You’ve worked hard all your life and now you’re finally ready to take the plunge and start your own business, which means it’s time to make a big decision: do you start from scratch or buy into a franchise? Your instinct might be to start from scratch so you can have complete control over everything but there are a whole host of reasons why buying into a franchise might be a better idea.
Here are 7 common reasons why people choose to buy into a franchise:
This is probably the most obvious reason to buy into a franchise. An established franchise has an established reputation as well as a logo, uniform, menu and all the other branding you would need to develop from scratch. Because they exist in many different locations a franchise will also attract people from out of town looking for something familiar.
2. More financing options
Most lenders are far more willing to provide financing for a franchise business because the existing branding makes a franchise more likely to succeed. Some franchises, like Australian franchise, EFM Health Clubs, also provide their own financing programs to help you jumpstart your business.
3. Business systems
A franchise already has all the systems you’ll need to run your business set up. They have existing hiring processes, financing plans and more. Most will even teach you how to use these systems when you buy into the franchise.
4. Support from fellow owners
Buying into a franchise gives you access to their network of owners. This allows you to get advice and moral support from people who have been in the franchise longer. Depending on the franchise you might also be assigned a mentor at first to help you settle into the business.
Along with providing ongoing moral support most franchises give new owners 1-4 weeks of full time business training which shows you how to use the franchise systems, manage hiring and train your employees. If you’ve never run any sort of business before this training can give you a huge leg up.
6. Exclusive territory
Franchises typically have rules about how close to each other locations can be. When you buy a franchise you are buying the exclusive right to do business for that franchise in that area. Of course there will still be competition from other companies but this exclusive area combined with the widespread branding of most franchises makes it easier for you to attract people from all over.
7. Easier expansion
As a member of the franchise owner network you will often be given first dibs on buying existing locations when they go up for sale. Many franchises also have programs designed to help you expand from one to two locations within a relatively short period of time.
Buying a franchise does mean giving up some of your creative control when it comes to how you run your business but for many business owners the benefits far outweigh the disadvantages.