A franchise is an authorization given to a person or business to sell a business’s goods or services in a specific location for a specified period of time.

To receive a franchise, you must donate money to a reputable business to use their name, brand and trademark to operate a business.

A franchise allows you to own a business that is already profitable and appreciated under certain conditions.

Franchise Opportunities

Although there are local and international franchises for different companies, the most popular international franchises in Nigeria are the hospitality, food and restaurant industry franchises.

Local franchises exist in many industries such as petroleum, transportation, logistics, education, cinema, hospitals and restaurants.

The franchise market in Nigeria is reported to have an annual turnover of $ 100 billion. This translates to around 40 trillion naira per year. This is well above the 2022 national budget of 17 trillion naira. Foreign franchises are mainly of American, South African and European origin as the demand for international brands continues to grow.

Start a franchise business

To start a franchise, learn about the pros and cons of investing in a franchise

The benefits of getting a franchise include starting a business using a brand known across the country and having a track record of achievement.

You have the support of the franchisor, who will provide you with business advice, training and advertising to ensure your success.

While the downsides include the substantial cost of obtaining a franchise, other fees, hiring staff, the high cost of renting a store and purchasing equipment, inventory , obtaining business licenses and insurance.

Second, you need to choose a franchise that matches your skills and goals.

One of the best international franchise opportunities in Nigeria might be right for you. But think about your abilities and choose a franchise where your strengths outweigh your weaknesses.

Additionally, choose a business platform to integrate between an LLC or sole proprietorship.

If you start your franchise using a Limited Liability Company (LLC), you will enjoy legal, tax, and business benefits. For example, you are separated from your business and this separation protects your assets.

Likewise, you should research franchise opportunities and market conditions. Study your local environment to find out which businesses will thrive in that locality.

The initial capital

The initial capital of this company manages millions of naira ranging from 50 million naira to 500 million depending on the franchisor you choose. If you have collateral and meet other conditions set by the banks you want to apply for loans from, you can get a loan.

Cost of the franchise

If you are investing in a leading international franchise in Nigeria, be prepared to pay for it. For example, a fast food franchise is lucrative, but the barrier to entry is the high franchise fees you have to pay. They run into the millions of naira depending on the brand you choose.

The numbers are astounding for the average entrepreneur.