IF YOU ALREADY HAVE THE MONEY TO START, BUT YOU LACK THE BUSINESS IDEA, FRANCHISES CAN BE A GOOD IDEA OF INVESTMENT AND ENTREPRENEURSHIP. IN ADDITION, IN MEXICO WE HAVE MANY SUCCESSFUL FRANCHISE CASES TO CHOOSE FROM.
The franchises are one of the ways to undertake with less risk; For this reason, many entrepreneurs opt for the option of franchising. They are supposed to be companies that have proven their success in the market and what you get when acquiring one is the know how to reproduce it. That is to say: the learning curve and the cost of that learning through trial and error is significantly reduced.
In Mexico, we are among the top 10 countries in the world in the franchise market, according to the World Franchise Council. The sector has generated more than 900 thousand direct jobs, grows at a rate of 10% per year, adds more than 80 thousand points of sale, and has a balance of 85% Mexican and 15% foreign brands. In 2016, a point of sale per hour was opened.
According to the Mexican Franchise Association (AMF), 15 cents of each peso is destined to a franchise. In terms of success and survival, 90% of the franchises exceed five years . In contrast, traditional SMEs do not usually go beyond two years. All these numbers are due to the great appeal of this model: it offers a kind of shielding for entrepreneurs.
Yes, all this sounds tempting. So, if you’re already convincing the idea, here are the five most profitable franchises to invest in Mexico.
Share of the brand: $ 200,000
Fixed payments: $ 5,000 (for royalties and advertising)
La Churrería Porfirio is one of the franchises that is growing fastest in the country; In fact, this business delivered 30 branches in its first eight months of operation. This year, two new ones are opened each month, and the first one outside of the country, in Colombia. The initial investment in Mexico is 300 thousand pesos. With this you have access to the corporate Master Franchise, which handles other brands around the world. And the branch can be opened in less than three months.
According to Franchise Master , the company that carries this brand, in addition to the 200 thousand pesos of brand share, must pay another 100 thousand to adapt the premises and get the necessary equipment for the operation. According to data from the same company and from the Mexican Franchise Association, the return on investment is achieved between 12 and 18 months.
In addition, some of the benefits of investing in Churrería Porfirio are the architectural supervision of the premises, training and periodic training guaranteed and access to exclusive suppliers.
Share of the brand: approximately $ 200,000
Fixed payments: 8% for royalties and 4.5% for advertising
Currently, Subway is one of the largest fast food companies in the world, which has meant that in Mexico they have more than 100 franchised branches, and presence in more than 100 countries.
The way in which Subway has obtained franchisees is through its product; According to the company, almost 90% of its franchises belong to customers. And of these, almost 70% has reinvested in a new store.
In addition to the 200 thousand pesos of brand share, you must also make an investment that can reach almost 100 thousand dollars, almost two million pesos. In this case, the return on investment is achieved between two and five years. One of the biggest advantages of this business is the great brand recognition it has achieved, and that is part of the new trend of consuming a bit healthier food, something that other large fast food chains have not implemented.
Share of the brand: $ 325,000
Fixed payments: 6% for royalties and 1% for advertising
This company started operations in 1986, and from the beginning its commitment was clear: ice cream and healthy products and low in fat, something that they have maintained for more than thirty years. On your menu you will find things like smoothies, fruit juice, parfaits and the famous yogurt ice cream.
To get one of these franchises, the total investment is almost one and a half million pesos, and this already includes the brand quota to start the business. Yes, it’s a big investment, but it’s worth it to be part of one of the best 100 franchises worldwide. Here you can see a list of all the awards that this company has achieved, especially within the franchise scheme.
In our country, the contracts have a validity of seven years, and you need to ensure a space of at least 50 square meters for the first store model, or 100 meters for the second model. The return on investment is achieved between 18 and 24 months of operation.
Share of the brand: approximately $ 300,000
Fixed payments: from $ 15,000 to $ 25,000
Wing’s Army is a restaurant and bar of wings, one of the sectors within the food business that has grown the most in Mexico in recent years . This company has more than 140 stores in Mexico, and our country is one of those that has given more growth. In fact, in 2013 they were named the Best Food and Beverage Franchise by the Mexican Franchise Association. On the other hand, they have more than 100 brands of beer between national and imported, and some of their sauces have won awards in the country.
With these recognitions, it is not surprising that this is one of the franchises where more is required to invest. In addition to the 300 thousand pesos per brand quota, almost 2 million pesos are needed to have the premises equipped and in operation. According to the same company, the return on investment is achieved between 18 and 24 months of operation.
Farmacias del Ahorro
Brand share: approximately $ 350,000
Fixed payments: 3% for royalties and 1% for advertising
These pharmacies focused on generic drugs are among the few franchised businesses in Mexico that have achieved success outside the food and beverage sector. In fact, this company has more than 600 franchises in the country, and about 200 own sales points. And it is that Farmacias del Ahorro invests in the management development of its franchisees to ensure that the business works.
For example, once the investor is accepted, he must pass a six-week course at the Franchise Training Center and pass a management skills test. In addition to the basic supports, such as training assistance and local architecture, there are exclusive credits with suppliers.
To start with your pharmacy, the initial investment is approximately one million pesos, including 350 thousand of the brand fee. Finally, the return on investment is achieved between two and three years. It is true that they are no longer looking to exploit the franchise model, but they continue to receive proposals.
The Mazatlan Post