You may not be aware there are different types of franchises that potential franchisees could look at when venturing into this field. For instance, you could look at either a mobile franchise or a fixed site, a full-time or part-time franchise. In this time of change and uncertainty, it’s wise to have a bird’s eye view on the purchasing or starting up of a franchise.
Let’s start off by looking at what different options available with mobile franchises. It is evident that the Covid-19 pandemic has brought much change, both to the economy and personal change in the lives of so many. As a result, more people are looking at different and more creative ways of earning an income. Mobile franchises have fast become a favourable option, given the ease of operation. There is a certain element of freedom with a mobile franchise that allows its owner to determine their own working hours and save costs at the same time.
What types of mobile franchises are there?
The mobile franchise business is growing in popularity and new brands are being born daily. There are a number of fields that have been rather successful, and a few are mentioned below:
- Window cleaning
- Car services eg. Tyre changing and car washing
- Mobile beauty salons
- The food industry, food trucks or delivery
The benefits of mobile franchises
Unlike the start-up costs for traditional brick-and-mortar type franchises, mobile franchises require much lower initial investments. These franchises also reduce monthly spending on leases and rents because you’re able to have an office at home. Because you’re technically running a business on wheels, servicing clients is simple – jump into your vehicle and meet your client at a prearranged location, be it their home or office. Life on the road is very appealing to many, and every day becomes a new adventure.
You get to manage your own brand. Another benefit is free advertising. With your company decals clearly and attractively displayed, your vehicle basically becomes a mobile billboard that’s likely to get people talking, so not only will you benefit from simply being seen, but with word of mouth being the fastest advertising, your reputation will definitely grow.
With your business being mobile, the number of staff you employ is entirely your decision. You can decide to run it as a one-person show, or employ staff on a casual basis, thereby cutting costs even further.
The potential downside to a mobile franchise lies purely in you being able to proactively source clients. Since you don’t have the benefit of foot traffic walking past a store, added effort must be put into creating something highly visible, and possibly employing techniques like cold calling.
Fixed or brick and mortar franchises
These are regular, walk-in buildings like stores, restaurants, kiosks, juice bars, and office blocks. Startup investments are much higher and come with the expense of buying the actual franchise, shop fittings, and rental leases or the purchase or building of a structure. Added to this is the employment of staff, with special consideration on location such as a mall.
The benefits of fixed-site franchises
Unlike a mobile franchise, having a fixed franchise gives you the benefit of walk-in clients, which means automatic sales leads. Franchises in larger malls give the advantage of even more feet walking by. People migrate towards brands that are familiar or popular, so the brand can easily sell itself.
Given the Covid pandemic in the last year, landlords have been more open to negotiations and reducing rental amounts, so it’s a little easier to get into those quick-service restaurants and kiosks. Although foot traffic has declined during the pandemic, there still is the option of online shopping and delivery, and of course, there are still many that prefer the option of in-store shopping.
What are part-time franchises?
Part-time franchises are not the regular 9-5 type businesses. These franchises basically operate on a needed basis. These businesses look for opportunities through events or even by offering services within stipulated time frames or on certain days.
Examples of part-time franchises
- Wellness and beauty franchises
- The food industry
Wellness and beauty franchises are among the most popular and fastest-growing part-time franchises right now.
The benefits of part-time franchises
Running costs are lower given that the business does not require staff employed on a permanent basis. There is flexibility in that you have the freedom to determine your workdays and times. There is also the option of running this as either a fixed site or a mobile franchise. This would be determined by the type of services you have on offer.
Starting up a franchise can cost anywhere from $25 000 to $1 000 000. There’s definitely some deep consideration and thought to be put into it before going all out. A little guideline is below:
- A typical franchise agreement runs for 5 years – commit to something that you can see through this period
- Decide on the type of franchise that you’d like
- Look at your financial position and affordability
- Do you want to employ staff or work alone?
- Do you have a proper support structure? Will your family need to get involved? What will the impact on your family be?
- Research and look at what the daily running will entail
- Look in depth at the possible returns on your investment
If it’s a start-up or your first business, you may want to start smaller and keep your costs to a minimum. You can also look at smaller franchises with lower risk that can help to gain experience in running a franchise and build equity, and thereafter move on to something bigger.
This could be the purchase of another branch of the brand (a multi-unit)or another completely different business. Many franchises started out small, as single units, gained an understanding of the business, and proceeded to buy up in the business, eventually running very successful franchises.
The Insider’s Guide
There is definitely a shortage of support for prospective franchisees, and we’ve seen this mainly in the early stages of franchising. The insider’s guide to buying a franchise collectively draws on over 30 years of experience in franchising, and understands this sector inside and out, from both the franchisees’ and franchisors’ perspectives.
We have experienced the struggles of starting up, and have used this as a learning curve for the benefit of others. We are incredibly passionate about educating people and making sure that people make informed decisions.
As a result, we are creating a 4-week course that will be presented live on Zoom. This will give prospective franchisees in-depth information and equip them with the tools necessary to make informed decisions.
Questions can be posted through the zoom call, or via our Facebook page. This is an opportunity to get on the inside, ask questions and get the answers that you need. The Insider’s guide is not selling anything. We want to afford people the understanding of franchising based on our experience, so that they are able to ask the right people the right questions, with honest answers. We help people to understand what they’re getting into.