There are many reasons why buying a franchise can be a sound investment for your hard-earned money.
Franchising can offer you a jump start to owning your own business where independent businesses often struggle in their first few years.
So if you’ve got plans to be the master of your destiny and become a business owner, here are ten reasons why you should go the franchising route.
1. Track record of success
Any good franchise company has developed a method of doing business that works well and produces successful results. Even better, they’re required to provide you with a great deal of information in their disclosures so you can investigate and verify the results with existing franchisees prior to making your final decision.
2. Strong brand
One of the biggest advantages of franchising is that the company is building a brand on a regional or national basis that should have value in the eyes of customers you’re trying to attract.
3. Training programmes
A good franchise company has training programmes designed to bring you up to speed on the most successful methods to run the business. They should also have reference materials to assist you in dealing with whatever comes up while you’re running your business.
4. Ongoing operational support
Franchise companies have staff dedicated to providing ongoing assistance to franchisees. You’re not alone when you’re building and running your business, and you can always call on experienced people when you hit a rough spot or want to share ideas for growing the business.
5. Marketing assistance
The franchise company has marketing assistance to provide you with proven tools and strategies for attracting and retaining customers. Usually, they help you develop the actual marketing plans and budgets for your grand opening as well as your ongoing efforts to effectively market your business.
6. Real estate assistance
Most franchises have documentation, criteria and staff to help you find the right site and negotiate the best possible lease. This is a very important advantage that can help keep costs in check and provide the best possible chance of success in a site-driven business.
7. Construction assistance
Franchise companies can also provide a wonderful benefit in helping you design the layout of the business and select the right contractors to do fitting, as well as making sure you get the exact mix of furniture and equipment you need to maximise the efficiency of your initial investment.
8. Purchasing power
A good franchise can take advantage of economy of scale to negotiate prices for everything you need at significantly lower levels than you could achieve as an independent operator. This applies not only to initial furniture and equipment purchases, but also to ongoing supplies, inventory, uniforms and everything else you’ll need.
9 &10. Risk avoidance
This one is so important that it counts twice! The biggest reason to buy a franchise is that, if you’re smart, it will help you avoid much of the risk of starting a new business. Make no mistake — you have to do your due diligence, but if you do, you can determine with a fair amount of certainty what happens if you become a new franchisee.
Looking at this list you’ll realise that franchising provides solutions to some of the major challenges you can experience as an independent business owner.
While you do have to pay fees in a franchise from the get go that you could avoid in an independent business, you can save yourself a lot of money and effort by being part of a group that learns the lessons of others that have gone before you.
Using a franchise to meet your goal of starting a new business is a wonderful approach for most people, for all these reasons and many more.