Why Franchising is the IDEAL investment
Franchising is a popular path to business ownership, contributing more than $890 billion of economic output for the U.S. economy, according to the International Franchise Association. Let’s take a look at some of the reasons why franchising is an ideal way to become a business owner.
Aspiring entrepreneurs everywhere often fail to bring big ideas to fruition due to feeling overwhelmed and confused. If you’ve never launched a business, it’s impossible to know the most important move to make first. Franchising means bypassing this paralyzing obstacle and following the proven blueprint of your franchise.
When you invest in a franchise, you’re getting: An established brand name, a proven concept, and a successful business model. You follow the company’s roadmap in bringing your business to market, and tap into an established brand and customer base.
Business Support, Marketing Support, Moral Support
The franchisor is kind of like a built in coach that is totally invested in your success, providing you with pre-opening support and training in how to set up and operate the business. Often, 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 best things about any franchise opportunity is the community of franchisees, a concept that TeamLogic IT explains well in their "Why Now is the Time to Invest" video. You have access to a group of owners where you can get business advice, learn tricks of the trade, and receive moral support. The best franchise companies foster these relationships through annual conferences, regional meetings, online communities, and regular conference calls.
On top of the accelerated business blueprint, your marketing costs are shared and your franchisor negotiates bulk-purchasing rates on your behalf. You’re also provided with support in multiple areas including marketing, training, and IT (versus having to pay contractors or staff to fulfill these roles on your own).
Rate of Return
The best franchise businesses offer a much higher return compared to other franchises and local “mom & pop” competitors. In fact, our research shows that the franchise brands on the top of our awards list consistently outperform - with franchisees earning annual incomes 15% - 20% higher than other brands.
In a nutshell, what all of this leads to is a greater likelihood that you’ll be able to sustain your business compared to when you go it alone. Since return on any investment tends to increase over time, franchising is an ideal avenue for aspiring entrepreneurs!