Top 10 Reasons To Buy a Franchise
Although there are more than ten good reasons to invest in a franchise opportunity, your decision to go into business has a lot to do with lifestyle and financial benefits. Whether a home-based, service, retail, or fast-food opportunity, franchising is one of safest, dynamic, and progressive business concepts you can invest in.
1. A Springboard to Entrepreneurship
Buying a franchise allows you to become an entrepreneur in less time, limiting the multiple barriers first-time business owners would face. Essentially, you are buying a “business in a box” – a turnkey operation that has been designed, tested, and proven by a team of industry experts. By simply paying the fees and costs involved and following the designated training program, your entry to entrepreneurship is instantly satisfied.
2. A Safe Investment Decision
The failure rate of franchises is much lower than starting an independent business. Franchises are a safer investment because as the “system” grows, so should the security and strength of the infrastructure. To support this growth, the franchisor continues to add newer and more effective methods of improving the concept. A large franchise system usually means that brand recognition has reached widespread proportions, thereby increasing your revenue potential.
3. Enhanced Lifestyle
Many franchisees have claimed that franchising has allowed them lifestyle flexibilities that conventional employment cannot offer. The number one lifestyle perk continues to be the opportunity to spend more time with family, followed by an enhanced income. Franchisees have felt a greater sense of pride, financial accomplishment, and personal success as members of a successful franchise concept.
4. Govermental Protection and Safeguarding
Franchising is a regulated industry overseen by a number of federal level organizations in the United States and Canada. The disclosure document, or UFOC, outlines 23 key areas that each franchisor is required to disclose to franchisee prospects in order to make an informed decision about the opportunity.
5.Quicker and Easier Access to Financing
Through such organizations as the SBA, securing franchise financing has become a streamlined process, involving less red tape and paperwork. Some larger franchise systems even provide in-house financing and/or leasing options. Local or regional small business organizations across the country have designated franchise funding programs, providing additional assistance to women, the disabled, and visible minorities.
6. Ongoing Training and Franchisor Support
The initial training program offered by franchisors is a key selling feature which franchisee prospects should examine thoroughly prior to signing the franchise agreement. This initial training involve head office and/or an in-outlet training session, which includes an operations manual. Ongoing training allows franchisees to grow within the system and develop strong business operating skills.
7.Opportunity for Growth Within the Franchise System
Successful franchisees in any system are rewarded with advancement within the chain by receiving incentives on the purchase of additional outlets, leadership roles at the head office level, and an opportunity to acquire area developer rights or a master franchise - a role involving the overseeing and development of the system in a designated geographical area.
8. A Variety of Investment Levels
You don't have to be rich to buy a franchise or require an extensive net worth to qualify. You can find franchise opportunities for as little as a few thousand dollars that can be operated from home or on a part-time basis. The best place to begin your search is at one of many franchise directories available online that list thousands of franchises, in all categories and investment levels.
9. Professional Development
Becoming a franchisee does not lessen one’s entrepreneurial role and position. Progressive franchise systems provide its outlet owners with access to professional development and leadership seminars, business coaching, and other industry advancement initiatives. With a larger support network at arm’s reach, franchisees are business owners with advanced knowledge in small business affairs.
10. Buying Into a Start-Up Franchise System
Buying into a start-up franchise system can involve some financial risk and operational challenges, yet the long-term rewards – especially financial – is a reason to consider investing in a ground-floor opportunity. Pioneer franchising relies on the innovations, ideas, and determination of the “starter group” of franchisees to assist in the growth and development of the system. New franchisors typically offer its starter group with investment incentives such as a reduced franchise fee and a royalty-free period.