Franchise Advantages
Joel Caws - Technical Director, Select Your Franchise
When I first started working in the franchise industry back in 2002 I was amazed at the number of franchise businesses covering everything from your well known, high street brands to a whole host of man-and-van franchises that will pop round and give your lawn a quick trim or fix your leaky pipes. In fact my surprise was as much in the fact that I had used many of these companies without even being aware of their franchise heritage. Pretty much any service you can think of can be franchised and many already have. Browsing through many of the online franchise directories will soon give you an idea of the amount of franchise options available to almost anyone with some capital to invest, a willingness to learn, a dedication to follow the system and work hard.
So what are the advantages to a franchise business over traditional self-employment? On the surface it may seem like you are actually paying a franchise fee to another company to simply work under their banner but there are some significant differences which can make a franchise business a better option.
The Franchise Advantage
A proven business system
The heart of a franchise business its is proven system. A franchisor usually starts out as a traditional business who, after proving the business is profitable, will look for further ways to expand their already successful business. The essence of the franchise idea is, quite simply, the replication of a proven business model. This provides a significant advantage of self-employment in that the franchisor has already tried and tested the business and documented it so that it can followed by another giving them the ability to replicate their success.
Branding and Customer Perception
Obviously there are the big name, high street, food chain franchises which by the power of the branding and advertising represent significant advantages over setting up your own unknown named business. But even with smaller, lesser known franchise brands, the customer perception that it is part of a much larger network can in itself bring security and confidence to the customer that the franchise company is not just a here today, gone tomorrow outfit but there is a larger network supporting it.
Funding
Many banks look favourably on franchise startups because of their proven track record. This can be especially true for well established franchises since the franchise sections of the major banks usually keep records on what franchise systems appear to be performing well. This can be an advantage over traditional self-employed startups which can be more of a challenge to aquire funding and support from the bank.
Support
A good franchisor will provide support and training to ensure the best chance of success. It does mean that the business belongs to the franchisee and he or she is responsible for its failure or success. However when things are tough or motivation is low it should mean there is someone to talk to for advice and help.
These are just a few of the main advantages in choosing a franchise business over going it alone. However, franchising like any other business is an investment. Taking on any investment requires careful research to ensure well informed decisions and not throwing caution to the wind because a business opportunity has a ‘franchise’ label. Consider carefully, do your research, speak to existing franchisees and take your time.
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