Owning a franchise business can be a lucrative business solution if you are looking to enter into an already business model that has proved its mettle over the years. A widely adopted business model, franchise businesses have impressive success rates with a very low chance of failure.
If you are considering owning a franchise, we have compiled a list of 21 reasons why you should own franchise business.
1. Business assistance: Instead of starting from scratch, business owners will have a parent brand to rely on which already commands a huge customer base and brand value.
2. Low barrier to entry: Starting a franchise business does not require huge experience to start. Parent companies often provide training and workshops to get acquainted with the business.
3. Logistics: When you buy a franchise, all the equipment and supplies will be provided to start the business. In most cases, you will also be provided with marketing and management training.
Throughout the life of the business, franchise owners will be receiving valuable assistance which will help franchisees to reap the benefits of the parent company’s several marketing and outreach campaigns.
4. Lower rates of failure: When you buy into an established concept, chances of failure are minimized. There are several studies that point towards the effectiveness of the franchise business model.
5. Brand recognition: One of the hardest challenges to overcome when starting a new business is finding the first customer. This is one of the main reasons why most prefer to opt for franchising since this allows business owners to bypass a lot of marketing and branding shenanigans.
Owning a franchise allows you to tap into an already existing base of loyal customers as most franchises are well known and have a brand value. This will help to put your business on a fast track to profitability by attracting customers from the very first day.
6. Lower inventory cost: When compared to an individual business model, franchise owners have to spend way less on inventory and supplies as the parent companies always procure them in bulk, thus reducing the prices. This is a result of the parent companies deep-rooted agreement with its suppliers.
7. Easier finances: Since franchises have proved to be a successful business model, it is quite easy to secure the finances and the investments. Investors are more likely to invest since there is an established network of the parent company that ensures the profitability and sustainability of the business in the long run.
8. Higher profits: A franchise business model can be extremely profitable. A recent study published in the International Journal of Disaster Recovery and Business Continuity also confirmed this fact. In some cases, the entry investment could be significant however the returns could be incredible.
9. Extensive franchisor support: Most of the franchisors have made it a priority to support their franchisees. From starting the business to marketing, the help just keeps on coming.
10. Unlimited creativity: While franchises can have a predetermined image, there are plenty of avenues for you to explore. From improving the customer service to faster order processing, these small things make up to building the grander brand image.
11. Marketing support: Marketing is one of the key pillars of profitability for a business. Parent companies often extend support to the franchisees in the pursuit of attracting more customers.
12. The contracts are not permanent: Although the franchise business model is an excellent proposition, the contracts are not permanent and you can easily extend the contract or opt-out after the stipulated time.
13. Group endeavor: A successful franchise relies on the effort of a lot of members. From the parent company to the franchise owners, everyone has a specific role to fulfill to ensure the business is profitable. Therefore, not all responsibly lies on the shoulder of the franchisees.
14. Finances are shared: While it can be quite scary at first that the parent company always collects financial data, this can prove to be beneficial as these data help the parent companies to improve their business model and also audit royalty payments.
15. Be your own boss: Owning a franchise gives you a lot of flexibility in regards to your career. You should be able to craft more flexible routines as per your requirements of the day. You can run your entire business from home if you want to and will always have the support system to turn to when you need assistance.
16. No risk from others: When you are starting a new business, you will have to do thorough research on your audience, on your competition as well as the market. With a franchise business, there is no risk from your local competition, since the parent company has a much greater brand presence in the market.
17. Full control: one of the key benefits is the total control you will have over your business. As the rules and guidelines are pre-determined by the parent company, there is no need for you to create them separately for your staff.
18. Quality control: As the franchise businesses rely on specific suppliers for bulk procurement and then thoroughly checked by the quality control team at the parent company, the products and services are always guaranteed to be of top quality.
19. Uniformity: Again, as the products and services are standardized, customers are sure to get the same quality anywhere they are. This ensures greater brand loyalty and customer retention.
20. Make money: Well this might be the most obvious benefit of owning a franchise. Since franchises are successful business models aimed at expansion, it can be quite a valuable and profitable proposition. Big franchise owners like Domino’s and KFC regularly make hefty profits which have broken even into their initial investments.
21. Buying power: Franchise businesses allow the parent companies to help businesses benefit from the collective buying power, as it is passed down to the franchisees.
Buying a franchise to start your new business is going to be the best choice that you can make. Make sure you select the right franchise model and you will be off to the success track in no time.