Buying a franchise offers are variety of benefits, such as instant name recognition and a customer pool that is already familiar with and attracted to your products or services. This can make it much easier for your business to succeed. When you own a franchise, you are in business for yourself, but not by yourself:
- Established Reputation. Your franchise will have an already establish reputation, giving you access to a pre-sold customer base which would ordinarily take years to establish.
- Training & Support. Franchisors usually offer initial and ongoing training and support. If problems arise, franchisors generally will give advice and assist you in solving the problem, because their success depends on yours, and vice versa.
- It can be easier to get financing, because lenders take into account the franchisor’s experience and reputation when deciding whether or not to lend you money.
- Marketing Assistance. Franchisors are usually in charge of national and regional brand advertising and marketing. Because effective advertising is generally expensive, pooling advertising funds among all franchisees gives you nationwide exposure at a significantly reduced cost.
- Buying Power. Your cost of goods sold can be significantly lowered, because you usually have to purchase inventory from the franchisor directly or from franchisor approved suppliers. This gives franchisors the power to negotiate discounts for buying in bulk that are passed on to you.
- Proven System. You can save yourself the trial and error phase when starting and developing your business, because you will operate under a well established system. Any issues will have been ironed out by the franchisors when they first established the business, and they will keep improving the system continuously.