Investing in a franchise business as a second pillar

Investing in a franchise business as a second source of income

Successful business people who already run a business are increasingly interested in expanding their success by investing in a new business model on a broader basis. 

We spoke with Jan Saunier of Engel & Völkers on "Franchising as a second pillar". Engel & Völkers is one of the market leading franchise companies in real estate. January Saunier nationally is actively involved as an expansion manager in franchise sales and internationally based in Hamburg.

January Saunier shares his impressions of his daily work and explains why many business people choose to enter into a franchise. "I'm experiencing more and more that many entrepreneurs want to build a second pillar alongside an already successful company," says the expansion manager. The motives are, above all, that the entrepreneurs want to set up a financially wider platform or strive to build a business for the younger generation.

"Franchise can be a successful investment."

January Saunier stressed that the investment in a franchise company is requires intensive preparations. These franchises can be very successful if key parameters are considered in advance.At the beginning, the right franchise system must be found. There are more and more franchise systems in various industries, which an investor can choose from.To find the right franchise model, a detailed check of franchise systems should be carried out on various online portals. This is followed by a detailed site analysis. Because, according to Jan Saunier, some locations are either better or worse for the chosen franchise concept. January Saunier emphasized that lots of information can be researched online regarding the concepts. However he advises that one should deal with the search as early as possible and interact directly with the respective franchises. During these discussions, especially critical success factors should be discussed. At best, the location analysis should be carried along with the franchisor.

"Successfully growing within a franchise business."

In franchising, the essential requirement is that the investor builds on an already established concept and benefits from the experience and the existing system standards.In principle, it is possible to develop several pillars within a franchise concept. Most franchise companies find great importance in the fact that the franchisee is initially established as a successful partner, before he can make further investments within the network."

As an investor in a franchise concept, you should not be fundamentally involved in the operational business. "In this case, a successful implementation of the franchise concept depends on the right leadership," says Jan Saunier. A strong foundation of trust between investor and manager is therefore conducive. The manager must implement the structure of the franchise concept according to the specifications in order to establish it successfully on the local market. "