Entrepreneurs have many options when it comes to starting their own business. For some, it makes sense to start a sole proprietorship and put their own ideas to the test in the marketplace. So why should you start a franchise? Franchising provides a perfect balance of freedom and stability and can be ideal for entrepreneurs of every ability level. Here are the top 7 benefits of franchising that you might consider as you think about starting a business.
1. Easier Startup Process
The hardest part of any business is getting off the ground. But the tried-and-true business model provided by the franchisor can streamline the awkward process of securing funds, purchasing supplies, and learning how to operate the business.
In most cases, the process is so standardized you’ll simply follow the guidance of the franchisor. This proven routine takes the guesswork out of the initial phase of your business.
2. Brand Recognition
A key reason to buy a franchise is their established brand. Rather than building your own, you can take advantage of all the work already been done on the brand of the franchise you’re buying. If you’re the creative type, then building a brand might bring more satisfaction, but it will also come with a lot of hard work.
You’ll have to invest time and energy in trying to build brand awareness among your target market. This can mean it will take time before you start to generate meaningful revenue.
With a franchise, you get the benefit of a built-in brand. Customers will connect the franchise name and logo to past experiences with the company and know exactly what to expect when they visit your business location.
3. Lower Risk
Everyone knows that starting your own business can be risky. Few businesses ever see their fifth anniversary (and some don’t see their first). But franchises offer considerably less risk than starting a business from scratch. Why? Because the business model has been tried and proven effective so there’s less chance of the business failing.
Additionally, franchising companies offer support that can ensure you stay profitable from the day your doors first open. You always have the backing of an established, successful company.
4. Support from the Franchisor
One of the best reasons to buy a franchise is the support offered by the franchise itself. Many franchises offer support in the form of:
- Supplies and materials
In many cases, you don’t even need to have prior industry experience to become a successful franchisee. The franchisor can provide training to help you get started and at the very least will give guidance on the policies and best practices of the franchising company.
5. Higher Profits
When you start your own business, it usually takes time before you start to generate a meaningful profit. But when you represent a franchise, the brand itself brings with it a built-in customer base, ensuring your business is profitable from the first day.
That’s good news for franchisees, whose salary is directly tied to the franchise’s revenue. Being a franchisee offers a clearer path toward financial success than being a sole proprietor of your own startup business.
6. Greater Buying Power
Many businesses will require support in the form of supplies and equipment. These overhead costs can eat into your bottom line — unless you have a way to secure these materials at a reduced cost. Franchising allows you to do just that.
By partnering with a franchise, you’ll have greater buying power, thanks to the franchising network of which you’re now a part. Because the franchise buys these supplies and materials so regularly, you can typically acquire equipment, inventory, and more at a reduced cost.
7. Marketing Done for You
One of the best reasons to buy a franchise is that the franchising company likely has its own marketing department. It will also conduct marketing research and devise strategies that best fit the brand, and you’ll reap the rewards.
This may mean that as a franchisee, you’ll have to pay an additional cost for promotional materials used in-store. But you’ll often get the benefit of nationwide ad campaigns on TV or on the internet, all of which contribute to your brand recognition and may promote business during peak sales seasons.
Where Can I Buy a Franchise?
Buying a franchise is easier than you think. Franchise.com offers opportunities for entrepreneurs like you. Just use our search tool to find franchises in your area or filter your search by investment level to find a franchise that fits your budget.