Starting a business often comes with a lot of surprises and hurdles, Owning a franchise is a perfect way for tackling the hurdles since it’s already proved as a successful business model
Franchisees purchase brand rights from a franchisor, and franchisor giving them the following privileges.
- Becoming boss with minimal learning
- No prior experience is necessary.
- Well-built business practices and built-in assistance.
- Immediate recognition with the established customer base.
- Minimal risk for failure.
Becoming Boss with Minimal Learning
It is evident in this corporate world, that the ample of individual life span is needed for anyone to become the boss.
No Experience is Necessary
Franchisees come from all sorts of backgrounds and industries. They can run their own business and be their own boss with the added benefit of a knowledgeable, established organization behind them.
Just imagine making your own schedule, deciding when and where you work and who works with or for you. The business already exists; you just have to run it.
Built-In Business Practices & Assistance
A franchise provides support and an established product, giving franchisees an edge in the business world. They’re not starting from ground level. They’re selling a proven service with high standards mandated in their franchise agreement.
The support franchises often provide before a launch might include training, planning the grand opening or finding a brick-and-mortar location, if necessary. And that support extends through the relationship, with services like marketing, advertising, operations and ongoing training.
Brand Recognition & Customer Base
Franchises don’t have to start from scratch. They have the benefit of brand recognition, and customers are already familiar with their business.
Consumers already know what they’re getting with a franchise, so franchisees are met with a loyalty base to start making a profit on day one.
Franchisors are well-connected with suppliers and vendors. Products and materials will be less expensive when bought in bulk and distributed to franchisees.
Lower Risk & Failure Rate
Financing will be easier with a less risky company. Franchisees are joining a brand already in progress. They’re skipping the startup and getting a ton of support, which makes for a more reliable investment.
Even better, the U.S. Small Business Administration offers loans specifically for franchises. Check the SBA directory for a list of fundable franchises.
While franchises provide support, franchisees are on the hook for costs relating to startup, accounting and payroll and other local business functions. This allows the larger franchise organization to function on a more streamlined basis. As a result, the organization can be more profitable and continue to grow with new franchisees.
The Bottom Line
Franchisors depend on their owners to uphold their brand’s high standards, and they provide a lot of support to make sure that happens. The franchising system is a well-oiled machine with myriad benefits for everyone involved.