Franchises Are Popular for Business in Alberta
Category : Blog
Many people who want to find ways to get into the business world in Alberta can consider getting franchises. A franchise is a branch of an established and popular business entity. This means that someone can start up a business location in a certain space and use the same standards that other locations around Canada might use.
For instance, a person can get a McDonald’s location to open up in a particular part of Alberta. That person can operate with the same materials, rules and standards that all McDonald’s locations have to offer. A manager can even offer special deals and individual features if that location is independently owned and operated.
In this case, the franchise can cost tens or hundreds of thousands of dollars to start up. However, a franchise location will get to retain a good portion of the profits while the parent company takes in the rest.
How Much Do You Need?
You might have to spend at least $200,000 on a franchise for most commonplace franchises. The McDonald’s example listed above would require an initial investment of about $300,000. This can be a very large total due to the need to build a site, get the materials ready and train all of the people who are going to be working at this location. This will result in a good amount of effort but it may be worthwhile if it is managed as well as possible.
In some cases the inventory might have to be covered in the initial investment. For instance, a Canadian Tire franchise will require an investment of $125,000 and about a quarter of the value of the inventory that will come into the location.
What Popular Options Are There?
While there are many different international franchises that are worth exploring with many of them coming from American companies, Canadian companies continue to be the hottest options to explore when finding franchise options. Tim Hortons is clearly the standard-bearer with regards to franchising as there are thousands of locations in all parts of Canada. Second Cup, Sports Chek, Canadian Tire, Home Hardware and Harvey’s have also been noteworthy franchise options for all Canadians to consider.
What Freedom Is There?
There is a potential for some franchises to have a little more freedom than others. While franchises typically have to abide by the national movements that different chains are looking to run with, some individual locations may also add a few things to go with it. For instance, a Tim Hortons location can participate in the same nationwide contests that the place has but also offer local specials like a specific discount on certain products at certain times of the week. This can be done as a means of bringing in a little more business to one specific part of the company.
The development of franchises is very interesting for all to explore. People in Alberta who want to start their own franchise locations will clearly have to pay quite a bit of money just to get their franchises to start up but it will all be worthwhile when they get these places ready.