Franchising offers individuals the opportunity to become part of an existing brand and business system through operating under a franchise license, but with a great degree of autonomy and other benefits that might not occur when starting up a new business from scratch. According to WhichFranchise, less than 7% of franchise owners fail within the first year, compared with a massive 90% of startups. Franchising as a business opportunity is more common than you may think; across many Western countries franchising is becoming increasingly widespread, with popular franchises including Subway, McDonald’s and Hilton Hotels. Becoming part of an established franchise has many advantages; here we take a look at the top 10 benefits of running a franchise:
A well-established brand will have built up a solid reputation, meaning that any stores opened under that name will already have a customer base by association and forged a firm identity, even if your store has only just opened in the area.
Running a franchise will involve training to get you up to speed with the business’ practices and you will usually be provided with reference materials to take home with you. A good franchise will ensure you have all the knowledge you need to make a success of the business and never leave you feeling out of your depth. This is a degree of support that many new businesses are lacking.
One of the upsides of franchising is that the company will have proven tools and strategies for attracting and retaining customers, which you will be able to access. The main franchisor will help you to develop a marketing plan and work out budgets, including how much should be spent on the grand opening. Having people on hand to call on during the initial stages of the business is an invaluable benefit of franchises.
When it comes to selecting business premises, purchasing equipment and designing the store, for example, you already have not only a business model to fall back on, but also the safety net of corporate support. From finding premises and negotiating a price to hiring contractors to deck out your store, the organisation will have staff and resources to guide you through the entire process. Running a franchise means you’re not alone.
One of the major benefits of being part of a franchise network, as opposed to starting up a new business, is that it eliminates many of the risks that come with new businesses. Running a franchise has fewer financial risks than creating a start-up, however it’s undoubtedly still hard work (don’t be mistaken!). It is also worth noting while that there may be less of a financial risk, the royalties you must pay to the parent company can vary greatly.
It’s likely the franchise will have established business relationships that you can utilise, whether for marketing or advertising, for example. They may also have local contacts you can make use of and deals with suppliers.
Franchises allow smaller businesses to compete with big businesses. Unlike an individual small business, franchises allow what are effectively several small businesses to come together and buy more cheaply and on better terms than individual small businesses can. The additional advantage of working under a recognised brand name helps franchises take on larger companies.
Open to Everyone
One of the best things about running a franchise is that anyone can do it! The nature of this type of business means that no specialist knowledge is required to become a franchisee, as full training will be provided. So the butcher could become the baker and the candlestick maker!
The opportunity to immerse yourself in a business and learn from franchisors is something that could be overlooked when running a franchise; however it’s one of the major perks of the job. Running a franchise gives you access to a wealth of knowledge and technical insights into how to manage a business.
Part of a Team
One of the best parts of becoming a franchisee of a trusted and well established brand and business system is that you become part of a team, while maintaining a degree of independence. Not only does the opportunity allow you to work alongside the main franchisor, but to an extent it also involves working with other franchisees. Being able to discuss the business and benchmarks with other individuals in the same position is a benefit it’s unlikely you’ll find in other business models. Communicating and sharing best practices amongst franchisees is a great way to ensure the business is working to the best of its potential.
Be Your Own Boss
While there is a higher authority in the form of the franchisor, you are the boss of your own store. And, what could be better than that?! So, while you’re operating under an established brand, as long as you comply with overall regulations, you’re in charge of your own destiny.
Ultimately, becoming part of a franchise isn’t for everyone; however there are many aspects of this type of business that can be considered huge benefits over starting up a new business. Franchises offer a greater degree of security, support, and access to experts and resources for example, but for some the idea of the franchisor and existing regulations might detract from the idea of having autonomy.
This article was written by Hannah Buckley of Pack & Send – specialists in providing professional packing solutions and international delivery, courier & freight services. Visit them online at: http://www.packsend.co.uk/