Franchising – Advantages and Features

Published by slang October 19th, 2006 in Franchising

Some investors instead of investing in the conventional stock markets, bonds or real estates prefer to look into getting a franchising business that can act as cash cow to generate recurring cash-flows .

The following perhaps might be some reasons for sourcing a reputable franchise business rather than initiating one:

It is the fastest way of going into business;

this concept allow us with lack of capital to go into a decent business with systematic operations and a proven track record;

franchising offers less business risk to entrepreneurs or franchisees rather than venturing into business on their own;

the franchising concept offers people to look at self-employment and embark on entrepreneurship skills.

As for our local Malaysian scene, we can only see a few of the more successful franchisees such as:

Starbucks;
Nineteen O One Sdn Bhd, which serves American-style hot dog, [ Perbadanan Nasional Bhd (PNS) bought 40 per cent equity in the company to expand it further in the outside market.]
McDonalds and
7 Eleven

However, compared to the international scene, we see multitudes of franchisee business like the the top-ranked franchises such Subway, Curves, The UPS Store, Jani-King and Jackson Hewitt Tax Service. The diversity of these businesses — sandwiches, weight-loss centres, postal services, commercial cleaning and tax preparation services respectively —reinforces the typically wide choices available for
the budding franchisee.

Extracted from www.entrepreneur.com, sorted under Top

GLOBAL, Home-based, Fastest growing and Low Cost the following are top 30 awards for 2006:

Rank in 2006	Franchise Name & Description	Startup Costs (USD)
1	Subway Submarine sandwiches & salads	$72K-223K
2	Quiznos Sub Submarine sandwiches, soups, salads	$71.7K-251.1K
3	Curves Women’s fitness & weight-loss centers	$31.4K-53.5K
4	UPS Store, The Postal, business & communications services	$153.95K-266.8K
5	Jackson Hewitt Tax Service Tax preparation services	$49.8K-94K
6	Dunkin’ Donuts Donuts & baked goods	$179K-1.6M
7	Jani-King Commercial cleaning	$11.3K-34.1K+
8	RE/MAX Int’l. Inc. Real estate	$25K-199K
9	7-Eleven Inc Convenience store	Varies
10	Liberty Tax Service Income-tax preparation services	$43.8K-54.9K
11	Domino’s Pizza LLC Pizza, breadsticks, buffalo wings	$141.4K-415.1K
12	Pizza Hut Inc. Pizza	$1.1M-1.7M
13	Sonic Drive In Restaurants Drive-in restaurant	$710K-2.3M
14	Century 21 Real Estate LLC Real estate	$11.8K-522.8K
15	Jan-Pro Franchising Int’l. Inc Commercial cleaning	$3.3K-49.9K
16	McDonald’s Hamburgers, chicken, salads	$506K-1.6M
17	ServiceMaster Clean Comm’l./residential cleaning & disaster restoration	$26K-109.2K
18	Kumon Math & Reading Centers Supplemental education	$15.2K-37.8K
19	Coldwell Banker Real Estate Corp. Real estate	$23.5K-490.5K
20	Jiffy Lube Int’l. Inc. Fast oil change	$214K-273K
21	Arby’s Roast beef sandwiches, chicken, wraps, salads	$336.5K-2.43M
22	Baskin-Robbins USA Co. Ice cream, frozen yogurt, frozen beverages	$135K-522K
23	KFC Corp. Chicken	$1.1M-1.7M
24	Cold Stone Creamery Ice cream, frozen yogurt, Italian sorbet	$294.3K-438.9K
25	Jazzercise Inc. Dance/exercise classes	$3K-33.1K
26	GNC Franchising Inc. Vitamin & nutrition stores	$132.7K-182K
27	Chem-Dry Carpet Drapery & Upholstery Cleaning Carpet, drapery & upholstery cleaning	$24.6K-203.6K
28	CleanNet USA Inc. Commercial office cleaning	$3.9K-35.5K
29	Papa John’s Int’l. Inc. Pizza	$250K
30	Dairy Queen Soft-serve dairy products & sandwiches	$655K-1.3M

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