Nowadays, franchising has become increasingly popular with many business owners. MacDonald’s, Starbucks, Subway and KFC are some of the companies that have allowed business owners to open franchises all over the world. Starting a franchise has several advantages:
1. A Proven Business Strategy
Most franchises have been in existence for years and have been proven to be viable and profitable businesses. When starting a franchise therefore, you are assured of a business strategy which has succeeded over and over before. However, be sure to carry out your own research to confirm the potential of the franchise.
2. Name Recognition
This is one of the major advantages business owners enjoy when starting a franchise. When you start a business from scratch, it usually takes years before your brand is recognized in the market. In many cases, some brands remain obscure and eventually disappear into oblivion. However, having a franchise allows business owners to attain name recognition instantly. Even if people have not heard about if before, they are likely to be drawn towards the brand since it is part of a bigger chain.
3. Assured Quality
Besides the brand name, people are attracted to franchises since quality is assured. No matter the location of the franchise, consumers know that they will enjoy the same quality of products and service. This means that you don’t have to spend too much time convincing people about what you have to offer.
4. Pre-established Supply Lines
Many business owners find themselves dealing with the problem of finding reliable suppliers. Being unable to get quality and sufficient supplies can have a major negative effect on the profitability and growth of your business. However, franchisors already have pre-established supply lines for their franchisees. This saves them the trouble of having to look for suppliers themselves. In addition, the quality of supplies is assured.
5. Training Programs
Organizing training programs for their employees is another challenge which faces owners of startups. Such trainings can be very time consuming as well as costly. Franchisors usually offer such training on behalf of their franchisees to enable employees carry out their work effectively and efficiently. This results in huge savings on the time and money that would have been spent on training. Besides training, the franchisor also provides ready-made procedures and policies which will govern the workplace.
6. Built-in Support System
Most franchisors offer their franchisees management and technical assistance to help in every step of the way as they run their business. This can be very helpful especially for business owners who don’t have much experience in the industry. Therefore, before starting a franchise, take time to find out how much support you can expect to receive from the franchisor.
The strategy for most franchisors is to have one franchise within a specific geographical area. Therefore, starting a franchise means that you will only face competition from different establishments. If your franchise is more popular than the competition, you could reap a handsome profit from your business.
See also: How to Open a Franchise
Have you opened up your own franchise? How did you find the experience? Would you advise others to go into the franchise business? Comments below please.