Perhaps you’ve always dreamt of owning your own business but haven’t known where to start. Maybe you’re looking for a career change and desire business ownership opportunities. The question is, is a franchise right for you, and how do you navigate your way to success. We’re here to guide you.
One question our team is often asked is “Why franchise, and not just go at it alone?” It’s a great question, and one we believe everyone embarking on entrepreneurship should ask themselves in order to help determine if they would make a good franchisee. While there are many advantages of both, we have a passion for the franchise model. Why? Here are the TOP 10 REASONS.
- Proven Model – A good franchisor has established a business model that works well and produces positive results. A franchisor is required to provide you with comprehensive information in their FDD. As a potential franchisee, you can also contact existing franchisees to verify that the business model has, in fact, been successful for them as well.
- Brand Recognition – Who can argue with the value of brands like Coke or Pepsi, names that are synonymous with the products they represent? Well-established brands already have a customer following that will be excited to see you open a location in their community. However, newer franchises are also exciting, and on the cutting edge!
- Training – A franchise worth exploring is a franchise system that has training programs designed to give you the information you need to successfully run one of their franchises. They will have reference materials to assist you in running your day-to-day operations. Most require some sort of training before you even open your doors for business. Many will offer refresher courses for you and your employees as new technology and processes become available, and as regulations change.
- Operational Support – You aren’t on an island once you open your doors. Franchisors have staff dedicated to providing you with ongoing assistance. The support staff is always available when/if you need guidance or want to share new ideas that could help grow the entire franchise system. “A rising tide lifts all boats.”
- Marketing Assistance – Most franchises have a “tool box” available with strategies for attracting and retaining customers. These plans are invaluable. The marketing tools provided have been developed through trial and error; only the best strategies are retained, saving you immeasurable amounts of time and money, as you get started. Usually, the marketing team will help you develop the specific marketing plans and budgets for your grand opening and ongoing efforts.
- Real Estate Assistance – The majority of franchisors can help you find the right site for your location. Further, they will have manuals, documentation, staff and/or a network of professionals familiar with their business to help you. Having opened locations previously, the team available to you can help negotiate the best possible deal for your site. This expertise keeps costs down, frees up capital, and leads to the best possible chance of success in any site-driven location.
- Construction Assistance – One of the things that attracted you to the business you are evaluating might be the aesthetics. From the building design to the furniture mix, franchisors can save you time by helping you design the layout of the business and select the best contractors to complete the build out. They have done this before and know the timeframes required for each step of the construction process.
- Purchasing Power – As franchise systems grow, they’re able to take advantage of the buying power of the entire system. The franchise system can help you with everything you need to build and run your business, from supplies, inventory, uniforms etc. all available at significantly lower prices than you would achieve as an independent owner.
- Risk Avoidance – The best reason to buy a franchise is to avoid much of the risk of starting a new business. As this list points out, there are both challenges and advantages related to starting a new business. According to the Department of Commerce, after seven years 91% of new franchises are still in operation. Compared to only 20% of individual start-up businesses, it’s clear why so many people prefer the franchising model!
- Financing – The amount of capital needed to open any business can vary greatly. One part of our daily conversations with potential franchisees relates to the source of financing. While few franchise systems finance internally, some do. Most have relationships in place with third parties who are familiar with their brand. These lending institutions may be more favorable to financing a franchise operation, as opposed to a start-up operation.
We would like to share more of the benefits of franchising with you. Contact us today to schedule a free consultation with one of our franchise consultants. Just fill out the contact form, or call 517.763.3661!
Owning a franchise can be a perfect way to open your own business, but there are thousands of concepts across nearly a hundred different industries to choose from. Premier Franchise Solutions is privileged to work with some of the greatest franchise concepts, offering franchise opportunities to qualified candidates. Our team of franchise experts work with you to identify and explore ideal franchise opportunities that meet your professional and personal goals. Our team is with you every step of the way; from identifying the right franchise to accessing the capital to own and operate a successful franchise. We take a lot of the guesswork out, to help ensure your success.