Franchising has not been a popular route to business ownership in the Caribbean largely because of the significant capital outlay needed to acquire a franchise. A franchise differs from other types of business opportunities insofar as it offers the entrepreneur/investor:-
(a) A branded business. Most franchisors are licensing a business that is known and recognized. The value (and therefore cost of the franchise) is often directly related to the franchise’s market recognition and share. The investor/entrepreneur will have to spend less time and effort on promotion and marketing of the business.
(b) A working (and successful) operating model- Franchises comes with their operating systems and guides. There is no need to reinvent the wheel. In fact the investor can’t reinvent the wheel or tinker with it too much as the franchise agreement will stipulate adherence to the common system.
(c) Ongoing business support – Investors can expect ongoing training support and direction from franchisors as part of the franchise package and in return for royalties paid to the franchisor during the life of the franchise.
Whilst franchise acquisition is not for everyone and success with a franchise will depend a lot on the suitability of the franchise to the investor’s home markets, Caribbean investors and entrepreneurs should give it a little more of a twirl. By partnering and pooling resources, investors can make franchise acquisition more affordable.
Check out franchise opportunities available to Caribbean investors and entrepreneurs here.