Advantages of Running a Franchise
Wednesday, October 07 2020
Are you interested in setting up your own business, but unsure how you should proceed? There are a wide variety of options open to you, but the one we want to consider in this post is investing in a franchise. A franchise is when you are allowed to run a business unit that is part of a smaller parent company.
In exchange for paying a specific percentage of your sales, you get support and guidance from the parent company.
That’s not all, though. There are many great benefits you can get from owning a franchise. If you still remain unconvinced, you’ve come to the right place. In the following post, we are going to look at some of the major benefits of taking on a franchise.
Tried and Tested Business Model
When you take on a franchise you get the benefit of a business model that has been tried and tested. The company you buy the franchise from can provide you with marketing techniques and procedures that have worked for other franchise owners. In this way, you can avoid a lot of the trial and error that often comes with establishing a fresh new business, along with the associated risks.
From a marketing point of view, a franchise gives you the benefit of a recognized brand. As you are running a business that has a brand that is already established, it is unlikely you will need to spend quite as much money, time and effort on building a brand. You will find that there are many customers that have paid for the company’s services and products from other franchise owners and who have developed some trust and loyalty. In the brand.
Support and Training
The company you buy a franchise from will provide training initially for you and your workforce concerning business operations. This is extremely advantageous if you are new to this kind of business or this is your first time owning a business. If it’s a new experience you may not have the knowledge or knowhow to get the best out of your staff. Starting a business from scratch can be incredibly difficult for this reason.
It is also normally the case that you will receive help in securing financing and a suitable site location. However, the company who you buy the franchise from are unlikely to offer you the financing directly. They will simply help you find a provider for financial support.
Corporation Marketing and Advertising
If the franchise you purchase is part of a company that is established nationally, you will be able to take advantage of their advertising campaigns. For instance, franchises like Burger King and McDonald’s advertise at a national level, which is of great help to directing customers to your business. You can then use your own local marketing and advertising campaigns to supplement these national advertisements.
Exclusivity Over Business Territories
One of the difficulties many new businesses have is operating in an area where there are many other similar businesses. This can make it harder for any new business you establish to be a success when the level of competition is high. When you have a franchise, you do not have this problem because when you invest in one, the company offering the franchise will often offer exclusivity to you over a specific area or region, like a county, for instance. This means you won’t lose any of the business you have worked hard for another company. You may find this a huge benefit if you have plans to open up more than one franchise at some point further down the line within a region.