Buying a franchise is an option that many people looking to manage their own small business should consider, as there are a number of advantages to joining this industry. The main benefit of becoming a franchisee is that your business will already have in place the knowledge and experience of the franchiser that has enabled it to expand, which provides each franchise with a solid business platform.
The brand name will be known across the country or region and potential franchisees can also check the success of the franchiser and its reputation before making a firm commitment.
Systems such as product pricing, recruitment and marketing will be tried and tested, and any early mistakes will likely have already been ironed out. Therefore, this reduces the risk of failure compared to someone starting their own small business on their own.
Financing the new business will be easier for the majority of franchisees, as banks will take into account the franchiser's reputation when it decides whether to lend money.
Although business processes are set by the franchiser, it gives franchisees the power to run the franchise in a specific area, including promotion, sales and expenditure management, hiring/firing decisions, and many other tasks.
The franchiser can be invaluable when franchisees encounter problems. They can provide the necessary technical support and have qualified staff who can give advice on how to improve sales and deal with staff problems.
In addition to providing training programs for franchisees before they open their business, many franchisers will offer staff training and ongoing services so that franchisees can benefit from new technology and keep up-to-date with financial and personnel regulations.
Obtaining products is much easier for a franchise business, since some or all of the products will be provided by either the franchiser or other suppliers put in place to deliver the goods. Franchisees can often take advantage of bulk discounts as well.
Any successful promotional offers, usually discounts, will be used across all franchises, enabling them to benefit from the probable increase in customers it will bring.
If franchisees would like to sell their business at some stage, the franchiser could have a new buyer lined up quickly, as opposed to the franchisee having to find someone to take over.
Franchising offers people a mix of management responsibility and business security and there are franchises available in a wide range of business sectors.