A franchise is a single location of a larger company. Franchising opportunities are found in nearly every industry from retail to foodservice and beyond. For someone with the drive to start a new business, franchises provide a fantastic opportunity with lots of benefits that you cannot get with other new companies. Here are three of the many benefits of buying a franchise.
People interested in owning a franchise will have to apply for the opportunity and be accepted. There is a large initial investment required that will be used towards the set up of the new location. Beyond the initial investment, there are ongoing fees and costs that need to be taken into consideration. However, in exchange for that investment, the franchisee will receive training, resources, and everything they need to run a successful business. Additionally, if the franchise owner runs into problems, they will have contacts in the company they can reach out to to get ideas and support.
- Franchises pose less risk than start-up businesses. While the initial and ongoing investment of a franchise may seem intimidating, the rate of success is far higher than for a start-up that may cost less to start. Franchise owners get a lot of benefits from their parent company that help them to succeed. Additionally, franchises already have a customer following and brand awareness that you have to create and build with a small start-up.
- Franchises provide business training. One of the things that prevent a lot of would-be entrepreneurs from starting their own business is the fear that goes with a lack of knowledge. They may not have a business background or education, so they are afraid of what they don’t know. Franchises provide their franchise owners with ongoing training on how to run the business they are buying into. You do not need a business degree or years of experience to run a franchise successfully.
- Franchises offer all the benefits of a national brand while still providing an ownership opportunity. For people with the urge to start a business, they don’t want to work for someone else anymore. They want the independence of owning their own business. A franchise offers that, but also provides the resources, support, and brand awareness of a national company. The company already has a reputation and customer base that the franchise owner can benefit from without having to grow. It is up to the individual owners to maintain a good reputation and live up to the national brand, but customers will give them that opportunity.
Owning a franchise is not for everyone. Some people want the experience of growing their own business, or they have a specific idea they want to build a business around. Franchises are not for everyone, but they do offer an opportunity that is unique in business and cannot be duplicated with a start-up.
When deciding if you want to buy a franchise, you need to take time to consider what kind of franchise you want to buy based on what you are passionate about and what would go well in your area. There are nearly endless opportunities. While many people think of restaurants when they think of franchises, there are opportunities in shipping, ready mix concrete supplier, retail, house cleaning services, and more. You also have to find what franchises are available in your area. Once you have narrowed it down to a couple of businesses, you need to reach out to them to see what their process is for franchisees. Most companies provide franchise information and a request for information option on their websites so that you can start there.
You will also need to consider financing. Typically, new business owners that are looking to buy a franchise have an easier time getting financing than start-ups due to the more significant potential for success.