Why Buy a Franchise?
Why buy a franchise? The benefits of buying an existing, “packaged and ready to go” franchise in a well-designed system can make going into business for yourself much more manageable than an independent startup. By eliminating much of the hard work, like choosing a territory, finding a location, negotiating a lease, finding reliable contractors, and establishing vendor relationships, investing in a franchise is investing in a more profitable future.
There are countless reasons for why buy a franchise. Here are a select few to help get you started down the franchising path:
- You’re your own boss, which means you can never be laid off. Joe Libava, FranchiseKing.com franchise consultant, says, “Becoming a franchise owner is a great way to avoid ever having to deal with a tough job market ever again.”
- Much of the risk is eliminated. Cheryl Babcock, director of the International Institute for Franchise Education at Nova Southeastern University points out that there is “buying power and efficiencies of scale in the franchise system. The franchisor can negotiate lower prices for the products and services you need to run your business.” Babcock is also, though, quick to say, “You need to be motivated and willing to put time and energy into your franchised business, to make your investment pay off, and you must follow the franchisor’s system down to the letter.”
- Franchises come with a strong brand and track record of success. One huge advantage – arguably the biggest advantage – of franchising is that the company you’re investing in is already building its brand, and it’s doing so on a large-scale basis. When you’re looking at operations, a good franchisor has already developed a proven process of doing business, and they’ve done it in a way that yields successful results. The franchisor will provide you with a good amount of information upfront in requisite disclosures so that you can chat with existing franchisees prior to making your final decision, and verify all the results.
- Franchises come with marketing assistance. Franchisors typically provide marketing assistance to franchisees, which means proven tools and strategies for attracting and retaining customers. This often comes in the form of websites, search engine optimization, and marketing collateral like business cards and stationary.
- There’s already a proven system in place. When you buy a franchise, you’re buying a system. You’re buying an entire method of doing business. Franchises have long ago established systems and put processes into place that you must follow to distribute/sell the franchisor’s services/products using those trademarks and service marks. Having this proven system already in place really helps to eliminate the guesswork that comes with owning and operating independent startups or other small businesses.
- You start out with a higher likelihood of success. Deciding to become a franchisee is very different from deciding to start your own independent mom-and-pop shop. Simply put, there’s a higher likelihood of success because there’s already an established, proven system in place.