The beauty of owning a franchise is that you get to benefit from an entire network of business owners working a common plan in support of an established brand that’s a lot bigger than any one individual. Yet, you get the freedom that comes with running a small business. Franchises also have a higher success rate compared to a business starting from scratch. While you have the advantage of running your operations under the umbrella of a renowned brand, you may also have options and be able to choose from more than one franchise model.
Before you decide to own a franchise, evaluate whether it is the right choice for you. Ask yourself a few questions to help determine if you are making the right move. Beforehand, conduct a self-assessment and establish if you have the commitment needed to run your own business. Also, look closely at the company that is intriguing to you. Would you enjoy running it? Remember that different franchises and industries may require a separate set of skills or have opposite business hours. Are you able to work within those parameters?
Different types of franchise models and their respective benefits:
Franchises come in all shapes and sizes. Here's a shortlist to help familiarize yourself with the different franchise models offered.
The brick and mortar franchise model is no longer the only game in town. Owed to technology, the business environment has undergone tremendous changes. Home-based businesses are the newest trend in the franchising world. People can run businesses from home and/or remotely. Most of these businesses are in the service industry and professional services. They include accounting, digital marketing services, consulting, etc. This model has many benefits.
One major benefit is that when you work from home, you have lower operating costs. Low overhead means you don't have to worry about paying rent, leasing, or utility expenses. Also, it is an easier business to start. There is no lease negotiation or the need to install fixtures or redesign the office space to fit the work environment. The other advantage of this model is that the owner gets to enjoy the convenience and comfort of working from home. With this, it is easy to achieve customer satisfaction as the needs of the customers are met promptly and conveniently.
To own a home-based franchise, however, requires a special set of skills. Time management is essential as it is easy for one to get distracted. This can be done by designing a work schedule and sticking to it.
2. Mobile businesses
A mobile business operates out of a truck, van or car or is a service that is taken on the road. This business model is ideal for people who do not like to work in an office or a store. The primary advantage of running a mobile franchise is that it is easy to start. And, just like home-based franchises, the startup cost are lower. There is also a lot of flexibility with the work schedule. Some excellent examples of mobile franchises are home and business maintenance services, pet grooming and personal fitness training.
If you are looking to run a mobile business, there are a few things that you need to take into consideration. Remember that mobile businesses do not have the benefit of walk-in traffic like in-line stores in a mall. Therefore, the marketing approach needs to be more proactive. Be sure to ask the franchisor about its marketing and customer-acquisition strategies.
Incorporating technology into your business will give you an edge. Since you are mobile, make it easy for customers to find you when they want and need you. Have a website and system in place that can help customers track you, make payments and communicate with you.
3. Brick and mortar businesses
Brick and mortar businesses are free-standing buildings and in-line stores in a mall. A brick and mortar business is one that has a standard location. Most franchises have this model. If you are looking to run a brick and mortar franchise, you are likely going to be in the retail, food and restaurant, or business services industry. The most significant advantage of this franchise model is the walk-in traffic.
However, this model is capital intensive. You need to find the premises before you start. For it to be successful, a lot of planning has to take place. Franchisees looking to run a brick and mortar business need to be particular about the location: the success of the business relies mostly on putting it in the right place!
When choosing a franchise model, you need to factor in your lifestyle. If the model appeals to you, then you will have a more enjoyable time running the business. Researching similar franchises will also give you insights on what to expect from the business.