Whether you own a McDonald’s or a lesser-known franchise brand, franchising is a unique business endeavor. You are a business owner, but expected to follow the franchisor’s proven business model. You are responsible for your own success, but supported by your fellow franchisees and franchisor.
You may well be wondering if you should start a business from scratch or invest in a franchise. According to the International Franchise Association, there are 780,000 franchise establishments that produce $890 billion of economic output for the U.S. economy, which makes one thing clear – franchising is a path many people take. Let’s take a look at some of the reasons why.
When you buy a franchise, you’re not only buying an established brand name, you’re buying into a proven concept and business model. You’ll be able to follow the company’s roadmap in bringing your business to market, and tap into an established brand and customer base.
Pre-Opening and Ongoing Support
The franchisor provides you with pre-opening support including training in how to set up and operate the business. Typically, you’ll also be assisted with site selection and your grand opening depending on the type of franchise you purchase. You’ll continue to be supported by your franchisor through ongoing training, marketing, R&D, purchasing and more as long as you are a franchisee.
One of the greatest assets of any franchise opportunity is the community of franchisees. You’ll have access to a group of owners from whom you can get business advice, learn tricks of the trade, and receive moral support. Cooperation between franchisees is a critical component of success. The best franchise companies foster these relationships through annual conferences, regional meetings, online communities, and regular conference calls.
As a franchisee, you benefit from many things the owner of a start-up does not have access to or would have to pay quite a lot for.
As a franchisee, you benefit from many things the owner of a start-up does not have access to or would have to pay quite a lot for. The most important is that you have a proven road map to success to follow. In addition, your marketing costs are shared and your franchisor negotiates bulk-purchasing rates that are passed on to you. You are also provided with support in multiple areas including marketing, training, and IT. If you had your own business, you would have to pay contractors or staff to fulfill these roles. In addition, you may need less capital to get the franchise going than you would if you were starting your own business since the business model has already been proven and comes with a detailed blueprint to get it off the ground.
Are You Ready to Be Your Own Boss?
Franchise Business Review’s research shows that many franchisees feel entering franchising was the right choice for them. When asked if they enjoy operating their business and if they would “do it all over again”, 89% of franchisees said yes
If you do want to be your own boss, Franchise Business Review’s list of top franchises is a smart place to start your franchise search. It only features franchises ranked highly by those who know everything about them – franchisees who own them.