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THE TRUE VALUE OF A FRANCHISE FEE

05.06.18

Quite often the million pound question when it comes to investing in a franchise is what do you actually get in return? The team at Platinum Property Partners explain exactly what is on offer when partnering with them

Joining any franchise requires a certain amount of capital investment to fund the development of your business as well as the upfront and on-going fees paid to the franchisor, which can often be significant.

Its' therefore critical to determine whether the franchise offers value for money, but that is easier said than done.

In many cases, you’ll hear such fees justified as a cost for gaining access to a proven system; licence to operate under a well-known brand and in a certain territory; and/or to cover the training and support provided.

All of that is, of course, true. Sometimes, however, it’s hard to convey that price is what you pay, and value is what you get, especially as much of the value offered by franchisors is intangible.

What value can a property franchise provide you with?

Owning assets has proven to be one of the most secure routes to wealth creation for decades, but take away the prospect of capital growth and the investment becomes much less appealing. This is why Platinum Property Partners came up with a specialist HMO property investment model that would ensure buy-to-let properties generated a significant income, combining the security of property with the certainty of franchising.

Turning a complex, yet highly rewarding, strategy into a simple step-by-step system that others could follow to create a net annual income of £50,000 to £150,000 per year. The value for money Platinum offer their franchisees, is in the vast amount of knowledge and experience within the sector.

The tangible benefits are:

  • Many franchisees liken joining Platinum Property Partners to paying an insurance premium or a secure fast-track to success.
  • Franchisees have also calculated that being part of the franchise has saved them thousands of pounds annually on the development and running of their property businesses.

Whatever franchise you’re considering, you always need to think about these two key factors – expected returns and how you will achieve these. Taking into account capital required and all associated costs of being a franchise partner, is the earning potential more attractive than if you were to start a similar business on your own?

What’s arguably more important though, is how much faster you’ll be able to achieve success and if some of the normal stresses and strains of starting a business will be somewhat alleviated by having someone there to support you.

Find out more about Platinum Property Partners by taking a look at their specialist property investment toolkit , it's a great place to start exploring more about this exclusive opportunity.

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