What Type Of Franchise Is The Best?
Are you looking to be a business owner with limited risk compared to blindly entering a new venture? That is the main value a franchise system offers to its franchisees. You can buy into a proven system and be in charge of your own thriving business! It comes included with ongoing support, a foundation of tools + training, and brand power + legitimacy! The question is what kind of franchise should you buy? There are franchises available in just about every industry, and most likely your perfect business is one you have never heard of yet. There are the fast food franchises that sell hamburgers and pizza, there are janitorial franchises, retail store franchises for hardware, vitamin/supplement retailers, gym franchises, oil change franchises, painting, handyman, screen repair, snow removal, and property management just to name a few. Looking at all these systems it becomes clear that the Nexus Property Management Franchise Opportunity is more attractive, with little capital required and much higher upside than most of all other franchises available.
Do you want fries with that?
If you ask a random person to name a franchise the most likely answer would be Mcdonalds. That’s for good reason! Since 1955 they have grown to over 37,000 franchises worldwide. The problem is that there are limited locations available and you will likely need $500,000 cash to even qualify! In addition to that it can cost over $2,000,000 to open your own! As you can guess Investing in a Burger King franchise is a similar situation with $500,000 cash required and a net worth of at least $1,500,000. With the cost of opening a Wendy’s franchise reaching highs of $3,600,000 it is pretty clear that the fast food franchise space is a mature segment that can now only be entered by the very rich. With the expensive startup costs, vast competition and limited revenue per location (you can only sell so many hamburgers in a given area), fast food franchises are an extremely expensive proposition with limited upside. Not to mention, staffing will be a nightmare for you. Your positions are entry level, likely pay minimum wage, and are most people’s first jobs! You are not providing a career to your employees, you are simply providing them with a paycheck. The loyalty between you and them will always remain ultra thin and subject to imploding at anytime. What happens if they get offered a job for $11 an hour? They probably will be putting in their 2 weeks notice; or maybe just leaving! Do you want to wake up with this fear everyday?
Ditch the products and perform a service?
The huge majority of products and food being distributed today are accomplished by technology dependent corporations + established franchises (with seven figures start up costs). The logical conclusion is to review service businesses that can have low start up costs and positive business environments in a local area because the truth is it becomes impossible to compete with companies like Amazon and eBay. They have logistics down to a science, and you cannot compete!
Home Repair, Handyman and Maintenance Franchises
There are many home-based franchises with very low minimum cash requirements. You can see in this list that most of them have a cash requirement around $50,000. There are painting businesses, appliance repair, floor refinishing, pest control, landscaping, snow removal and drain cleaning. Each one of these businesses could cost $50,000 or more. These are niche businesses that face competition and provide very specific services. Choosing any one of them would be a concentrated gamble vs a business with multiple revenue streams like a Nexus Property Management Franchise. A Nexus franchise offers you the ability to have a handyman, painting, cleaning, plumbing, electrical, leasing, purchasing, and eviction business (just to name a few) all in one. Incredible! Don’t forget, you are collecting the rents too so you never have to worry about hounding your clients for payment as you get to take your invoice costs from the rents you receive. Simple!
Best Franchise To Open Today.
A Nexus Property Management franchise is like dozens of businesses in one because the system provides the opportunity to offer all the individual services of other home repair, handyman or maintenance franchises without the increased risk. The diversified revenue streams create unlimited upside potential at a fraction of the cost of most franchise models with low start-up costs and easy scalability. As mentioned previously, staffing is an issue with businesses that provide high volume and low prices. With a Nexus franchise you get to offer your employees the opportunity to get paid for their performance, not for their time. So, for example, a technician would be paid based on how many work orders they complete in a week, not for how many hours they showed up. This leads to increased efficiency, motivation, and loyalty. Businesses have been trying to crack this nut for some time by offering perks like babysitting, gyms, bonuses, trips, fancy dinners, etc. While these are benefits to the employee they are finite in nature. When an employee wakes up everyday working for Nexus they are just as motivated as they were yesterday, and that requires no extra effort or money from you as the franchisee. Problem solved!
Property Management Franchise Benefits.
Property management is a diverse business that requires knowledge in a wide variety of areas and in most states requires a real estate license. This creates a business environment where competition is often very limited. With low start-up costs, multiple revenue streams, favorable business environment, and an easily scalable model. Our 1st franchisee ever had no experience at all, but with training, support, and hard work she has climbed to manage over 300 units in just 1 year. That could be you!
We would love to hear your feedback on this topic! Post a comment below so we can start a discussion!
Gregory Rice is the Vice President of franchise sales for Nexus Property Management™.
Nexus Property Management™ is a National Property Management Franchise that manages all types of rental property from single family homes or condos to large apartment buildings and complexes.
Your Property, MANAGED®
The Real Estate Investing Authority®
Connecting You To Better Living®
You Could Own A Nexus Property Management™ For Less Than You Think!