We all want to find success, but for many entrepreneurs, success is an elusive being that often seems to slip through the cracks. But what if there was a way to skip the hassle of having to establish your own brand, learn through trial and error how to market your business and spend years creating the ideal business model?
If starting a profitable business completely from scratch sounds like an insurmountable obstacle, franchising may be the ideal route to take. There are many franchise benefits that privately owned businesses just simply cannot match.
What is a Franchise?
Before we discuss the benefits of franchising, it’s important to understand the franchise model. When an entrepreneur buys a franchise, they are buying into an existing and often highly established brand with a proven track record. Along with that all-important brand recognition, entrepreneurs receive valuable training, recommendations on where to open their location, expert marketing advice, and access to proprietary technology.
In return for this unbridled access to an established brand, franchisees agree to pay a royalty fee percentage every week, month, or year. The royalty fee typically falls in between 5 and 10 percent of gross revenue but can vary. Franchisees must also agree to uphold the values and practices of the franchise. As you can see, through this agreement, entrepreneurs gain access to a large customer base and will likely start producing a profit in a much shorter time period.
The Benefits of Franchising
There are several key benefits of franchising that make the franchise model superior to others.
Excellent Brand Recognition: As we’ve outlined above, one of the main franchise benefits is the opportunity to take advantage of brand recognition. Franchisees who purchase nationally recognized franchises need not fret over marketing and educating the local customer base about their product. As the ghosts in “A Field of Dreams” say, “if you build it they will come”. Franchisees who purchase brands like McDonald’s, Midas, and Dunkin’ can rest assured knowing the customer base will arrive on day one.
A Strong Parent Company: When entrepreneurs partner with a strong parent company like the ones listed on the last bullet point, brand recognition is not the only franchise benefit. The parent company passes on its massive wealth to its franchisees by providing valuable technology at cheaper prices. Inventory and supplies come at lower prices than if the entrepreneur ran an independent company. As such, franchisees have a greater chance of maximizing their revenue and earning a stronger profit at the end of the day.
Profit: Speaking of profit, one of the most attractive franchise benefits is the opportunity to enjoy a healthy profit for years to come. Due to the immense brand recognition that many franchises carry, franchisees often enjoy a much larger profit than when operating their own independent businesses. This higher profit ensures a much higher return on investment (ROI), a term in business that all entrepreneurs analyze before making an investment.
Expert Support: It’s best to view the path to success as a long and winding staircase rather than an escalator. No one can guarantee rapid success, but the franchise model typically places entrepreneurs a little higher up the stairs than other models. One of the many invaluable benefits of franchising is access to expert support. Franchisees gain access to a team of expert marketers, real estate veterans, IT veterans… the list goes on. Franchisees also reap the benefits of the parent company’s national marketing campaigns. In many cases, franchises are indeed a turnkey operation – meaning entrepreneurs are provided with the proper equipment, training, and supplies to make their dreams a reality from day one.
Start The Process of Owning a Franchise Today
The benefits of franchising are numerous and exceedingly attractive for entrepreneurs from all backgrounds. Entrepreneurs can skip the line of financial hardship and enjoy small business success from day one. AskMrFranchise.com lists hundreds of franchise opportunities in several categories that make it easy for entrepreneurs to find the ideal business. You can find the right franchise today and start enjoying the benefits of franchising like many entrepreneurs have for decades.