You could start a business of your own without involving anyone other than your advisers – an accountant, a solicitor and banker. But, there are many people who want to be their own boss but within the comfort zone of a tried and tested business. They don’t want to make a painful journey around the learning curve reinventing the wheel.
In franchising, someone has already done the work establishing the business, and has ironed out the wrinkles. A franchisor is now prepared to share that expertise with franchisees for a financial consideration. Basically, a franchise is a conveyor belt to faster business ownership.
And though like anything else in life, there are pros and cons involved, the benefits of franchising outweigh the disadvantages. Obviously no business alliance should be entered into without diligent evaluation, but subject to satisfaction at the end of that process, franchising has advantages that suit ambitious individuals.
Consider these benefits:
- The business has already been proven to work. The franchisor and the network of busily trading franchisees are testimony to that.
- You are fully trained in all aspects of the business, and sometimes your business partner and/or key staff receive training too.
- There is an operating system that can be learned and then implemented to the letter, or with a degree of flexibility.
- The brand is established. People recognise it. It’s embedded.
- The franchisor helps with finding a good location that will deliver traffic if that’s what is needed (e.g. for retail or food outlets) or will be cost efficient if visibility is not paramount (e.g. for cleaning or home improvement businesses).
- Marketing tools and ad campaigns are provided, both nationally for the brand and locally for individual franchisees. The majority of franchisors also help franchisees make a major local impact with a publicised launch of the business.
- Franchisees receive ongoing support from good franchisors, delivered via phone, a company intranet, newsletters, regular visits by a representative from the corporate office, regional meetings and annual conventions.
- Centralised purchasing is a feature of many franchises where the franchisee benefits from discounted pricing on goods for a retail store or ingredients for a restaurant and other supplies.
There are many different types of franchise opportunities available, with various investment commitment levels that can range from minimal to more substantial. For those not ready to leave their “day jobs,” there are plenty of offerings that require only a part-time commitment that grows gradually. Ambitious entrepreneurs, who want to totally commit themselves to owning a business, have a vast range of choices.