Dedicated business model . Any good franchise company has developed a method of doing business which works well and which maximises the outcome for its franchisees. Some brands have been established for a while and have developed a successful formula to guide their franchisees.
Strong Brand. A major advantage of franchising is that the company has or is building its brand awareness/equity which will in turn benefit its franchisees. Such brand awareness will often be near impossible for independent new startups to achieve.
Training Programs. Generally you will benefit from upfront and ongoing training with the assumption that you have never been in business. Successful franchise companies will have training programs which will assist you to successfully operate your business. Typically both theoretical and practicle training will be provided as well as full onsite support during the initial period after you open for trade.
Ongoing Operational Support. Franchise companies will have operational staff employed to provide their franchisees with ongoing support and to assist you in maximising the opportunity in your business. Franchisors will typically monitor the performances of their franchisees so that any issues can be identified early and solutions put in place. The experience of a franchisor will be invaluable for franchisees who take on board the advice. Working with your franchisor to achieve the best out of your franchised business will make life a lot easier and also achieve the best financial results.
Marketing Assistance. The franchise company will also provide you with local and national marketing support with the objective of maximising your business revenue. Tried and tested marketing programs will help you to grow your business over time and grow your profitability in the end.
Leasing support. Most franchisors will help you to secure location options and also negotiate the best possible lease terms. A professional leasing manager/agent is appointed to maintain your lease and also work with you to renegotiate the terms when it’s time to renew.
Design and construction: Franchise companies will typically provide the design and build your store. A good brand will have existing design criteria and this can be adapted to your site easily and effectively.
Existing Supply Chain. A good franchise will have an established and effective supply chain in place which you will tap into. Much of the stress and risk of establishing such suppliers will be maintained by the franchisor so that you can focus on running your business day to day.
Reduced risk: Whilst all business ventures have commercial risk , arguably one of the biggest reasons for buying into a good franchise is that, it will help you avoid much of the risk of starting a new business. That is if you follow the systems and procedures and advice given to you .It is important to research the opportunity carefully and seek the professional advice of an accountant/business advisor and a solicitor during this process.
Lower Capital requirements. Banks are more prepared to lend for a proven franchise business then for an independent business