Starting a business from scratch can be an incredibly daunting task. Not only are you developing a concept, you typically have to wear the many hats of managing and working in the business as well. One really great way to help ease that burden is to consider a franchise business. A strong franchise will let you begin with concepts that are already proven, workflows that are already established, and some even already have a brand that is popular. If you are considering starting your own business, here are a few reasons a franchise might be the right choice:
1.) You will be your own business owner
While you have a successful business supporting you behind the scenes, you’re still your own boss when you own a franchise. You are in charge of the facility, how things operate, and who you hire, all while still having the support and guidance from the franchisor and other franchisees in the system.
2.) There is endless opportunity to grow
Franchisors love when franchisees are successful and want to own multiple units. The franchise you’re considering may be exactly what your town is missing, but it could also be something your entire area is missing as well. Franchising gives you the ability to scale much more quickly than a standard business due to the efficiencies of the model itself. With franchising, the sky is the limit once you have the right concept.
3.) There is already an established brand image and awareness
Without question, the most difficult piece of starting any business is developing a brand to become a household name. With franchising, depending on the concept, that work may already be done for you, which minimizes some of the stress of finding customers. Taking advantage of the branding that is already established can help you get a strong foothold in your market without having to start from scratch. A familiar business with a good reputation should give you an advantage on your path to success.
4.) It is easier to obtain financing for franchised businesses
Securing a loan to start up your own original business may be significantly more challenging than asking for a loan for a familiar and thriving franchise. Many franchisors already have established relationships with lenders for new franchisees and have resources to help negotiate the relationship, leaving one less thing for you to deal with. Lenders typically feel much more confident in a business that already has a proven model and a history of success.
5.) Training and training materials are provided
One of the best things about franchising is that you are not having to create processes and ideas yourself. Since you are working from an existing concept, you can see how the business runs in real time by looking at other franchisees. Many franchisors even have concept stores or training facilities at their headquarters so you can put to practice what you have learned during your training. The franchisor is invested in your success, and so they will always try to make sure you have all the tools necessary to give you the best chance to be successful.
6.) You have a support system
When you are starting your own concept, many times you do not have a support system for answering difficult questions or addressing challenges that arise. One of the most overlooked benefits of a franchise system is the fact that you have other franchisees who have been where you are and have already faced and overcome many of the challenges and questions that will arise. The franchisee network is one of the best support teams you will find, and that network mixed with a franchisor who wants you to do well can put you on the path to success.
These are just a few the reasons franchising is a great way to get into business ownership. If you think franchising may be right for you or if you have questions about the franchise model, having some help navigating the industry is important. Rauchway Law is a trusted legal guide and partner in franchising, providing legal counsel to current and potential franchisees, and we are here to help you get the process started.