FRANCHISE: WEALTH CREATION INSTRUMENT

The current world economic situation forces investors to become smarter in making investment decision. Fixed rate deposit has always been a safe instrument, however, with it�s low rate of return, investors need to re-think their decision to invest in fixed deposit. Apart from the mentioned instruments, franchise is considered to be an effective instrument for investment, as only with limited start-up capital, the venture can provide with continous earnings, providing it�s well operated. In spite of it�s growth in the recent years, precautions must be taken by investors before making investment decision in the franchise industry. Along with it�s share of successes, many also have failed in doing franchise business. In the midst of the many franchise ventures being offered, prudence becomes the deciding factor to avoid failures in the future. The first principle is to see an appropriate business suitable with the investors' profile then conduct a thorough research on business ventures in order to find a suitable fit between the business venture and the potential business player or investor. The research provides guidelines to select franchise ventures on their respective risk and return, before making investment decision