At first, it's easy to see the requirement of a significant upfront investment as a bad thing for your next business venture. After all, why would you want to spend more than $200K to start your business when plenty of franchises are available for far less? As it turns out, there are some notable benefits to investing more at the start if you can make it work. Consider the following points as potential motivation to look into franchise options beyond the $200K mark.
Raise the Ceiling
When you invest more money to start your new business, you'll likely be entering a market with the potential for more significant rewards. In other words, investing in an affordable franchise with minimal upfront costs will typically put a ceiling on how much you can earn with that business. By going bigger from the start, the possibilities for what you could accomplish dramatically increase.
Access to Additional Support
One thing that your added investment may buy you is more robust support from the franchise itself. With more information available, and more access to people who can help answer questions and get you moving in the right direction, the entire process may be more enjoyable – and more successful. Of course, spending less on a franchise may mean that you are primarily on your own, and that isn't the experience that every franchisee is looking for when starting a business.
Buy the Brand Name
On this last point, it's simple: better brands can command a heftier price tag. If you want to work with one of the top brand names in your targeted industry, you'll need to spend more money to get started. Those franchises know the value they've developed in the form of a brand name, and they aren't going to allow just anyone to use that brand name without making a significant investment.
