Although franchises are turn-key business models, meaning one does not have to start from scratch, there are still three factors that need to be considered when investing in a small franchise.
First and foremost, is your commitment to manage the small franchise. I have a lot of friends who tried this while keeping a full time job and found themselves burnt out at the end of the day.
The second factor is the product or service offering. This area is less of a concern since the franchise already got you covered on this one.
The third factor that you need to consider is the viability of the market. Here, location is key. Are you at the right place so that you make your product or service available to your target market?
If your answer is on the affirmative on all three factors, then yes, you can use your extra money in a small franchise. Otherwise, it is best to invest somewhere else.
