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Q.

Is a franchise whose service is seasonal a good investment?

Author: Brain Duckett

answered by Brain Duckett

Chairman of The Franchising Centre

What you should first be looking for is a business you can see yourself operating and which provides you with your desired income and an acceptable return on your investment.

You will discover the latter two by investigating the franchise in question, including asking for actual financial results from the franchisor and their existing franchisees’ operating outlets.

Then prepare a business plan, paying attention to the cash flow forecasts, as a few months income may have to last you all year. It may well then be possible that a seasonal business provides you with what you’re looking for.

Outside of franchising, let’s consider businesses such as amusement arcades and funfairs that operate in seaside towns. Often, the people who operate these businesses work hard and for long hours for, say, six months of the year. They may then have earned enough to take the other six months off, or at least not be open to the public while they prepare for next season by repairing and renewing their equipment. They could even operate a different seasonal business for the other half of the year.

So if operating a seasonal franchise, or even two separate seasonal franchises, gives you the lifestyle and income you want and such an arrangement is acceptable to both franchisors, it could indeed be a good investment.

Brian Duckett is chairman of The Franchising Centre, part of the world’s largest network of specialist franchise consultants.

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