If you have thought long and hard about going into your own business and made the decision to move forward, then you must look hard at the opportunities franchising offers. From a pure statistical view, we know that 1 in 5 traditional businesses succeed and in the case of franchise businesses, at least 4 in 5 make it. Investing in a franchise offers the franchisee many advantages that are simply not characteristic of traditional new businesses.
Following are a few reasons why investing in a franchise makes the best business sense:
1) When a candidate makes an investment in a franchise, they are investing in a "system" that was developed long before the thought of going into business ever entered their head. The system has been created, massaged and optimized over the years into a well functioning business machine. Corporate is always there to help and fellow franchisees are there to share ideas on how to optimize the business model. All are in concert with one goal in mind, to build a powerful brand through the application of the aggregate experience of all involved.
2) When a franchise candidate is looking at a particular franchise concept, there are endless opportunities and creative ways to validate that franchise brand. It is very difficult to achieve this with a traditional business. With franchising you have an opportunity to talk with many other owners about their experience and learn what it is really like to be in a particular franchise system. You can visit the location, see the look of their online presence, look for any pending legal actions, touch, feel and try the product or service and get the opinion of others.
3) While owners are busy building their business, corporate is creating the next product or service that the franchise will offer to stay current with changing times. As an owner, the franchisee does not have to think of large R & D outlays. The owner gets to focus on the business and if the owner is experiencing difficulties, the corporate leadership is willing to get involved to help correct things that could be impacting growth.
4) With brand strength, comes buying power and efficiencies of scale by acquiring products for resale or products used in the business to support operations at volume discounts. In most cases, corporate will have already qualified and approved select vendors. Cooperative efforts in marketing and advertising keep each owner on target and often are able to share the costs.
5) Quality franchises not only provide tremendous training before the franchisee opens for business, but will make available all kinds of support training, seminars and webinars long after the franchise is opened. Continuous learning is a focus of the franchisor and will help solidify brand strength and presence in the market place.
Franchising offers many advantages, but does it cost anything? The answer to this question is that the "royalty" paid to corporate by each franchisee on a regular basis is used to provide all of these services in an effort to strengthen the brand. Over time an incredible cohesiveness among all franchisees in the system gives the brand a life of its own. This brand strength, synergistic as it often is, can take the franchise to places never imagined. You might want to invest in that franchise system to partake in the ride.
Fourth in a series of 8 posts by Al McCooey, President of Summit Franchises and a franchise consultant who helps clients identify excellent fitting franchises that they will enjoy operating and have the opportunity to be highly successful at. Learn more about Al and franchising at http://www.summitfranchises.com. Next week: Financing Options for Franchise Ownership.