If you’re thinking of jumping into the business world, franchising may be the best route for you. Just over the last several years, franchising has added nearly one million jobs to the economy, according to the International Trade Administration. Considering the growing level of national franchise involvement, it goes without saying that franchising is a popular, and in many cases, profitable path. As you consider whether to get involved in franchising, consider some of the benefits behind purchasing a franchise.
Franchising has added nearly one million jobs to the economy
The Business is Pre-Established
Starting your own business from scratch is an extremely complex process. Creating an independent business requires tons of research, carefully planned financing, seemingly endless licenses, among numerous other steps and procedures. With a franchise, however, many of the tedious steps are already complete. The production systems are in place and the brand is already established.
A franchise also brings its strong trademark to the table. Establishing brand or trademark recognition requires extensive of marketing and advertisement campaigns. With a franchise, the difficult marketing is already complete. There’s no need to spend time and money introducing the brand to the public. While you should continue to advertise the brand to prospective customers, the worst is behind you.
There is a Lower Risk
Often, a reason a franchisee opts to franchise, rather than open a private business, because there is lower risk associated with franchising. Since the business and trademark are established ahead of time, there is an elementary customer base that your branch will receive.
Not to mention, any kinks in the production process or system are already worked out. An independent business brings a lot of trial and error, which can be costly. With a franchise, the system in place is already fully optimized for efficiency and profitability.
Lower Costs are associated with Franchising
All business ventures, whether franchise or independent business, are an investment. However, obtaining financing for a franchise is often easier for a franchise. Considering the relative reliability and predictable risks associated with a franchise, it is often easier to obtain a loan for your purchase. While you are required to pay franchising fees and royalties, which can vary, it is unlikely that costs will “sneak up on you,” as they may with an independent business.
Franchises come with Resources
Often, franchisors provide their franchisees with a level of assistance in opening their local branch. Not only do franchisors provide educational tools and manuals, but many franchises even have systems in place that help with any conflicts that you may encounter. Other franchisees are another resource that you can use if you need any advice or assistance during the process.