Franchising is one of the most rewarding business opportunities available. If you want to build a successful business, franchising is one way to go about it. Here are ten advantages of franchising.
1) Proven System
There’s no better opportunity than franchising if you’re looking for an affordable and proven system of doing business. You buy into an established franchise system that has already refined its methods, tested its products or services in one market, and proven that it will work elsewhere.
2) Raising Capital
It’s not easy to raise capital when you’re just starting in business. Franchising makes this possible by providing investors with a good return on their money. They get the benefits of your efforts plus the support of corporate offices. In addition, because franchising attracts investors, you can usually borrow the money you need.
3) Deferred Income
Many franchisors offer their franchisees the opportunity to defer regular monthly royalty fees for up to three years. That way, if your business is struggling in its early stages, it’ll still receive royalty payments every month, just like any other franchised business that’s thriving (which most are).
4) Training and Support
Franchisees don’t often realize how much training and support they can expect until they join a particular network. Of course, some systems provide more than others; however, all franchisors make an effort to help their franchisees succeed. They want their franchisees to be successful because that reflects well on their brand.
5) Regional and National Advertising
One of the most appealing aspects of franchising is that you’re tapping into a pre-existing advertising and marketing campaign that’s already been successful in other markets. This includes national media campaigns and localized efforts coordinated by the franchisor.
6) Corporate Name and Logo
Another benefit of being a franchisee is that you can access the franchisor’s protected corporate name and logo. That means customers will instantly know who you are and what you stand for, regardless of where your business is located in the country.
7) Standardized Procedures
In order to maintain uniformity throughout their system, franchisors establish standardized procedures for just about everything, from the products and services you offer to how you operate your business on a daily basis. This makes it possible for franchisees to replicate the successes of others in the system.
8) Supportive Network of Franchisees
One of the advantages of franchising is that you’re not in it alone. Franchisees are a supportive network of business owners who understand the challenges and rewards of running a small business. You can rely on them for help and advice when needed.
9) Established Operating Procedures
A big part of a successful franchise has detailed and up-to-date operating procedures that all franchisees must follow. This ensures that no matter where your business is located, it will be run in the same way as all the others in the system. This helps to maintain brand consistency and keeps customers happy.
10) Feeling of Security
When you’re part of a franchise network, you have the security of knowing that if something goes wrong with your business, there are corporate resources available to help you get back on your feet. This can be an important consideration when making the decision to become a franchisee.