Think about it. You can barely go anywhere without running into a franchise. Need tires on your car? Maaco and Grease Monkey are good options. Need your haircut? You’re probably familiar with Fantastic Sam’s or Great Clips. Need a gallon of milk? It might be convenient to visit 7- 11. It’s almost time to get your taxes done … consider H & R Block.
So why is franchising so popular?
- A well-established business model. A franchise gives you a blueprint for achievement similar to a turn-key approach. The Franchisor works out the kinks — the ideas, brand, accounting system, site location, and products have already been tried and tested and rolled out in a consistent fashion. That means less trial and error for you. Independent, non-franchise businesses have a much higher likelihood of failure within their first year than franchises because they have to start from scratch.
- Ongoing support. Franchises provided continued management guidance, administrative support and training. As new products or services become available, management does the leg work.
Financial assistance. It’s much easier to get financing for a franchise than a business startup. Banks are more willing to lend money to a business with a secure brand and effective support structure behind it.
- Checks and balances. When starting a new business, it’s easy to get off track because it can be overwhelming. A franchise provides ongoing support, making sure you focus on what’s important.
- National marketing. Many times franchisees benefit from national advertising and PR campaigns which promote the brand.
With the economic downturn seen in recent years and the number of people who are suddenly losing their jobs, franchising becomes more and more desirable. It’s important that you choose a franchise that is right for you – what may be an advantage to one person, might be an advantage to another. Next, we’ll explore what to look for in a franchise.