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Investment are of2 types (one as direct cost & second indirect investment ) :
Direct Costs :
1. Buying the Product / services ;
2. Infrastructure/ set up to be made for selling that product / services ;
3. Royalty / Profit to be given to the supplier per product sales ;
4. Manpower/ Service Cost to be added by the franchisee to sell the product ;
5. Area : Rental / Investment of place to be included as a franchisee cost .
Indirect Costs :
i. Training to sell that product / service ;
ii. Risk factor Cost - Investment / Direct Expenses -all is a risk to franchisee ;
iii. Interest On total Investment .
Virtually , its no win situation for a franchisee-except he /she earns fruitful investment - confirmed realization from that product after some waiting time - its a less risk proposition because brand building / positioning is the parent companies angle . A person just has to see & weight between the Interest & Time put in to realization by being a franchiser. He/ She becomes - a small entrep. but he/she has nothing to say , because its not your baby / business . You are just a care taker .
So, investment will depend on the factors stated above : Product / Place / Industry norms & linked expenses . It can never be generalized .
Investment requirements differ tremendously. It all depends on the industry and the type of business. You must discuss the inital fees and opening costs with individual companies, although IFA's Franchise Opportunities Guide can supply general information.
It totally depends on many factors of which some of them are as follows:
1. Product
2. Territory
3. Reputation of the Franchisor
4. Size of the Business set up
The investment by the franchise in large industries such as oil, cars and drugs, as they are in the productive and service sectors, small and medium Kalmokulat and beverages, hygiene and Aalkhaddmat educational and travel, transport and maintenance.
