If you are considering starting your own business, you are faced with the decision of going it alone or buying a franchise organization. Both options offer their own advantages and disadvantages. However, for many, the benefits of owning a franchise far outweigh the associated disadvantages. So what makes the franchise so appealing? Is it the right decision for you?
Brand recognition
One of the most obvious advantages of owning a franchise lies in the fact that when you buy a franchise you are buying much more than a business, you are buying a name. Your franchise comes with some assurance that you have an existing customer base, already familiar with and receptive to your business even before you first open your doors. This greatly alleviates the stress of generating business for you from the start. This is not to say that no effort is required on your part, but it does mean that you are in a stronger position to start your own business awareness campaign in your community.
Support net
You may already be familiar with the phrase, “In business for yourself, not by yourself.” This simple statement says a lot about one of the biggest advantages a franchise owner has over an independent business owner. When he buys a franchise, he is buying a broad support network for his business. The franchisor wants his business to succeed. A successful business means higher royalty earnings, but it also means greater brand appeal to potential new franchisees. As such, any franchisor with their sights set on success will do everything in their power to provide you with the tools necessary for your business to grow and prosper.
proven business
Being a franchisee also takes a lot of the guesswork and trial-and-error out of running a business. When you buy a franchise, you are buying a proven business plan. You learn all the trade secrets and business strategies that have already made the trademark a success. Not only are you provided with a proven means of conducting business, but you also start your business with years of practical knowledge gleaned from the experience of others who have been running your business much longer than you have. Starting your business with a proven method of operation removes the risk of finding out what works and allows you to focus on growing your business from the start.
Marketing
The franchisor’s marketing reach also benefits the franchise owner. Very few independent business owners could hope to even come close to the influence and marketing power of a well-established brand name franchise organization. As a franchisee, you have the benefit of being promoted in nationwide marketing campaigns by your franchisor and receiving materials for local promotions. As such, you can rest assured knowing that in addition to your own marketing efforts, your name is also gaining recognition in ways you could never hope to achieve on your own.
It’s easy to see why franchising has become such a widespread institution. The appeal of being a business owner with fewer associated risks that an independent business owner incurs is great. Franchising simply offers a more stable and reliable base to develop your business.