In considering whether a franchise or franchise opportunity is the right business decision it is worth considering just how the franchise market is layed out. Here in the UK the idea of a franchise for sale somehow has less kudos than an opportunity to invest in a privately owned business.

There is a level of sophistication in the Low Cost Franchise market that normally is not understood. A couple of hours investigating the variety of business opportunities available confirms that the market is segmented into a number of different offers. In a sector that is supposedly worth ten billion pounds and employs 360,000 the complexity should not be miscalculated.

At the top of the market the bigger well know high street brands such as McDonalds (probably the most well known franchise operation) offer an particularly successful business model and brand. A Franchise Opportunity with these kinds of market leaders is not for the faint hearted, a major personal investment will be needed, extensive training and exposure to the companies established brand and behaviours are obligatory. In return for the significant financial and professional commitment the business model is rock solid and the business and marketing plans should be well recognised and easily implemented.

Of course with such a heavy investment and quite low risk, returns are likely to be lower than other opportunities.

The second level offers less investment, the prospect to be flexible within the clear product or service and usually lower investment. These opportunities are unlikely to be well know high street brands but may make up the secondary pitches in the central business district or even we see some internet companies falling into this class. As with the top category there will be an established brand and scheme to be adopted but there may be opportunity for a little “self–expression” as the profile of the company is likely to be lower and the market may well be regional in nature. Franchises such as Monkey Music and 0800 Handyman would fall into this class, they are very successful franchises in their own rights but not hugely visible on the high street.

The final class is that of start-up franchises which offer the potential entrepreneur the opportunity to get in at the ground floor. These business ideas when offered as a Franchise For Sale are the innovative ideas that do carry a higher level of risk, in that the sales proposal, and even the management of the holding company may be not yet fully developed. The infrastructure will be in place of course but the firms are likely to be quite new. Depending on the franchisee’s stance to business these cheaper opportunities may well be the most attractive as they do allow for a degree of development and flexibility, some will even openly encourage the brand development from within the membership. If you’re looking for an opportunity to mold the franchise then getting in at the cheaper end of the market may well be a good choice.

In essence the franchise market is many layered, complex and offers a number of opportunities dependant on the investors available investment, attitude to risk and medium to long term goals.