Today everyone who wants to make extra money as an investor in a small business looks first at a franchise business. Of course, there are thousands of businesses an investor can look into, but franchises are hot. A franchise business can be had for a small investment of 25K to 500K. We are talking about Franserve to McDonald’s.
Franchise Range and Cost
There are 153K convenience stores in the U.S.A. What franchise will you choose? A medium franchise of a Seven Eleven store will run around 100K. Having a convenience store franchise is one thing, but having all the equipment and the costs of maintenance. For example, just putting a Three Door Commercial Display Cooler will cost between 3-4K. If you have several coolers in your store for more merchandise will cost as much as a small franchise in itself.
The next step after a businessman decides on the kind of convenience store will be to make a checklist of all the licenses, permissions, certificates, inspections, and clearances he’ll need in order to bring his business dream a reality. Opening a small convenience store business requires the effort and coordination of hundreds of people and outside labor in order to meet a strict deadline for opening day. Of course, if the businessman has enough money he can hire a sub-contractor who can take care of almost everything. There are people who are in business to help others expand their businesses.
There are people who just deliver goods, while others make and deliver furniture and business equipment for your franchise business. Whatever convenience store business you decide upon you’ll surely in touch with the franchise owner and manager in all aspects of building your store. When ordering equipment or any merchandise you decide upon you will need to double check with the franchise managers since some franchises place in their legal contract what can and cannot be used in a franchise store; otherwise, you will run the risk of breaking your contract with the company. Furthermore, if some part of the contract is broken franchises will sometimes charge the franchise owner for the breach. Legal contracts will normally state fines in detail and in full. If there is any doubt a quick call to the franchise administrators will help to answer doubts in order to avoid heavy fines for you and your employees.
Once the franchise administrator checks off on all the merchandise you have for your convenience store business, then you can relax that you have made it past the initial stages. Things can go wrong after the initial stages that can make franchise ownership a living landmine. Recently a friend opened a well-known franchise for tacos, but in the middle of building the franchise, his backers ran out of money. The half-built store is still standing where it was begun. Also, the employees whom you hired for opening day may not be there next week when you need them since the turnover is high in many convenience store operations. Lastly, the economy is something that no serious business person can let out of his sights. Having people who can help you forecast the economic turns both before you open and afterward can go a long way to keeping yourself in business.