Since the franchise industry is fast becoming one of the top up and coming industries to date, it is important to get to know the industry and why it is becoming a force to be reckon with.
First, let us look at what a franchise is. I will not bomb this article with a lot of definitions that would not make sense to the layman so let me give just a rundown of the things that every potential franchise owner should know.
What is a franchise? A franchise is simply like buying something, passing it on as coming from the original owner with the owner’s consent and eventually getting some goodwill from the good name established by the original owner.
Imagine yourself wanting to create a service where you would rent out books. In this scenario, let us look at a library like a business.
So, you know that the Library is very popular and you want to capitalize on that. You have the same idea of renting out books but the Library is already established with clients coming in from all parts of the world. Now, you want to have your own Library in your hometown.
What do you do? You franchise a Library. You talk to the librarian and you get yourself a piece of the pie that they are getting. You get some customers that are already familiar with the way the system of the Library works, you get some newcomers that will get to know the Library based on your own perception and voila! You got yourself a successful franchise.
Now, think of the mobile repair franchise industry.
91% of Americans are attached to their phones while 89% of Canadians are also very dependent on the technology of their phones. With an annual industry revenue amounting to $4 Billion and an annual projected growth of 3.4%, entrepreneurs have created a way to capitalize on the human attachment to their phones.
Before, never would anybody imagine having to go through a repair center to get their phones fixed. Usually, people would rather buy a new phone than to wait for the old one to be repaired but that is no longer the case. Maybe it is the economy, or maybe it is the technology, but people are now more focused on retaining their mobile phones than getting a new one instantly.
However, getting in on the mobile repair franchise industry will not come cheap. If you want in, capital is necessary and not just monetary capital but equipment capital and human capital. The average capital requirements of most mobile repair franchises include the following:
- Initial franchise fee and a revolving franchise fee about the end of the first contract.
- Training fee for the technicians and the business owner himself.
- Minimum liquidity of the potential business owner to make way for projected overhead costs.
- A proper operational area for equipment.
These are just some of the things that a potential business owner should know about the mobile repair franchise industry. Do not be overwhelmed because the industry is growing for a reason.