The Many Benefits of Owning A Franchise
In our last post, we looked at what franchising is, what kind of businesses are commonly franchised, and why it can be a better choice for individuals pursuing business ownership. Let’s dig a little deeper now and look at some of the benefits that come with franchise ownership.
5 Benefits of Franchise Ownership
Proven Model, Minimal Risk
As we discussed above, a franchise offers you a proven business model that has been tried and tested over many years. Remember very few franchises start from scratch. Most are small businesses that have been successful over many years, and have transitioned into a franchise model.
Having an established business model to follow reduces uncertainty and minimizes the risk business owners take when they go it alone. Franchise owners are part of a network of other business owners who can help provide guidance and insight, sharing their own experiences from the start-up phase and helping new owners to get a running head start.
Brand Recognition & Customer Trust
One of the hardest parts of starting a new business on your own is getting customers to take a chance on you. This is especially true in the personal and home service industries, where people must be able to trust that yours is a reputable and trustworthy business.
With a regional or national franchise brand, your potential customers will already be familiar with the brand name and reputation. Becoming one of your first customers won’t feel risky because they already know what to expect. Additionally, franchisors typically run extensive advertising campaigns that your new location will benefit from.
Training & Support
Two of the most important things a franchisor does for their franchisees are to offer initial training and ongoing support. The initial training will help you to understand how the brand does business, its values, how operational systems work, financial management, marketing and sales processes, what to expect over the long term, and so much more.
As you transition into an established location, you’ll not be left alone to figure things out. Business ownership comes with a near-endless list of questions and new concerns. Franchise ownership comes with a supportive franchisor who can:
Help determine the best course of action when questions arise
Provide guidance regarding operational concerns
Offer regular training on new policies, products, or regulations
Host group discussions for franchise owners to share experiences
The general support a franchisor provides means you won’t be left out in the cold when questions come up.
Established Business Operations
Making a list of all the items needed to get a company up and running can be one of the most intimidating parts of starting a business. Many franchise brands offer turn-key business opportunities that come with everything a new franchisee needs to open their doors. From an established store footprint to all the supplies and products needed for a grand opening to ongoing advertising plans, it’s all there, ready for you to get started.
Additionally, franchise groups can take advantage of the power of bulk purchasing and large group negotiations. The more franchisees there are, the lower the cost of goods and services can be. Additionally, you won’t have to be the one to take part in these negotiations. Your franchisor will take care of all of that so you can focus on running your location.
Growth Opportunities
Believe it or not franchises offer some of the best growth opportunities in the business environment. You can buy into the brand with one location, and as you get yourself established, add on more locations building your individual empire within the larger brand structure. Multi-location franchise ownership is a popular and common avenue for growth.
One of the ways franchisors encourage growth is by providing franchisees with exclusive territories. As part of the franchise agreement, owners purchase rights to a certain geographic area where only they can market their services. Without having to fight other owners in the same franchise for the consumer’s attention, it’s easier for franchisees to succeed.
These are just a few of the many ways that franchise ownership is superior to starting a business on your own. Understanding the benefits of franchising makes it possible to get into business faster - all you have to do is find the right franchisor to fit your goals and objectives!
