Many people have the dream of setting up their own business. However, this is rarely an easy task.
If you want to start your own business but don’t want to put everything on the line, have you considered opening a franchise?
But the big question is, how does franchising work in the first place.
If you are thinking about opening a franchise, here’s everything you need to know, including exactly what a franchise is, and some of the reasons why franchises for sale are a great opportunity to get into business.
What is a franchise, exactly?
A franchise is a licence that gives the franchisee the power to sell products or services under the business’s name.
In order to do this, the franchisee must pay a fee.
One of the biggest examples of a business that works with a franchise business model is McDonald’s.
Franchisees must pay a down payment in order to sell McDonald’s food and work under the McDonald’s brand.
However, even though it can be expensive to set up, the rewards are often great.
If you’re thinking about becoming a franchisee, here are some of the greatest benefits:
Benefits of starting a franchise
You’re starting with a well-known brand
Unlike new businesses, where you have to start from scratch and build your brand up from the ground, becoming a franchisee can help you to start a business with ease.
This is because you’re starting with a well-known brand.
This means that your business will benefit from the fact that it is well-known, and there will already be a large customer base.
Moreover, you will be able to benefit from any adverts that the franchisor runs, which can help you to gain clients with ease.
In fact, because you start with a well-known brand, franchises are more likely to succeed than new start-ups.
Because the franchisor is so well-established, you won’t have to worry about attracting customers, creating adverts, or building a reputation as this has already been done for you.
Systems are already in place
Starting a new business can be difficult, especially when it comes to forming good relationships with suppliers and setting up dedicated supply lines to keep your business running no matter the demand.
Thankfully, with franchises, dedicated supply chains already exist, so you won’t have to spend time and effort meeting with suppliers and building a relationship.
Moreover, franchisors usually have deals with suppliers to order in bulk and will receive discounts, meaning that you will also be paying the cheapest amount possible for the supplies you need to succeed.
The company may give you training and ongoing support
Franchises, no matter the size, have a dedicated system in place to ensure that their franchisees succeed.
At the end of the day, your success as a franchisee will ultimately generate profit for a franchisor, so they want to help you.
As a result, support systems are available to ensure that your franchise gets help when it needs it.
For example, many, if not all franchisors, will provide training to both franchisees and employees to ensure that operations run smoothly.
You will also have access to further training, accounting help, HR support and much more.
Less risky
A franchise is a business model that has proven time and time again to be effective. On the other hand, start-ups have about a 90% chance of failing.
This is because you have to put in all the funding yourself, find suppliers, hire employees and try and attract companies to try your product or service.
This costs time and capital, and it’s likely that there will be failures along the way.
With a franchise, even if you fail, you will have a support system that will be able to help you improve.
You can work from anywhere
Depending on the franchise that you want to work in, you may have the opportunity to work from anywhere.
This is especially true if you decide to work for a franchise that doesn’t require a physical premise.
If you’re interested in working from home or working while you travel, starting a franchise might be the best option for you.
Once you invest in a franchise, you can choose the hours that you wish to operate, meaning that you have flexibility over your schedule and where you want to work.
Working from home is a mode of working that has become even more popular as a result of the coronavirus pandemic.
Therefore, the flexibility that some franchises offer is even more appealing in 2021.