Imagine you are preparing the most difficult meal ready to be served to thousands of customers! Or you planning an around the world trip with no Map or help! Either of these exercises would be rather daunting and most likely you would not enjoy the desired result.
This is exactly why when opening a business exploring the franchise model offers several advantages over starting your own business concept from scratch. Here are a few reasons why it can be beneficial:
- Proven Business Concept: Franchises provide a tried-and-tested business concept that has been successful in multiple locations. This reduces the risk of failure compared to starting a completely new venture.
- Established Brand Recognition: Franchises often come with a well-known brand name and a loyal customer base. This recognition can attract customers more easily and help you establish a foothold in the market faster.
- Training and Support: Franchisors provide comprehensive training and ongoing support to franchisees. This can include assistance with site selection, operations, marketing, and other crucial aspects of running the business. You can benefit from the experience and expertise of the franchisor and avoid many common pitfalls.
- Economies of Scale: Franchises often benefit from economies of scale in purchasing and operations. This means you can take advantage of bulk purchasing power and cost efficiencies that may not be available to an independent business owner.
- Marketing and Advertising: Franchises often have dedicated marketing and advertising strategies in place. This can save you time, effort, and resources by leveraging the franchisor's established marketing campaigns and materials.
However, it's important to note that the franchise model may not suit everyone. It requires adherence to the franchisor's guidelines and a willingness to operate within an established framework. Additionally, there are financial obligations, such as franchise fees and ongoing royalty payments, which should be carefully considered. Ultimately, the decision between starting your own business concept and pursuing a franchise depends on your personal preferences, goals, and resources.
At the end of the day an ongoing royalty may be a small price to pay to elevate your chances for success. Statistically speaking 9 out of 10 startups do not see year 10. For franchise owned business the statistic is reversed with 9 out of 10 surviving year 10!