Why Franchising – 5 Advantages to Buying a Franchise
If you have business ownership on the brain, you may find yourself amidst the battle between whether starting an independent business or buying a franchise is the best option for you. Both paths provide the undeniable pride and hard work of being an entrepreneur, but there are certainly some reasons that many people opt for the latter approach. In fact, according to the International Franchise Association there are over 780,000 franchise establishments in operation, meaning many entrepreneurs have been exposed to the benefits of franchising.
Before we dig too deep, let’s start with the basics – what is the difference between a small business and a franchise anyway? In both cases, you’re a business owner selling products or services, hiring staff as needed, generating income, etc., but in the franchising model, you’re not developing your concept from the ground up. Rather, you’re buying into a business model developed by someone else (a franchisor) who has already established the operations systems and owns the overall brand. In turn, as a franchisee, you pay the franchisor a royalty fee (typically a percentage of your revenue) for use of the brand, support, and resources provided to you to run your local business. In short, all franchises are businesses, but not all businesses are franchises.
Still with me? With that clear, let’s look at why so many people choose franchising as their preferred form of business ownership.
5 Key Advantages to Buying a Franchise
#1: Take a pass on creating a brand from scratch (it’s already done!).
One of the greatest advantages of franchising is that you’re buying into an established brand – one that already has awareness and a strong reputation (assuming you are choosing wisely). That means it’s ok if you’re not one of those creative “left brain” people. You don’t have to worry about hiring a pricey advertising agency, developing an eye-catching logo, picking the perfect color palette (should you go with the energy of red or the power of purple?), finding a great name that isn’t already trademarked, or with going through the hassle of the trademarking process. It’s already done…and paid for. You just saved thousands that you can instead put toward marketing that good-looking branding.
#2: You’ve already got all the answers (well, maybe not all, but a lot!).
Another reason franchising is a good idea is that you’re buying into an idea and model that’s already been fleshed out. Save the time an independent business owner would have to put toward finding the right software, email and accounting platforms and building relationships with key vendors. Instead, start armed with great resources for marketing and tracking the key performance indicators for your business and benefit from the buying power and already established relationships with vendor partners. No need to reinvent the wheel here. With systems already in place, you will be ready to open your doors and start generating revenue faster. Save time and minimize risk, as many of the issues a new business owner would typically face have been ironed out many times over through the experience of your franchisor and fellow franchisees.
#3: Be in business for yourself, but not by yourself.
If you’ve explored franchising in the past, you have probably heard this phrase already, but it’s such an important aspect of choosing a franchise business. After all, becoming your own boss and starting a business means exploring some uncharted territory for yourself, and that can be intimidating and overwhelming…even lonely at times. Not in a franchise system. As part of a franchise, you are partnered up with a corporate team that typically offers experienced marketing, operations, and finance staff. You can expect to be armed with a business coach to teach, guide, encourage, and push you throughout the life of your business. You still have to work hard, but you don’t have to know it all from day one – and you’re certainly not alone.
#4: Become part of an extended family (that you have more in common with than sweet Auntie Doris).
We can’t choose our family – but in this case, you can choose your franchise family. If you find a franchise system that aligns with your values and exhibits a culture you embrace, you’ll find yourself surrounded with an extended family of like-minded business owners. Many franchisees name this networking aspect as one of the best attributes of franchising. Whether you have a question, need advice, want to celebrate a small victory or need to blow off some steam with someone who can relate, simply pick up the phone and call a fellow franchisee. Before you know it you’ll have friends in every state across the country!
#5: The business options are limitless!
There are SO many options when considering franchise opportunities and determining which is the best franchise opportunity for you. No matter your investment level, your passions, your geographic location – with the right amount of research you are sure to find a good fit. Restaurants can be an exciting endeavor for many entrepreneurs, but they tend to come at a high price tag. However, there are many low-cost franchise options, particularly those that allow you to work from home and don’t require a large real estate investment. Do you like to be outside? If so, perhaps a pool cleaning business or landscaping business is a good fit. Are you passionate about health and nutrition? Maybe a fitness or massage franchise sounds appealing. If you want some time off throughout the year, a seasonal business could be a great fit, while a year-round business model is ideal for those looking for more consistent revenue month to month. You get the idea.
In short, with franchise ownership you don’t have to start from square one with your business, so you can get off the ground and grow faster. While there are certain expenses an independent business owner may not incur (i.e. royalty fees), these are countered by the support, experience and buying power of being part of a larger brand. That said, it’s very important to do your due diligence in exploring franchise opportunities so that you can find the concept that makes you excited to get up and go to work in the morning. Now get exploring!
And if you’d like to pair your love of the outdoors with the above franchising benefits, give the Pool Scouts franchise opportunity some consideration! Want to chat with us directly? Shoot us a note at firstname.lastname@example.org or give us a call at 1-844-407-2688.