Investing in a franchised brand that has already experienced growth and success makes it easier to get started with business ownership. With the ongoing support and resources that franchisees have access to and the brand recognition that often comes along with franchising, it is a win-win situation.
The basics of franchising are simple. A business seeking growth sells a license to franchisees in order to expand and receive royalty fees. In exchange, the franchisee is entitled to ongoing support and access to trademarks, proprietary programs, real estate assistance, and so many other resources.
Compared to other types of business ownership, such as building a business from scratch as a sole proprietorship, partnership, or limited liability company (LLC), franchising has a higher success rate and is a great way for up and coming professionals to be their own boss while still receiving support, training, and guidance.
There are over 750,000 franchise establishments in the United States alone, and that number continues to grow every day. In fact, one in twelve businesses are part of a franchise, and the franchise industry accounts for 50% of all retail sales.
We’ve put together a list of some of the advantages of franchising. See for yourself why becoming a franchise partner could be the opportunity you are looking for!
1. Lower Risk
The ongoing support accessible to franchise partners, as well as the prebuilt reputation for the brand often means that buying a franchise is less risky than starting from scratch with no track record of success.
Additionally, getting a business loan from the bank becomes far easier when you are purchasing a franchise. Investing in a franchise is generally safer than starting up your own business and securing financing is much more likely.
Buying a franchise effectively allows you to “buy” a new job as a business owner. Many individuals take pride in owning their own business and being able to break free from the corporate world. The ability to break from the norm and dive into a new industry can make this an exciting opportunity for anyone willing to take the leap.
Part of joining a franchise means access to business development training. The franchisor will guide you through the entire process of becoming a franchise partner and starting up your new business. You will have the opportunity to learn about healthy business habits, business planning, how to grow your customer base, and more. Business coaches will help you achieve a successful grand opening and offer ongoing consultation as your business grows.
4. Protected Territory and Build-out Assistance
The location of your franchise is arguably one of the most important factors for your success as a franchisee. You will receive assistance with all of the logistics involved in the real estate and build-out for your business, including determining the most profitable location. Whether you are building your franchise location from the ground up or looking to secure and renovate existing real estate, the franchisor and its partners will walk you through every step of the process.
5. Franchising Support
Receive the best-in-class support services, including a proven business model, talented leadership, supply chain services, and a wealth of industry knowledge. One great benefit of joining a franchise is that you will not have to waste money and time figuring out what works and what doesn’t – the franchisor has already done that for you. Take advantage of their expertise and watch your business explode!
6. Franchisor Marketing
As a franchisee, you will also benefit from ready-made promotional materials, digital marketing, and targeted advertising to help you reach your customers. You will have access to top-notch content and marketing strategies to serve your advertising needs, allowing you to keep your focus on your running your business.
7. Talent Recruitment
Running a successful business is a team effort. Having a great team behind you when setting up your franchise will enhance your success and create a more enjoyable process. A devoted team can prove very profitable by maintaining morale and a high level of customer satisfaction. A reputable franchisor will have a team in place that will assist you in attracting the best employees for your business.
Being a franchise partner connects you to a larger community of business owners across the country. You will be able to share resources, stories, and advice to help one another continue to grow and further the success of the brand, which in return benefits each franchisee.
With the encouragement of a full support system, you will never be alone in this endeavor. There will always be someone to guide you through any roadblocks you might run into, and to provide guidance when you are first starting on your journey.
9. No Experience Necessary!
A key component of building a world-class franchise system and culture is partnering with the right people. The good news is that you don’t necessarily need any industry or business experience to be a successful franchise partner. It’s more important that you are a motivated, strong leader with the ability to support your lifestyle while starting up the franchise.
Deciding to become a franchisee can be both exciting and overwhelming. Rest assured, you will not be on this franchising journey alone. One of the many benefits of franchising is that you are in business for yourself, but not by yourself!