Ready to take control of your future and become a business owner? Franchising can be the perfect way to do just that!
10.5% of businesses in the U.S. are franchises – that’s more than 780,000 businesses! There are lots of great reasons why franchising is the way to go for entrepreneurs who want all the pros of succeeding in business without any of the cons. You’ll be investing in an established and successful brand, gain immediate access to a powerful, supportive network and the resources of an already successful business.
This quick guide will provide you with an overview of the amazing benefits of owning a franchise and why it sets business owners up for success. Let’s dive in!
1. Access to established brands and reputation
Franchising gives business owners the perfect opportunity to get their own business up and running quickly with an established brand name and reputation. People already trust established names like McDonald’s, Subway or Dunkin’ Donuts. So if you open up a new franchise, you won’t have to worry about building brand awareness, getting customers through the door, as the customer base already exists. It means you can hit the ground running and start generating revenue right away without having to build up customer loyalty from scratch.
But franchising isn’t only for major corporations. There are plenty of smaller franchises available as well that you can get involved with, such as Scooter’s Coffee, The Little Gym, Fitness 19, or even here at Pinspiration. Smaller franchises can be just as successful as more established brands because they offer a unique product or service to a specific niche market.
2. Proven business model and operating system
Another huge advantage: business owners have access to a proven business model and operating system that has already been tested and refined to ensure success!
Rather than having to do lots of audience research, figuring out a product-market fit and working out a business strategy from the ground up, franchise owners skip ahead and get to work immediately. That’s because franchisors have already done the legwork of setting up business plans and systems that are tailored to their particular business.
This process of trial and error can be time-consuming and expensive, and when starting a business solo, you may not have the necessary resources, time or skillset to get it right. That’s one of the reasons about 90% of startups fail. Fortunately, franchising can help you avoid all the hassle by providing you with a proven strategy that has already been tested and tweaked to ensure a high-growth potential.
3. Marketing and advertising support
Franchisees don’t just buy into a business model and brand recognition – they’ll also get comprehensive marketing support! This is especially important if you don’t have a marketing background, have no experience with paid advertising, and no clue about what it takes to set up a campaign. That’s totally okay.
While the budget for marketing will come out of your initial franchise and ongoing annual investment, franchisors will provide detailed information about the best ways to target a particular audience, allowing franchisees to tailor their messaging for maximum impact. By taking a targeted approach, franchisees can maximize their marketing efforts, reach more potential customers, and improve the overall success of their business.
4. Mentorship and guidance
Joining a franchise can provide business owners with access to mentorship and guidance, which is often not available when starting a business on their own. By becoming part of a franchise network, business owners have the opportunity to connect with other franchisees who have already been through the same process. These franchisees can offer valuable advice and insights, helping new franchisees avoid common pitfalls and make the most of their investment.
There’s another great benefit of being part of a franchise network: it provides a sense of community and belonging that can be difficult to find when starting a business solo. Franchisees can share their experiences, collaborate on best practices, and support each other through the ups and downs of running a business. This camaraderie can be a powerful motivator and can help franchisees stay focused and motivated as they work towards their goals.
5. Access to established suppliers and vendors
Relationships with suppliers and vendors can take years and a lot of relationship management to build, so by joining a franchise, you’ll essentially be taking a shortcut. This advantage is especially beneficial to business owners starting out in the industry who don’t yet have the resources or relationships necessary to form partnerships with suppliers and vendors.
But it’s not just having those relationships in place that will help, but the favorable terms and prices you’ll get access to. Franchises will typically have access to corporate rates through the established vendor relationships. This allows them to save money on the cost of supplies and services. Plus, it ensures that their customers get the same quality products and services for a fraction of the cost of going solo.
6. Reduced risk – and a higher chance of success!
Starting a franchise is a less risky option for business owners compared to starting a business from scratch. This is because most franchises are owned by established corporations that have tested and proven the business model in multiple markets, reducing the risk for franchisees. This track record of success makes it easier for franchisees to access financing, including SBA franchise loans, to help launch their business.
Why? Because lenders view franchises as a lower-risk investment compared to independent businesses. The franchisor’s established reputation and successful business model can provide reassurance to lenders, making it easier for franchisees to secure the financing they need to start and grow their business.
Overall, franchising offers a less risky way to get your business up and running quickly and successfully. You’ll have an experienced team supporting you every step of the way, an established brand to give you an edge over competitors, and access to profitable franchise opportunities. So if you’re ready to take the reins and get your business up and running, franchising is definitely the way to go!