Assessing the Risks of Franchise Investments

Every business venture has its own risks and rewards, and franchise investments are no different. However, it is fair to say that the risk factors are significantly lower than owning a business or starting a venture from scratch. You don’t have to get investors, build a business plan, and establish a customer base. Franchises have a tried and tested business model and regulations that you only have to execute to be successful. No wonder people with an entrepreneurial mindset are eager to buy franchises in the USA . In 2022, there were approximately 790,500 franchise establishments in the US, according to Statista. (Source: https://www.statista.com/statistics/190313/estimated-number-of-us-franchise-establishments-since-2007/ It is expected that in 2023 franchising will create 254,000 jobs reaching a valuation of $8.7 million. However, if you are interested in buying a franchise in the US, there are a few risk and reward factors you must consider. Let’s take a...