When it comes to buying a franchise and operating it as your own brand, entrepreneurs often face a conundrum and question their decision. Even though buying a franchise has some disadvantages such as losing an opportunity to build your own brand name and the inability to make 100% profit, the multiple advantages overshadow the cons. Here is how you can benefit from being a part of a recognizable franchise.
1.Achieve Success in Less Time
If you start your own business, it will take some time to garner attention and gain a reputation. On the contrary, a franchise with multiple outlets in various locations has a successful track record, which helps you gain confidence. You can gain tips from the franchise headquarters and corporate offices and learn more about growing your outlet’s system in less time. The franchisor will always be happy to answer your questions and even send field staff to support you during the initial phase. To achieve success in less time, follow the footsteps of the franchisor to run your business using the same system.
2.Well-Established Brand Image
Since most successful franchise businesses have a well-established brand and corporate image in place, you can simply focus on setting up a similar system and running your business. Since the franchisor has already spent a lot of effort and time behind creating their brand logo, colors, and identity, customers can easily recognize the brand and are comfortable in interacting with the products and services. As a result, you can save a lot of time, money, and effort that is needed to build a brand image. Most franchises allow business owners to make little changes to their outlets unless they retain the brand image. This gives business owners the freedom to make their outlet stand out while still incorporating the brand image for the customers to relate.
3.Get Promotional and Marketing Support
Famous franchise companies already have a strong marketing and promotional strategy in place, which makes marketing your outlet easy for you. Your franchisor already has a Brand Fund or Advertising Fund that covers the cost of marketing and advertising your franchise. You may also have a well-established and strong online and social media presence, which makes the marketing extremely simple for you. The franchising experts at 7-Eleven franchise recommend acquiring a well-laid out marketing plan from your franchisor to promote your outlet. It should contain the marketing outline, material templates, vendor contacts, graphics, and other necessary details.
When it comes to setting up a business system, many entrepreneurs take a step back as the process can be overwhelming in the beginning. However, with franchises, you can peek into the established system and take maximum benefit from it. You also receive special training from the franchise headquarters or corporate offices that expect you to run your outlet in a specific manner. This not only makes the process easier but also provides answers to doubts related to running a business. The trainer will provide a step-by-step drill to run your business. In this way, new and aspiring entrepreneurs can learn how to set up and run a business from scratch. Since they are also earning a profit from your business, they will ensure that your outlet is operated in the right way. They will also help you out in every step, thereby making it easier for you.
5.Higher Profit Margin
Even though you need to pay a part of your profit as royalties to the franchise, the profit margin will still be comparatively higher than your personal business. With an established operating and marketing system in place, you will attract more customers in less time, which will result in a higher profit margin.
6.Get Investments Easily
Since most franchise businesses have already proven their worth, it will be easier for you to gain investment. The proven track record makes it easier to convince the investors who are ready to invest without putting a second thought.
Since the repayment default is lower with successful franchises, the process of getting an investment can take as little as a week. This also allows you to set up your business at a quicker pace. Some bigger franchise houses also have fixed or in-house investors or financing options that help new franchise owners to set up their business. Certain initiatives provide discounts and reliefs to business owners with special needs and positions.
As you can see, these benefits make setting up and running a franchise business worthwhile. You will not only gain training guidance but also benefit from the established brand success. When choosing a franchise to conduct business, look into several options and compare their success rates to make an informed decision. The key to succeeding at owning a franchise business is choosing a brand that you believe in as it leads to higher productivity.