Franchise Investments

Written by Johnny Kitchens
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Opening a franchise is often a very attractive option for someone who wants to start a business but does not want to go through the process of building brand recognition and developing marketing strategies and materials. A franchise comes with the brand recognition and marketing strategies of the franchiser. Most people think of fast food when they think of franchises but that is only a piece of the franchise pie.

It has been estimated that for every hour that passes, three or four new franchises will have opened their doors somewhere in the United States. A franchise takes some of the risk out of starting a business by partnering with an already successful operation. It also takes much of the freedom out of starting a business. The franchiser often dictates how franchise operations are to be handled and the fate of the franchise is tied to the fate of the brand as a whole.

It is possible to start a business with funds from your IRA by opening a franchise. The funds for the start-up fee and any other fees charged by the franchiser would have to come out of the IRA, however. Also, all of the profits would have to flow back into the IRA. If your IRA has enough free funds to cover such transactions (and all the expenses incurred during the course of business), a franchise business can be a relatively safe bet.

The Importance of a Good IRA Advisor

When getting involved in more complex investments, like opening franchises or purchasing real estate, the worth of a good IRA advisor increases exponentially. The majority of financial consultants and advisors have dozens of ways of picking hot stocks and mutual funds but are at a loss to explain the protocols for flipping real estate within an IRA. Whatever advisor you choose must be in line with your investing style or you are inviting trouble.


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