Will be a right time to invest in Franchise

Till 2008 maximum foreign investment was coming from franchise that people of world used to take and outsourcing. It provided opportunity for the foreign investors and companies to invest and rule in the market but because of recession maximum number of companies have stopped their trade with other countries and foreign investors are withdrawing their money from there places where they had invested to make profit.

Now the question arises in front of us that still investment in franchise will be profitable or loss deal.
I am putting some of my views here

Lifecycle of an franchise

Franchise is an exiting opportunity for the people who wants to start small business or who want to come in Business world as it is workable business its plans and strategy have been working somewhere and it is well settled so the risk factor is also quite less which is the right strategy and thinking at this time of recession.

Information and Research

At this time business investor has carefully deliberated on pros and cons of being franchisee as it is good decision to rely on the defined system rather than new one .As new system and strategy must have something creative or different way has to be there to survive in he market of this time.

Expansion

As if the person gets a taste of success in the franchisee business the profit the person made from first franchisee they can invest that profit for multi unit franchisee and can expand their system without much investment and following the real system of business to invest your profit for expansion but if the franchise fails than still franchisee will not be in big loss as compared if person starts a new business and it crashes than whole investment will be lost

Emerging Franchisor

They are having new franchising concepts which have proven ,viable business model wilth well defined structure of the transferability of idea to the enterpreneur working with these emerging franchisor. It will be benefical as they are having new concept and we can make good margin in profit only if their strategy works and it is quite risky from investor point of view

Emerged Franchisor

They offer a produst or service that is perfectly tested and tried ,refined and sold over a period of time and these established franchisor represents the least risk type of franchisee opppurtunity but on the dowturn everyone know their startegy and the opputunity for franchisee may be less as market is saturated

Whatever type of franchise person invest on he/she must gather the full information about the franchise to be taken but it is a right time to invest because in other markets investment is going down regularly and it is a much informed decision ,avoiding costly mistakes ,folllowing best practise and right at this time of recession

Best of Luck Investors