How & Why franchises are good to invest?| Here are the most useful tips
May 24, 2016 | Other | Comments Off on How & Why franchises are good to invest?| Here are the most useful tips
If we make an assessment of the growth of this type of business 2001 -2011, the results are very good. Those who are wondering what the best franchises can see these data as good evidence that franchises are a type of company that can have great benefits and then identify the sectors recorded in a better performance. In general, the number of existing franchises in the Latin American market grew 50%, increasing to more than 47,090 units during this period.
In relation to the amounts of the networks present in countries like Mexico, they rose from 600 to 2031, an increase of over 200%.
With this kind of growth is natural for franchise sales have also surpassed the 25 billion dollars which is an impressive figure. This brief summary of the overall growth of the franchise in Latin America shows that this business represents enormous advantages for everyone involved, the franchise, the franchisor and even the country’s economy.
It has been shown that franchises are a good form of investment, now the big question is what are the best franchises on the market? One of the indicators most important that can answer this question is to know what sectors of activity were won over. In 2012, for example, the sector of activity which had the highest turnover, with a value of 24.048 million dollars were commercial services. The second best was the food sector, worth 17.499 million dollars. As the largest percentage revenue growth between 2011 and 2012, should be mentioned as leading business hotel and tourism with 85.8%, followed the sector of furniture, decoration and gifts, with a growth of 35%.
This remarkable growth sector Hospitality and Tourism is justified by the fact that Latin American investors have realized the potential of activity in this sector, when developed in the franchise system.
Brazil is another country that has had success with franchises especially in the aspect tourism where it has a large annual influx of tourists and most of those seeking international chains who already know their country of origin . So this is an industry where you can find some of the best franchises to invest. However, while it is an industry that represents a certain risk, especially in regions that are affected by seasonality and also requires a large sum of investment.
To find the best franchises with minimum must risk primarily search a company that matches the region in which you intend to develop the activity. The statistical data can be a good indicator and give some help but if you want to implement a franchise in a region inside that has a constant flow tourists, and want to invest in Hotels and Tourism, surely that will not be a good choice.
Once you find a business area that suits the region must make a thorough market research in order to know what customers want. It is vital that you pay one kind of product or service that customers want and are willing to pay for it. Only then can reduce the risk of rejection by the customer.
For all these reasons, the best franchises with a reduced risk largely depend on the region and type of target customer. Investigate all you can about what the best yet, here are some examples.
The best franchises with more presence in Latin America.
The franchise with a greater presence in our countries are McDonald’s, with more than 3,300 units operating at full steam followed by Burger King, and others. As you can also see the most important industrial sectors are very different. In order to be able selecting the best franchise without taking a high risk you should go and inform various conventions, fairs and seminars are held with the theme of franchising, and search among those that adapt to the reality of the region in which you want analyze and implement case-by-case.
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