “Peer To Peer Lending” and results in a new type of investment that works through companies or companies that help connect people looking for money with people who want to invest it. Its operation is very simple and the rules of the game are clear, so if you invest through a serious company, it is a very safe option to invest money. In addition, the company is in charge of all the paperwork, you just have to register, choose the credit you want to fund and then sit back and wait for the interest. The expected return is very good, from 12% to 20% and the risk will depend on the type of credit you choose, as well as the term.

2. Stock market.

You can invest in the shares of companies listed on the stock market. If the shares go up from the moment you invest to the moment you sell, you will make a profit and on the contrary, if after investing in one or several shares, they go down, you will have a loss. Because of this, the risk of investing your savings in the stock market is high but you can get a return of 15% – 25% more or less. These investments are considered – or should be considered – long term since by eliminating the daily fluctuations the returns are constant and can be high.

3. Entrepreneurial Capital.

Also known as Venture Capital, it consists of funds that are dedicated to investing in newly created companies with high income potential and impact. Do the words start up ring a bell? Ah, well, that’s where these investment funds operate. Venture capital funds are managed by investment professionals. Their risk is high because if the start up or the group of start ups in which you invest does not work, you will have losses. On the other hand, the return on investment is very long but can be more than 30%.

4. You will delight your senses and gain the admiration of those around you.

Buying art from an emerging artist, betting that several years later it will become famous and quoted, is a way to invest money that is fashionable. The risk is medium with an expected return of 10-15% but in the long term.

5. Show Business.

That’s right, investing in theater or film can be very lucrative if you know how to choose well, although the risk is high because in reality, no one knows for sure if a production or film will be to the liking of audiences. The expected return is usually over 80% and the recovery is quick.

We hope that these 5 profitable ways to invest money have been to your liking.

Cheap and profitable franchises what to evaluate before investing

Cheap and profitable franchises: what to evaluate before investing

For many entrepreneurs, the franchise model is the best option to realize the dream of a business of their own. Currently, there are countless alternatives of cheap and lucrative franchises in which it is possible to invest, however, some care is needed before choosing a brand, so as not to end up losing capital.

How to invest in cheap and lucrative franchises

According to Carlos Solanet, Commercial Director of La Rural, Predio Ferial de Buenos Aires, and co-organizer of the Argentina Franchise 2015 exhibition, the franchiser must present the interested party in acquiring the business with the minimum economic results of its commercial activity of the previous two years, guaranteeing what was promised. Thus, the entrepreneur who wishes to open the franchise can evaluate the background.

“Those are the most important factors to consider. Any other type of consideration will be more related to the business that the franchisee is interested in joining”, he explains.

Solanet also states that, based on the regulation of the contract and the incorporation of the tested system (the presentation of the results), the law provides guarantees regarding the expected return on investment for any type of franchise.

“Then the results obtained can be proportional to the size of the franchiser’s brand and the investment made in its sales promotion; but it cannot be said that a franchise, because it is cheaper, is not profitable,” he adds.

Three cheap and lucrative franchises

With these considerations in mind, it is time to choose a franchise brand to invest in. Meet three cheap and lucrative franchises present in Latin American countries, with data from the Franchise Direct portal.


This franchise offers a search service for nearby restaurants and allows users to order online. OrdersIn allows the registration of establishments without financial conditions to have their own digital platform.

For the entrepreneur who wants to invest in this franchise, the cost is equivalent to US$ 200 dollars related to the license. The value charged to the registered establishments is charged to the distributor, who keeps all the profit.

Tag On That

With a total investment between US$ 2.5 thousand and 3 thousand, the franchise bets on personalized products from the printing of images, photographs, logos and messages. Among the items that can be produced, it is possible to cite objects made of wood, metal, plastic, glass and rubber, for example.

With the franchise, which has a printing system, the entrepreneurs can create personalized items and obtain benefits from the sale of the products.


Kinderdance is a franchise that targets children. Whoever is franchised is part of a program that includes dance classrooms and gymnastics for the little ones. It is not necessary to have a studio for the classrooms, and the entrepreneur has a training before working.

The cost of the franchise varies, as there are different levels related to the number of teachers and the work period. For the bronze level, the most basic, the initial franchise fee is US$ 12 thousand.


Now that you know some cheap and lucrative franchises and if you know what kind of business you want to invest in, it is essential to know other options and in this case, research is fundamental. Before entering the market as a franchisee, do not forget to analyze the economic results presented by the franchisor.

opportunities-to -invest-in -franchising

7 opportunities to invest in franchising

These franchises offer new products and services in their sectors without completely discarding the traditional procedures, and can be found in the Entrepreneurs’ Franchise search engine.


This ensign highlights as a competitive advantage the combination of the clinic and shop concepts, since they offer complementary services to the products they sell, such as machines, physiotherapy or aesthetic medicine.

At this time, Salud y Aromas is looking for a franchisee focused on self-employment, with previous experience in the health sector. “It is also designed for entrepreneurs who already have an herbalist shop and who want to renew and boost their business,” they add from the head office.


As the main competitive advantage, the head office of this ensign dedicated to Property Management emphasizes that the price of the entrance fee and the initial investment are cheaper than the competition. At the moment, they are looking for a franchisee “with commercial and work capacity”.


This ensign, specialized in training in English for children, highlights its portability, as it does not require a commercial premise, its profitability, its innovative character, “ideal for self-employment and easy stability for the entrepreneur”, and commercial and operational training from the first moments of operation.

As an associate profile, the head office recognizes that they are looking for a “person with a vocation for teaching, with a clear sense of professionalism and knowledge of the language. “We are looking for a franchisee willing to get directly involved in the commercial and operational management of the business, devoting their time and management skills to teaching, marketing and controlling the activity”.


This chain specializes in diode laser hair removal highlights, as competitive advantages, a competitive price in single sessions -without bonuss- or quality suppliers in its segment. In addition, they emphasize that “the headquarters is involved from the beginning with the franchisee through an intensive training program and constant monitoring and advice.


As competitive advantages, this ensign highlights its concept of personal shopper real estate, a pioneer in Spain. In addition, from the head office they emphasize the international character of Property Buyers by Somrie. “One of the biggest advantages of being a Personal Shopper is that you do not have an established portfolio of properties. At the request of its client, the PSI seeks and offers the most appropriate properties to their needs. It also operates in the area or sector it knows, which facilitates its work and efficiency,” they add.


As competitive advantages, the head office of this ensign dedicated to the sale of windows, doors and curtains highlights “a good margin on a valuable product, in addition material and business that do not need stock and the franchisee orders the material once it has been sold”.


This multinational, specialized in Mexican-inspired food, highlights as a competitive advantage the large number of units -about 6,500- distributed around the world, which makes Taco Bell the leader in this segment. In addition, the plant boasts the “operational simplicity of the format”.

At this time, the company is looking for a profile of a franchisee with previous experience “as entrepreneurs in the hotel or retail industry, interest in opening more than one restaurant and financial capacity to carry out the development”.


Franchising: a successful model for entrepreneurs

Franchisee errors

Bad choice from the beginning

The first mistake can come from the very moment of choosing the franchise, because the franchisee often lets himself be guided by the glamour of a firm, or because the salesman has overwhelmed him, explains Juan Manuel Gallástegui, franchise consultant

Moving away from the business model

When it comes to operating, the main mistake is when you try to deviate from the business model that constitutes the franchise. “If you follow the model you will be successful,” says Gallástegui.

Over-investing in the premises

It is the item that most often breaks the initial investment calculations. It is necessary to analyze well what each dollar invested is for, because it is the only item in which you can save in the first months.

Be quick to open up

Everyone wants to get their establishment up and running as soon as possible, especially if they have to pay rent every month it is closed. But it is better to wait until you have all the suppliers and the necessary training.

Remember, “the first week will determine whether the clients return or not”, says Claudio Nóvoa, head of franchises for the Spanish magazine Entrepreneurs.

Excess staff

“One of the mistakes is to believe everything the franchise tells you without waiting to do your own analysis,” says Nóvoa.

This blind confidence can lead the investor to incur unnecessary expenses, especially in the first year of life.

Scrimping on stock

It is very common that in the early days the franchisees tend to be prudent and austere in the acquisition of stocks, so it is important to be advised by the headquarters.

The client is different in each place

As in traditional trade, a model valid for one area is not guaranteed to be successful in another.

Franchise advice

The best franchise does not exist

For this reason it is important to make a self-evaluation that allows you to know how much money you have, what you like to do, third party where you want to operate; and if you are going to do it alone, with someone, or you are going to entrust it to a third party. “This way I discard what is not within my reach, my tastes, or territory where I operate”, lists the franchise expert, Juan Manuel Gallástegui.

Enter operational details

Not only go to ask and detail financial aspects, not only how much the franchise will cost, in terms of recovering your investment, or what the monthly return will be; “also ask what the technical assistance consists of, how I am going to be trained, how I am going to get the necessary inputs to operate the business… go a little further into the operational issues,” says Gallástegui.


Once you have made the above inquiries, you must make a decision, and to do so you must make a final investigation, find out how serious the company is, if it has not had problems with other franchisees.

How to do it?

Go to a specialized consultant, national trade or franchise entities; and/or make a couple of visits to other franchisees, to ask them how they have done, how the franchise has responded.

It can all be summed up as: investigate before investing.

Franchiser errors

Expansion at all costs

Some brands are very aggressive in attracting members, they only see growth, without considering the maintenance of the network as a goal.

The associate is not a number

The franchiser must see the associate as something more than a lever for growth and profitability. According to Claudio Nóvoa, head of franchises for the Spanish magazine “Entrepreneurs” is “the big mistake” at the beginning of the life of the franchises.

Excess of optimism

A very common mistake is to overestimate the perception of the brand in the market, and the reality is that it tends to have a much lower diffusion, compared to the idea of the managers.

Neglecting the operational side

Not designing specific operational processes for franchises is one of the biggest failures. Their internal management, compared to the companies’ own units, is different in terms of personnel, accounting, or finance.

Too soon

One of the sins is to franchise without knowing the business in depth, without having standardized it correctly and without evaluating costs, point out from entrepreneurs.

Not having a roadmap from the beginning. “This starts by being very clear about the reasons why one wants to franchise. Otherwise, the lurches and the failure.

Franchiser’s advice

Keeping control

Grow more slowly if the franchisee seeks to maintain control and pamper his brand, he will earn less money, grow more slowly, and work hard for the franchisees, even sometimes for free, just to make the business go well.

If he wants to make money above all, he will grow fast, he will grant the franchise to anyone and he will manage a gigantic network where everyone will do what he wants, resenting the brand, explains Claudio Nóvoa.

Is the chain solid and profitable over time?

To do so, it is necessary to study the existing market very well, evaluate what differentiates it from the rest, what added value it provides, and analyze the proposal very well.

You need to have differentiating elements in products, image and brand to enable clients to quickly grasp the concept and incorporate it into their daily lives. Not to be just another one.

They will not have your desire in the project

It is not the life project of the franchisees, they do not know him as the founder, so they will need good support, coordination and supervision in the network.

That the idea works anywhere

The franchiser must ensure that his idea can work both in one part of the country and in another part, not only where it is proving successful. Because not all of Central America is a commercial center of the capital city.