Are you thinking of buying a franchise but second-guessing whether it is the right choice? After all, why spend all your capital on a big brand name when you could easily copy their efforts? If this is what’s running through your mind right now, think again. There are many reasons why copying what successful businesses already do doesn’t work, one of them being that 75-90% of all startups fail. You don’t really want to end up as one of those statistics, do you? This is why so many entrepreneurs are choosing the franchise route.
Though you need to pay a premium upfront, the benefits of buying a franchise are innumerable and far outweigh the initial costs, which you generally recoup quite quickly. However, we know you don’t have the time to read an endless list of benefits of buying a franchise, which is why we’ve narrowed it down to 5 of the best benefits.
5 Benefits of Buying a Franchise
1. There is power in a name
Perhaps one of the biggest benefits of buying a franchise is that you’re buying into a well-known and trusted name. Think of global brands like McDonalds and 7 Eleven. They have spent millions on their branding and logos, and franchisees get to take full advantage of this market image. Furthermore, most established franchises have already survived years in their respective industries, meaning the general public can easily identify them.
It’s important to remember that franchised businesses only got that way because they were successful from the beginning – successful enough to secure capital to franchise the business. Therefore, the name recognition of an established brand coupled with the franchise’s system of standards that proved successful means customers and clients will be confident they will receive the same quality of experience or products from your franchise as in any other franchise.
2. A ready-made marketing and advertising plan
Advertising and marketing is often one of the biggest expenses for new businesses. This is because startups simply cannot survive without marketing and advertising, the catch-22 being that effective marketing is often too expensive for new businesses. Franchise systems offer ready-made advertising and marketing plans from the start, which is a huge benefit of buying a franchise.
3. Tried, tested and successful methods of operation
When you start your own business, you’ll likely spend a lot of your time trying and testing different methods of operation. Not only does this waste your precious time, it also has the potential to cost you a lot of money and time.
However, when you buy a franchise, you immediately benefit from the franchisor’s experience and tested operating systems, from training, document standards and procedures, marketing strategies and more. Furthermore, franchisees are able to network with other franchisees in the system, who have been through the same process and can offer advice.
4. A good reputation
A major benefit of buying a franchise is the protected reputation that comes with it. What we mean by ‘protected’ is franchises have their own legal departments who take care of any issues like lawsuits, accidents and so on.
However, the overall reputation of the franchise is also important as it’s what creates positive expectations and keeps customers loyal. Combine this with an in-built umbrella of legal protection and you’ve got yourself an incredible reputation from the start, something you wouldn’t have as an independent business owner.
5. Ongoing support and training
Unless you come from the industry you are wanting to buy a franchise in, chances are you will need some sort of specialised training. Most franchises offer their franchisees comprehensive training from the start, and the best franchises offer ongoing training and support over the lifetime of the franchise.
The thing to remember is, franchisors want their franchisees to be successful, and in order to do this they need to make themselves readily available every step of the way. That’s why you can be sure that when you buy a franchise, there will be a helping hand every step of the way.
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