Why is Buying a Franchise a Smart Move: 10 Advantages of Buying a Franchise
1) A Springboard to Entrepreneurship
Buying a franchise allows you to become an entrepreneur in less time, limiting the multiple barriers first-time business owners would face. Essentially, you are buying a “business in a box” – a turnkey operation that has been designed, tested, and proven by a team of industry experts. By simply paying the fees and costs involved and following the designated training program, your entry to entrepreneurship is instantly satisfied.
2) A Safer Investment Decision
The failure rate of franchises is much lower than starting an independent business. Franchises are a safer investment because as the “system” grows, so should the security and strength of the infrastructure. To support this growth, the franchisor continues to add newer and more effective methods of improving the concept. A large franchise system usually means that brand recognition has reached widespread proportions, thereby increasing your revenue potential.
3) Enhanced Lifestyle
Many franchisees have claimed that franchising has allowed them lifestyle flexibilities that conventional employment cannot offer. The number one lifestyle perk continues to be the opportunity to spend more time with family, followed by an enhanced income. Franchisees have felt a greater sense of pride, financial accomplishment, and personal success as members of a successful franchise concept.
4) Turning Passion Into Profit
There are literally hundreds of franchise opportunities available in various industries and sectors which should satisfy even the most discriminating franchisee prospect. It should not be too difficult to find a franchise to match your most intense passion, hobby, or interest. Over 70% of franchisees claim that their decision to invest in a franchise was in selecting a business model that could turn passion into profit.
5) Quicker and Easier Access to Financing
Buying into a franchise with a proven business system makes securing financing much more of a streamlined process, involving less red tape and paperwork. Some larger franchise systems even provide in-house financing and/or leasing options.
6) Ongoing Training and Franchisor Support
The initial training program offered by franchisors is a key selling feature which franchisee prospects should examine thoroughly prior to signing the franchise agreement. The initial training should involve head office and/or an in-house training session, which includes an operations manual. Ongoing training allows franchisees to grow within the system and develop strong business operating skills.
7) Opportunity for Growth Within the Franchise System
Successful franchisees in any system are rewarded with advancement within the chain by receiving incentives on the purchase of additional outlets, leadership roles at the head office level, and an opportunity to acquire area developer rights – a role involving the overseeing and development of the system in a designated geographical area.
8) High Quality Products and Services
One of the expectations of a franchisee is to support and promote the products and/or services of the franchise system. The franchisor has done extensive research and development in this key area since the growth and success of the business is dependent on the high quality of its offerings to the buying public. A franchisee who believes in the company’s products and services stands a greater chance of achieving higher revenue potential and customer satisfaction.
9) Group Marketing and Purchasing Power.
This is one of the biggest advantages of owning a franchise – A franchisee might only own and manage one small store but they still share the combined marketing and purchasing power of the entire group, which gives the franchisee a significant advantage over similar non-franchised stores.
10) Buying Into a Start-Up Franchise System
Buying into a start-up franchise system can involve some financial risk and operational challenges, yet the long-term rewards – especially financial – is a reason to consider investing in a ground-floor opportunity. Pioneer franchising relies on the innovations, ideas, and determination of the “starter group” of franchisees to assist in the growth and development of the system. New franchisors typically offer its starter group with investment incentives such as a reduced franchise fee and a royalty-free period.
So in summary when you buy a sound, established franchise you are purchasing the following elements–some of them more tangible than others, but all of them valuable:
* A successful business concept and hence a safer investment* A documented method and system of doing business that has already thrived in a variety of business climates and under the ownership of a variety of individuals* Name and Brand recognition* Training* Ongoing support and advice from the franchisor* Moral support from fellow franchisees* Group purchasing power* Group marketing power
All these advantages don’t, of course, guarantee a successful business. You still have to market your services or sell your product. However, you should be able to generate a positive cash flow much more quickly with a franchise, because all the groundwork has been done for you and you can begin selling immediately. Purchasing a franchise, whether it be new or existing, is therefore considered in most parts, a smart move!