24 | JUN | 2019

Top 10 affordable franchises to invest in

Tania Casasola
Mexico City
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Franchises are the option of many who decide to run a business

Franchises are a business structure that has over 30 years in Mexico, and many are interested in investing in one, but there are a few things you should know before you make a decision.

How do franchises work?

A legal entity or individual – known as the franchisor – holding the rights to a brand allows another – the franchisee – to use said brand although for a limited and specified amount of time.

The franchisor provides the marketing and management plans, financial assistance, localization, training….the whole deal, and helps the franchisee establish its business.

Should I invest in a franchise?

According to Héctor Alcázar, from Grupo Alcázar & Co., experts on the subject, says it's a good idea to invest in a franchise since the brand is already known to the market.

That is, the brand has already been “out there” for a while and you don't have to start from scratch to promote your business.

Franchises or something else?

Alcázar explains during an interview that there are some models called business opportunities or micro-franchises. These also allow you to use the brand and give you pointers on location, size, advertisement, and more, similarly to a franchise structure.

However, one of the key differences is that some give you the opportunity to offer other products, which doesn't happen with franchises – where you have to follow quality and product standards and acquire your products with specific vendors and suppliers. That is, you have to follow the rules of the franchisor to a tee.

That is, if you set up a micro-franchise of donuts, you might also be able to sell coffee, sweets, bread, whatever, yet under a franchise contract, this wouldn't be possible.

“It's a matter of doing your research and not mixing up business opportunities with franchises; some advertise as franchises but they aren't.”

Am I a candidate to invest in a franchise?

Even though franchises have each their own profiles, those who are unable to adhere to a set of rules definitely don't have a good profile for running a franchise, claims Alcázar.

“If you like to innovate, propose, generate ideas, you might feel frustrated because the franchise structure doesn't allow to change the rules, you have to follow the model 100%.”

Now, if you have some money saved and you're still thinking on investing in a franchise, check out might want to check out the top ten of most affordable franchises and their total investment, according to Grupo Alcázar & Company:

Star Price (gifts and novelties) – MXN$290,000

Madacos (beverages and snacks) – MXN$ 308, 225

Arréglalo (clothes mending and shoe repairs) – MXN$ 350, 000

Quick Liss (beauty salons) – MXN$ 395, 000

Natur house (specialist care) – MXN$ 430,000

Ser Hogar System (human resources/security) – MXN$ 471,250

Yafah (hair removal centers) – MXN$ 481,953

Delichurros (coffee shop) - MXN$ 527,800

Beleki (bakery and cake shop) – from MXN$ 406,000 up to MXN$ 750,000



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