With more people opting to use franchise when they want to go into business, the franchise business is going strong. Franchise broker firms are making it even easier for firms to sell their franchise. Most of the top franchises in the world as of June 2019 are companies based in the USA. The rest are in Canada, Spain, France, UK, Japan, Germany, and Sweden. Some of these topfranchises in varying industries include McDonald’s, Jani-King commercial cleaning services, Carrefour and more.
When you buy a franchise, the franchisor expects you to pay an initial price and re-current royalties as per the agreement. Below are some of thebenefits of owning a franchise.
- Initial and ongoing training and support
To ensure the success of your business, franchisors offer you lots of support. Some franchisors will give you financing and select the best location for you. You also receive operation manuals detailing how you should run the business. The manual could include rules and standards to follow with when staffing and determining the quality of products to offer.
Franchisors offer training before the start of business. They also provideperiodic training and seminars to ensure you are running the business as required.
- A higher success rate
The success rate of companies started through a franchise is high for several reasons. First, the business will use tried and tested methods of management. Secondly, the business will enjoy the image and reputation of the franchisor’s company.
Brand image is essential, especially if you are an entrepreneur who wants to introduce an innovative product. You can attain quick market leadership before competitors join in with similar competing products. With the advantage of national advertising, a characteristic of reputable firms, you will effectively penetrate the market with ease.
- It is easier to secure finances to buy a franchise
If you are starting a small business the traditional way, you will face the capital barrier. The case is different when you want to buy a franchise. Many lenders will be open to finance you because businesses started through franchise are more likely to succeed. They leverage on brand image and success.
- You get to leverage the existing franchise network
Networking is essential for business success. When you buy a franchise, you get into an already established network. You can leverage the existing franchise network by attending annual conferences and joining internal social media groups to get the latest news and updates. Additionally, you can benchmark against similar businesses in Peer Group Performance Programs. You can also organize meetings with members of your franchise system to share ideasand discuss challenges and successes.
As an entrepreneur, you can also choose to buy an existing franchise from a third party, rather than opening up a new store in a new location. Acquiring an existing franchise grants you the advantage of having an established customer base, employees, and a lower initial investment. Ensure that the business is performing well before making a purchase.