9 Reasons To Buy A Franchise

 

  1. A recognized name and logo. In a recession, it helps if your prospective customers already know who you are and what you sell! That's not always the case, of course. It's one thing to buy a McDonald's or other franchise - highly recognized name brands and logos. It's quite different when buying a new franchise that has only a "hand full" of  outlets. That's not to say that there's anything wrong with buying into a new franchise. Even McDonald's started with one franchise!
  2. A proven operating system. Someone has figured out how to run the business successfully, that is, profitably and in a fashion that the owner/operator finds satisfying. There's tremendous value in not having to re-invent the wheel, especially when you don't have extra capital to spend. The lack of a system, in fact, is the major reason new businesses fail. What you're really buying with a franchise is a PROVEN SYSTEM. You just need to be sure that it's in fact proven!
  3. Marketing and sales systems. Every business sells something, whether it's a product or service. MOst of the time, people are good at making the product or delivering the service, but they're not good at marketing and sales. Good franchises solve that problem for the you - franchisees. Once again, you just need to be sure the systems have been tested and are proven to work successfully.
  4. Capital investment that may be less than starting a similar business independently. By the time you come up with an idea, test it, develop operating-marketing-sales systems, hire people, find a location, source equipment, etc. You will realize you have already spend a fortune to create the business. Unless you are poassionate about something which is not already there, you can save yourself a lot of time and trouble by investing in a franchise. It's not always true. Sometimes you can start the business independently for less money, but what do you have? The brand you didn't buy is now your competition. How well can you compete?
  5. Financial assistance. Again, this isn't always true. And with today's credit crunch, it may be less of a factor. However, some franchisors do loan money to franchisees. Plus, lending and leasing institutions are often more inclined to loan money to a franchisee than to someone who's starting a similar business independently. Why? Because franchising has proven to be a safer way to start a business. Lenders like proven concepts!
  6. Training and Support. The franchise fee that you pay enables the franchisor to provide initial training and some initial support. If the franchisor's training is effective, it alone is probably worth far more than the franchise fee.
  7. Ongoing Training and Support. The franchisor will continue to provide training and support to you for as long as you are a franchisee. As a business grows there are often new challenges that arise. The franchisor's training and support saves you, as a franchisee, from having to go out and learn how to respond successfully to those challenges.
  8. Research & Development. You don't have to be as concerned about the development of new products and services as does an independent business owner. Part of your franchisor's responsibility is to look down the road to the future development of the business and to create or acquire appropriate new products and services, and teach the franchisees how to market and sell those new products and services. There's tremendous value in this advantage alone.
  9. You are one of many. There are benefits to belonging to a network of like-minded individuals and business owners. There's comfort in knowing that others are engaged in building the same business and they are friendly towards you. They'll help you if you ask them. Perhaps the greatest benefit today is cost-savings. If you're one of ten franchisees in a market, your advertising costs may be 1/10th of what your non-franchise competitors have to pay. Plus, you will be able to buy products and services from suppliers for less money because there are more of you buying those products and services. Vendors like selling to franchisees, even at a discount.
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