Looking to start your own business? If you want to own your own company, but are not sure where to start or how, you may want to consider purchasing a franchise. Franchises are great, because they offer many advantages to the franchisee, allowing them to operate their own business and gain profits, while providing a format to help direct your business.
If you are thinking that operating a franchise will be a ready-to-use business, you are mistaken. Although franchise ownership is not a buy-and-fly operation, many franchisees do find that starting and operating a franchised outlet fit their personal tastes much better than trying to start a company from scratch.
Here are some great examples of the most common advantages of operating a franchised business:
1. Instant Recognition: The main benefit of purchasing a franchised business is that it allows you to use your parent company’s already-established name to attract a pre-existing customer base. A franchise is basically a license to use an existing company’s name, trademarks, products, services, and other resources in return for agreeing to use that company’s existing business formats and provide a percentage of your franchise’s income and earnings. An established company means established products and services, which appeal to an established market, already waiting to buy your product!
2. Working Operations and Procedures: When you purchase a business format franchise, you gain the privilege of not only being able to sell the parent company’s products or services, but also the right to use their established industry practices. These practices may include training programs, marketing strategies, trade secrets, accounting systems, etc. This cuts down drastically any problems you will encounter in trying to establish these systems on your own.
3. Lower Start-Up Costs: Normally, the initial fee of purchasing a franchise is substantially lower than the cost of setting up an enterprise from the ground up. Combine this with the pre-established operations formats that will be provided for you, mentioned above, and you have saved yourself quite a bit of money and energy.
4. Ongoing Support: While the initial advantages of operating a franchise have been illustrated, one of the most important aspects of having a franchisee is the fact that the parent company will provide you with ongoing support throughout your venture. You will never have to worry about being on your own.
5. Financial Clarification: In addition, most of the financial aspects of running a company will be much more straightforward. The franchisor will be able to provide you with details of both start-up costs and operational costs, taking much of the guess work out of running a business.