Five Benefits of Franchising for Business Owners and Entrepreneurs
Whether you’re a novice entrepreneur or a seasoned businessperson, it’s always a good idea to learn as much as you can about prospective ventures. If you’re new to the concept of franchising — it is a burgeoning industry seeing healthy growth. According to Statista, there are nearly 800,000 franchise establishments in more than 120 industries right now in the U.S., employing more than 9 million people. Seeing as there are safety in numbers, feel secure in knowing that this is a lower-risk opportunity than starting a business from scratch.
One of the advantages of a franchise is that it provides a safety net of sorts for business owners. For a fee, ranging anywhere from $10,000-$100,000, you are given access to a ready-made, proven business model, a brand name, and comprehensive training to make your franchise successful. Let’s take a deeper dive into the five main benefits of franchising.
Five Advantages of Buying a Franchise
- Simple Model: First and foremost, there’s the simplicity of setting up shop. If you are asking, should I buy a franchise or go it alone and start my own business, the hands-down answer from a simplicity standpoint is go with the franchising option. The franchisor has laid the groundwork, they’ve tested the model and concepts, and all you have to do is follow the recipe, so to speak. The strategies are in place to make your franchise successful.
- Financial Security: Franchising gives you control over your financial security. The popularity of franchising has been growing for decades because of the measurable success of this model. It gained momentum at the start of the pandemic when people were laid off and had few options for employment. Many very qualified business-minded people decided to take control of their financial futures and not be placed in the position again of losing their jobs. They looked to opening their own business for self-sufficiency. The advantages of a franchise are clear — it means lower investment for potentially quicker startup and profitability. Control over your financial security also means you control your own success.
There’s that old expression, you get as much out of it as you put into it. A very true statement for franchisees. You are responsible for your salary raises and promotions, based on your own hard work. Your business success is directly related to how passionate you are about succeeding.
- Passion for Profit: That passion can lead directly to profit. It’s important when choosing a franchise to partner with one that you are interested in or care about deeply. It’s always good to choose a franchise that aligns with your beliefs and interests. Businesses are more successful when there is enthusiasm for what you’re doing. You typically want to buy a franchise that fits in your wheelhouse to have every advantage going into business. Although no specialized background is required for many franchises, a background in business, sales or marketing is always helpful.
- Training and Support: Franchisors have comprehensive training that franchisees attend to help with everything from choosing a location for their business to staffing, sales, and their grand opening. The training does not end when the ribbon is cut; you will receive ongoing support for any questions you may have about day-to-day operations.
You pay initial fees and franchise fees that are much less expensive than if you were opening a business from scratch. Often, in fact, working with a franchise brand means you may have better chances of obtaining financing for your business venture.
- Marketing: A critical component to your business is marketing. In a startup, you would have to hire a team or do all the promotion of your business alone to try to get customers. In franchising, that is all taken care of. There may be an ongoing royalty fee you will need to pay monthly to receive advertising for your franchise. Without it, you would struggle to get foot traffic, making it impossible to make a profit.
Disadvantages of Franchising
Franchising is about business ownership. Look at it as independence with guidance. It is a great way for first time business owners to get their feet wet or seasoned veterans to enhance their portfolio. The disadvantages are also the franchise model’s biggest strength. Franchising is about following a proven concept, but for some entrepreneurs that does not provide them with enough wiggle room or freedom to be creative.
Another point to keep in mind is that most franchisors will expect you to be part of the day-to-day operations. If you are looking at a franchise opportunity strictly as an investment, that might be farther down the road for you after you get your business rolling.
Making your Franchise Opportunity Profitable
For the most profit potential, look for companies with longevity, sales growth and unique opportunities.
That’s what we are all about at Allegra Marketing Print Mail. We’ve had a successful business model in the printing industry for 30 years. Allegra Centers provide graphic design, printing, mailing, promotional products and marketing services, which are needed by virtually every local business and institution. We have two franchising opportunities. You can become a Franchise Member through acquisition or conversion.
As an owner, you’ll benefit from the unsurpassed network support provided by Alliance Franchise Brands – our parent company and a world leader in marketing and visual communications.
We want to help you with your business ownership goals. Just download our brochure, Opportunity Awaits, and let’s get you on the road to franchising.