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.

OrdersIn

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

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.

Research

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.