3 Essential Reasons Why Tech Franchises Continue to Grow
In spite of all the economic challenges business owners have gone through in recent years, tech franchises continue to grow. Hard numbers can be difficult to come by, but it’s likely that they’ve outpaced the market in general. Anyone interested in getting into this dynamic field should take a look at these three reasons why tech franchises will probably continue to grow for the foreseeable future regardless of what sort of external factors start to shape the market.
1. Low Startup Risk
Computer and technology startups tend to either succeed or fail spectacularly. Nothing ever seems to simply enjoy a moderate amount of success in that space. New companies either go bankrupt or make billionaires out of their founders seemingly overnight. This is a very dangerous game to play, and it’s not something that most investors would ever want to try in spite of all the attention paid to it by mainstream media outlets.
By their very nature, franchise agreements take some of the risk away from business owners who are signing up for them. These documents normally come with a proven business plan. Say you were opening up a fast food restaurant and became a franchise operator for one of the major national chains. You’d be given a business formula that’s a proven winner in hundreds of other locations. Tech franchises work the same way, with the added bonus of being in an industry that certainly seems like it’s ready to continue growing for many years to come.
2. Large Potential Market Size
Small business owners who take advantage of tech industry franchise opportunities are gaining access to untapped customers. That’s because the tech space as a whole doesn’t have finite limitations placed on it. Most people only need one or two motor vehicles. They’re going to be rather reluctant to purchase additional real estate as well, unless they’re in the market for a vacation home or an investment property. Innovative technology products are coming out all of the time, however, and these solve real problems that people have in their daily lives. As a result, there’s really no hard cap on the number of different devices an individual may purchase. Business owners can capitalize on this fact by working with a solid franchise.
3. Comparatively Low Costs
The only real added expense for franchisees comes in the form of a payment they have to make on an annual basis to continue to operate the franchise they’ve signed up for. Regular royalties are somewhere between 4.6-12.5% for more franchises, so the price of running a franchise is relatively reasonable. This makes them much less expensive than many other types of arrangements. If you were to become a distributor for a larger firm, then you might have to invest in a large physical plant that could end up becoming ridiculously expensive over time. When you work with an existing franchise, you’ll be able to figure out most of your expenses beforehand so there shouldn’t be any surprises at a later date.
As technology advances more with each passing day, it’s obvious that tech franchises will continue to grow for years to come.
