There are several ways, and knowing them may well be your only protection against falling victim to one.
Franchising has made great inroads in the Philippines because of the increasing number of people succeeding in business through this route.
But franchising has a downside: it has given rise to scams.
Franchise scams have indeed been on the upswing, but it hasn’t reached crisis proportions as it had in the United States in the 70s – considered the franchising “dark ages” – when countless individuals were duped into investing in non-existent franchises.
If you’re looking for the safest way to expand or diversify a business, it’s franchising.
Franchises are one of the fastest-growing types of businesses in the U.S. and can be purchased for as little as a few thousand dollars, to over a million dollars. There are franchises for all kinds of products and services—food, pet grooming, massage services, auto repair, etc. Although exact statistics are hard to find, they also tend to have a higher success rate than independent businesses that are not franchises.
When it comes to expanding your business overseas, franchising has become the Modus Operandi of the day. In Singapore, many businesses including restaurants, café chains and fashion chains have shown interest in and considered setting up overseas franchises. It makes sense financially for them in the sense that the franchisor (the business owner that grants the franchise) can charge an initial fee to the overseas franchisee (the person who takes the franchise). Franchising in effect provides an almost cost-free expansion since the original business receives royalties and a constant stream of income from the franchise. But there are pitfalls to avoid. Franchising may not be suitable for all businesses and an overseas operation can fail for a number of reasons.
Have you always wanted to go into business for yourself? If so, it’s possible that you’ve considered whether buying a business franchise is the right choice for you. Starting a business in any field is a significant life and professional decision, and, as with any major decision, it is important to weigh all of the pros and cons before taking the leap into a business franchise opportunity.