Irrespective of the type of franchise you find yourself interested in, franchising as a whole presents multiple advantages for the business owner. It goes without saying that it’s much easier to establish as opposed to a normal startup, but it also opens up many doors as well as a world of opportunities that a regular business owner doesn’t and won’t have access to. This is because there’s simply no other business structure that offers such high rates of success. If you’re interested in this model and you’re wondering what are the advantages of franchising, keep reading!
Advantages of franchising
There are so many benefits of franchising that it’s hard to narrow it down to just a few. However, we’ve prepared a careful selection of some of the most important advantages of franchise business to help you make the best decision.
- Ability to grow your business: for existing business owners, franchising offers a great opportunity of scaling without massive investments into something that may or may not work. By choosing to franchise your business, you can steadily grow it and develop a network of like-minded individuals to help you grow more and earn more.
- Gives you a re-saleable asset: another advantage of franchising is the fact that you can always re-sell it should you wish to retire or pursue a different path because it is considered an asset and has monetary value.
- Royalties and fees earned: every franchisee that works under your brand will be paying you a certain amount of royalties, which you can add to the profit margin of your franchise business. It’s no longer a one-man effort. It’s a collaborative effort with great results for all parties involved.
- Management is easier: a franchise business typically has pre-established systems that make daily management that much easier. This is due to the fact that employment and recruitment, franchisee support, processes, technology and marketing channels have all been put into place and are ready to be used to ensure the success of a franchise business.
- A well-known brand: as is commonly known, brands take years to develop and build over time. It takes painstaking effort to ensure that each customer is satisfied with the product or service offered. And it takes even more effort to ensure that the brand voice is consistent throughout. Working with a franchise means there’s no need to even think about establishing a brand because it’s already been created for you. Although an intangible asset, the brand is one of the most important aspects of a business.
- Higher levels of motivation: when you work for yourself as opposed to working for someone else, there is an intrinsic motivation that drives you to do more and be more. One of the reasons is that internal factors stimulate individuals much more than external ones. As a highly motivated franchisee or even a franchise owner, you will be much more able to put in the efforts while reaping the rewards.
- Better purchasing power: working with a franchise partner also opens up many doors to better purchasing power. Whether to get equipment and materials at better prices or even to secure financing for your business, you will be able to secure much better deals.
- A strong support system: further benefits of a franchise include the fact that it offers you a highly resilient and strong support system. Something you will not be able to get if you were to go into business by yourself. You can also take advantage of the numerous big business network advantages while enjoying small business ownership.
- No prior experience required: yes, there are nice-to-have skills such as management and strong communication and people skills, but that’s something that’s not a necessity when joining an existing franchise business.
- A higher rate of success: and last but not least, it’s proven that franchises have a much better rate of success than regular startup businesses. This is owing to a number of factors, not least of which is the proven and profitable business model that you can take advantage of, which is also recession-proof and can help you weather any economic storm.
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There are multiple franchise advantages for you to consider as you take the leap and follow the path to franchising. Starting a business from scratch can be a daunting and intimidating feat but you don’t have to do it alone. Let your franchise partner support you every step of the way with a number of resources, skills, experience, a well-established brand and so much more. These are just a few of the advantages of a franchise for you to consider and offers you a taste of what you can expect further down the road. As you embark on this journey, you will always have a network of peers who’ve been through it all and more and they’ll be able to lend you a helping hand whenever you need it. All this while your franchise partner will guide and steer you through.