The Best of All Franchising Advantages
A common phrase to describe the best of all franchising advantages is “In business for yourself, but not by yourself.” This means that a person enjoys all the benefits of a business owner, but with the support matrix of successful parent company behind them. It is, literally, the best business concept in operation today. Small wonder franchising continues to grow as a popular business model.
An individual assumes a large amount of risk when they work to launch a startup business all alone. Let’s face it – building a new business is hard work. According to the Small Business Administration (SBA), “about one-fifth of business startups fail in the first year and about half of all employer establishments succumb to business failure within five years. Only about one third survive ten years or more.”
While there is a certain amount of risk with any startup business, the franchising advantages inherent in the model can help practically anyone become a successful business owner. Investing in a franchise dramatically decreases the learning curve for the new business owner. Franchisees don’t have to reinvent the wheel or spend time in costly trial-and-error experiments to learn what works for their business.
As a franchisee, you get to enjoy being your own boss, but within the safety cage of an already-successful parent company system. Your parent company has already demonstrated that their products and/or services can be profitable. As their franchisee, you get to share their successful formula as well as enjoy their ongoing support to help you become a success.
Consider the following advantages that stem from this best of all franchising advantages, the partnership you enjoy with your parent company.
Your franchise business will benefit from product recognition. There is no period of uncertainty when you strive to gain a market desire or need for your new product or service. You have the huge advantage of offering a product that has already been marketed successfully for years. When you invest in a franchise business, you are purchasing the rights to sell a product or service for which, in most cases, a large demand already exists.
As a franchisee, you directly benefit from the parent company’s ongoing marketing programs. This doesn’t mean you cannot create your own marketing campaigns. But the marketing campaigns professionally created by your parent company allow you to simply use them and benefit with little or no effort. This saves you valuable time and advertising dollars. This is a win-win for both you and the parent company. It helps spur sales for your franchise, which, in turn, allows the parent company to collect more fees.
Most parent companies divide up territories in targeted areas in order for their franchises to have the best possible chance of success without competing over the same products or services. These territories and how they are determined will vary between different companies and industries. But not having to compete with other franchisees within your locale is a huge benefit.
Most parent companies offer a tremendous amount of invaluable support and training for their franchisees. Initial training provides you and your startup employees the chance to learn the parent company’s successful processes firsthand. Ongoing support options could include a help center for accounting questions, assistance in paying for supplies or marketing materials, and advanced training for employees.
An integral part of any business is supplies. Most businesses must spend time evaluating suppliers in order to find the ones that can offer the best deals on what your company needs to operate. Most parent companies have supplier agreements in place that allow you reduced prices for the products and supplies you need to operate one of their franchises. This saves you money and helps make your business even more profitable.
Parent companies and active franchisees can testify to the shared success that both enjoy as part of this special relationship. The mutually-beneficial partnership between a parent company and its franchisees is truly the best of all franchising advantages. All other benefits grow out from it.
Are you ready to explore the opportunities and franchising advantages that are available to you? Franchise Guardian can provide help for every step of the process. Call or contact us online today for more information or assistance.