In the US, there are nearly 750,000 franchises that employ approximately 8 million people. Entrepreneurs seeking to open a business of their own should consider a franchise. This is usually the best choice as there are several advantages to franchising that a start-up lacks– and those advantages alone are good reasons to consider a franchise when investing in a business. Below you will find nine reasons why you might want to invest in a franchise.
#1: A Recognizable Brand
It can be hard to tell how the community will recognize and accept your idea for a business. Franchised brands have already overcome this obstacle and all you will have to do is maintain it. Having a name, logo, and product people recognize means that your targeted customers are already aware of what you have to offer before you even open up your doors.
#2: National Advertising
Franchisors provide national advertising used to strengthen and support the brand. They conduct marketing research and create a consistent message that brings customers in your doors. The cost is shared amongst all franchise business owners using money collected from franchise fees.
#3: Instrumental Training
Having a business model that has been proven successful, franchisors provide training to their franchisees. Pre-opening and ongoing training are key to making the franchisee succeed with the company. This is also the best way to help ensure consistency for the franchisor’s brand.
#4: IT Support
You probably think you are tech-savvy, and you might be, but unless you are opening a technology service franchise, your time won’t be spent focusing on IT work. Instead, your focus will be on building your customer base. In most industries, franchisor systems offer technical support, established POS systems, and integrated technology used to streamline back-office tasks to their service center. This keeps you focused on the brand and product instead of spending your days fixing computers and selecting payment systems.
#5: Less Expensive
Franchisors get bulk discounts that small start-up businesses do not. This means that the supplies and inventory you need to operate your franchise are more affordable. The reduced cost of goods and expenses makes it easier for you to start seeing profits.
#6: Getting Financed is Simpler
Established and successful franchisors are looked at positively by lenders. Why? Franchisors have already developed a proven business model and that alone makes it more likely for you to get approved for your business loan.
#7: Obtaining Success
Unfortunately, 20% of new businesses fail within a year of opening. However, a franchise has already proven their success. This means that you are already starting out one step ahead of the game by having a proven business model to replicate as you build your franchise.
#8: Room To Grow
Any businessperson can expand their business but that does not mean they would not face obstacles along the way– they would. By choosing a franchise model, buying a second location will offer you all the perks that the first did.
#9: Selling Your Business
If the time comes and you need to sell your franchise, you have a product people will recognize and want to invest in. The franchisor invested interest in you and now in your buyer too, meaning they can help find a replacement that is both qualified and capable of getting the job done.
There are several benefits to becoming a franchisor. It is far simpler to open a successful business than to try to branch out on your own and do something new. With plenty of franchises to choose from, you may consider finding a business partner that feels confident in the investment.
Trust Aaron Bakken for your professional service needs including owning a franchise of your own.
Contact Aaron (608-576-4592) for a Free Consultation!
About Aaron Bakken
Franchise Consultant for The Franchise Consulting Company
Aaron has 20+ years of franchise and independent business ownership experience. He also spent 5 years as the VP of Franchise Development for an international franchise group, growing the franchise to the advent of a private equity buyout. Whether you are looking to buy a franchise opportunity or franchise your business, Aaron knows how to guide you.
No Cost To You
Aaron is paid by franchisors and development companies for bringing them viable franchise investors. So frankly, his clients have nothing to lose by engaging with him but a bit of their time. Aaron helps his clients navigate the complex world of franchise ownership and development and provides long term guidance to help his clients achieve their entrepreneurship goals.