Franchising has become increasingly popular in recent years, riding a wave of success and becoming increasingly widespread.
Of course, there are numerous statistics that show franchising to be better than non-franchised startups, more successful than most alternatives and overall a great way to start a company. However, at the risk of filling the pages with tedious pro-franchise percentages we’ve decided to just look at the reasons you should choose a franchise in common sense terms.
The Common Caveat
Before we delve into the reasons to choose a franchise, we’re sure plenty of people reading this piece will be questioning us and will find the notion of franchising strange. They’ll cite the need to hand a part of your earnings over each month to the franchisor as a waste of money.
However if you’re one of these people then you need to consider the security, expertise and the proven system that they’ll be paying for. Franchises are far more likely to succeed than traditional enterprises and so there is a benefit that has to be paid for. And though it’s not always going to assure success, it greatly increases the chances.
There are drawbacks and negatives and the level of risk is still in existence, however if the franchisee and franchisor fit in terms of financial goals, style and values it can be a fantastic partnership.
Why to Choose Franchising
You’re the Boss
By choosing a franchise you are able to take control and build a business that is yours and your family’s. This is something that motivates a lot of people as they hope to take complete control of their own destiny and build a legacy for their children. This sense of independence is a powerful motivator.
Working hard for someone else often brings very few extra benefits, however doing so on your own terms is a different scenario and people find that they get a lot more in return for their effort.
Franchises are proven business systems that are shown to be successful time and time again. So, rather than having to create your own system from scratch you have the power to use something that’s been shown to consistently deliver results and also income.
The level of support a franchise receives is far greater than a new business could ever expect. From training, to advice to help if things aren’t going as well as expected, franchises get a lot of help and this greatly increases their success levels and the level of profit to be made from them.
Location, Location, Location
Franchises tend to have vast sums of data and information and this can be used to help a franchisor make the right decision about the right location for the business. These companies have research on demographics, traffic and other information that allows people to make highly informed decisions about a good place for the franchise. A new business sole trader does not have this benefit and so the risks of choosing somewhere that’s not ideal are higher.
Branding is such a huge part of most businesses nowadays and no matter how much money you put into it, it’s very hard to compete with an established brand. McDonalds’ Golden Arches is going to beat Freddy’s Burger Bar each and every time. With a franchise you get a brand name that could be priceless to your success.
Often with a franchise you get a set geographical area and nobody with that franchise can set up within a certain distance of that area.
So, as you can see there are numerous benefits of paying for a franchise when setting up a business.
Author: John Summers is a business writer with entrepreneurial aspirations and a believer in the power of small businesses. He works as blogger and editor for vending machine franchisor Tubz Brands http://www.tubzvendingfranchise.co.uk/, a growing UK based company.
Published: March 19, 2014