With rising interest rates and sky high prices making attractive real estate investments difficult to find, some investors are starting to think outside of the box. Seeking opportunities away from the traditional residential market is enabling ambitious investors to add to their portfolios during this period of market uncertainty.
Investing in franchising opportunities with successful and recognized brand names, especially in the restaurant sector, is proving to be particularly fruitful for Canadian investors. Offering established business models underpinned by long histories of strong financial results, investing in restaurant franchises is helping Canadians push their portfolio returns to another level.
“In North America, franchising is one of the biggest generators of wealth and has created many millionaires,” says Steve Drexler, President, St. Louis Franchise. “Starting with Tim Hortons and McDonalds, the model has proven to be a sustainable long-term model for success. It gives entrepreneurial people the chance to invest in and grow a business. The marketplace is becoming more competitive, but partnering with a proven brand with a successful track record could be extremely lucrative for Canadian investors.”
Drexler believes the right franchising investment can provide Canadians with the opportunity to generate levels of income they might struggle to find elsewhere. Franchising might seem like an alien concept to many Canadians, but partnering with a well-established franchising company that offers training and guidance has the potential to take an investors’ income potential to a whole new level.
“If people start to feel that real estate is overvalued and they are not going to see the same rates of return from residential investments, they are going to have to find other ways to make their money work,” Drexler says. “Canadians cannot rely on the real estate market to keep on exponentially going up; not everything continues to rise straight up and there will be a correction. There has been a correction in the equity market and there will eventually be a correction in the residential market.”
Download this whitepaper to find out more about how Canadians are benefitting from franchise investments.