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These are some of the advantages of buying a franchise.*
Low Risk - The U. S. Commerce Department estimates that 95% of franchises succeed; only 25-35% of independent businesses succeed. Why the difference? Since a franchise is usually a duplicate of an already successful business, it should succeed.
Quicker Startup/Higher Sales/Higher Profit/Increased Equity - When a person buys a franchise he’s getting startup support and he’s buying the “learning curve.” As an alternative, if he were to start a similar independent business it would take longer to achieve the sales volume associated with buying a franchise. The trial and error stages have already been done by the franchisor and as a result, profits and business equity are built faster.
Be One’s Own Boss - Franchising allows an individual to feel the pride and independence of owning his own business.
Training - The training an individual receives in a franchise should help him avoid mistakes and generate more volume and profits.
Support/Ongoing Assistance - Ongoing support gives a franchise owner quick access to help solve problems and a feeling of not being alone.
Collective Buying Power - Collective buying power should help reduce costs of doing business.
Regional/National Marketing - A chain of operating units can afford to generate far more exposure and advertising than can an independent, resulting in higher sales volume.
Systems/Policies/Procedures Already Tested And Established - Tested and proven systems save development time and help prevent mistakes.
Trademarks - Customer awareness of the franchise name is a tremendous benefit.
| U.S Commerce Department success comparison of Franchised vs non-Franchised Businesses |
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Mutual Destiny - The success of the franchise owner is in the best interest of the franchisor.
Research And Development - The franchise owner can utilize the research and development performed by the franchisor. This saves valuable time and capital.
Your costs are known - The franchisor can be tell you what your costs will be.
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“The risk of failure is reduced when the franchise starts up in
business under a successful name and receives helpful training and
management assistance from experienced personnel of the franchisor.” |
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Entire Franchise Packet (56 KB / 10 pages) |
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