Investing In Franchises

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I know this is not an investment forum, but I searched for "franchise forum" on Google, and none of them had much recent activity. I am wondering if any of you here have invested in a franchise, and if so, what has your experience been?

I am currently a student, but I want to take a dive and invest in something. I have been thinking about either getting a real estate license (agent or broker), or trying my hand at a franchise operation. Any advice?

I've looked through lists and information on various franchises, their startup costs, requirements, etc. I am not really looking for advice on how to start it or what one to choose. I am wondering how you would compare it to other investing, such as real estate.

Also, if you have any links to forums where it would be better to discuss such a topic, I would appreciate it, thanks.
 

Docs

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*bump*, I want info too :)
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Naw, just wait until A-Unit sees this, he'll have a huge reply. Maybe backbreaker too...Str8up disappeared :(
 

SamePendo

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You should have changed the title to:

"Spending ass loads amount of money to pay for someone else's idea and make them richer, and get little money out of it: instead of investing into other riskier personal ventures that would put me more on the line, but I could get much more out of them, not just money, but experience and confidence."
 

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SamePendo said:
You should have changed the title to:

"Spending ass loads amount of money to pay for someone else's idea and make them richer, and get little money out of it: instead of investing into other riskier personal ventures that would put me more on the line, but I could get much more out of them, not just money, but experience and confidence."
You definitely have a valid point. I actually am starting an eBay consignment business in the meantime and another project as well. The eBay consignment thing I may be able to turn into a franchise eventually, sure. I partly agree with your logic.

However, buying a large franchise can be a safer investment. You would be working with a proven business plan / strategy, which is more viable when you're talking about a restaurant or department store. Not all franchises cost a lot. I was considering only investing up to $100k. Royalties vary, and you can hire someone to manage it for you; after a few years you use the profit to buy another, and another, and so on. My dream is to eventually have a diversified corporation that owns several franchises (in addition to real estate and other ventures).

It really depends on a variety of factors, but in a lot of ways buying a franchise is a lot smarter business decision.

Anyhow, I would still enjoy some advice from the members Docs mentioned.

Thanks.
 
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