If you are thinking about taking the big step of going into business for yourself, or if you have an existing business that you’re looking to grow, then you should consider franchise ownership.
Becoming a franchise owner is an often overlooked option for many business owners, but it is a great option with many associated benefits. The first step is to research different franchise operations that would interest you. Then, ask questions, and remember to keep an open mind. You might discover that becoming a franchise owner is a perfect fit for you. Here are ten reasons why:
1. Established Brand
As a franchise owner, you’ll be working with an established business model that has been proven to work repeatedly. Customers will likely already be familiar with the brand and know what to expect from your products or services.
You won’t have to spend time worrying about building brand recognition from the ground-up, which is a huge benefit. Customers will already be familiar with your brand and flock to your business just for the sole reason of knowing who you are compared to an unknown competitor.
2. Co-op Marketing
It’s no secret that marketing is time consuming, difficult, and expensive. Lucky for franchise owners, you generally share these costs with the franchisor. You’ll also have a full marketing team to support you, which includes digital specialists, graphic designers, and social media extraordinaires. These are professionals you won’t have to pay to employ because they are already there to support you behind the scenes. If you have questions about what you can improve upon locally, they will be there to help, too.
When you choose a franchise to join, you’ll have a whole team of experts whose sole purpose is to help you succeed in your business. There will be no “good bye and good luck” from them; they’ll teach you the ins and outs of the business, such as how to hire quality staff, customer service tips, financial advice, and much more in-depth topics.
You won’t have to start up your business blind, and that’s a pretty great feeling.
4. Less Risky
Franchise businesses have a statistically higher rate of survival than regular startup businesses. That being said, you’ll also have a much easier time achieving financial assistance from a bank if you need funding for a franchise versus a startup. Banks look at franchises more favorably than other startups because you will have a large firm behind you, adding credibility, reliability, and lessening the potential risk possibility of a failing business.
Often times, franchising firms will offer financial assistance if needed, too, such as payment plans, equipment leasing, and more. Having this option puts much less financial stress on you, especially if you are already running another business, too.
5. Strategic Planning and Support
Your corporate franchisor office will normally have some sort of support program for their franchise owners, whether it be a 24/7 hotline, a national call center for customer service support when you’re off the clock, an intranet with newsletters and updates, etc.
You’ll also have the option to call or email an expert for advice if you find yourself in a sticky situation with a customer or occurrence on the job, because you are likely not the first person to encounter this problem.
6. Research and Development
The corporate franchise office will always be working to become more innovative, appealing to customers, and provide a better product or service, with the goal of always having the best offering on the market.
Corporate will normally work out all the kinks that their research may contain long before the new protocols will reach your facilities, so you’ll be ready to go with the latest and greatest business ideas once it’s time for implementation.
7. Defined Territory
Depending on which franchise program you choose, you may be the only franchisee in a certain territory. This will give you exclusivity to all customers within that area, allowing you to expand and serve more customers that you may have been able to before. This will also eliminate competing with fellow franchisees representing the same brand.
8. Exit Strategy
Maybe you are looking to enter into a short-term business endeavor, but even if you’re in it for the long haul, franchising offers a very alluring exit strategy that a normal startup business lacks. Since the brand is well-known and established, it will be much easier to sell your franchise to another interested party, especially if you are in a coveted territory. There is an attractive element to the selling power of a known brand giving you confidence that your investment will increase in value, paving the way for an early and financially secure retirement.
9. Increased Purchasing Power
Normally, when purchasing a franchise you will receive higher discounts and lower overhead expenses compared to independently-owned businesses. This benefit happens because, as a franchisee, you are able to take advantage of low-cost bulk purchasing from the company’s nationwide (in most cases) distribution systems. There’s strength in numbers, especially when it comes to supplier and wholesaler discounts.
10. Access to Other Owners Within the Same Franchise
Along with your corporate resources, you’ll also be able to communicate with other franchisees just like yourself through the intranet, seminars, meetings, or any other platforms that the franchisor provides. You’ll be able to ask questions, learn from each other, and share ideas that have or have not worked for you.
For more information, contact the Spring-Green Franchise Development Team today.