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The Advantages of Owning a Franchise

Guest post by: John Henning

Article Overview: Starting out from scratch when creating your own business can really take a lot of work. Many people choose to start from scratch and build their own company from the ground up just so that they'll be able to have a sense of pride and accomplishment. Those are both noble causes and it's always a good idea to become an entrepreneur when creating your business. On the other hand, there are also some individuals who would rather simply work with a company's brand name so that they won't have to worry that much about marketing or spreading the word about what types of products and services they offer. This type of ownership of a business is called a franchise. There are many advantages that an individual has when they own a franchise, but probably the greatest advantage that a franchise has, as mentioned, is the fact that they are starting ou

The Advantages of Owning a Franchise

Starting out from scratch when creating your own business can really take a lot of work. Many people choose to start from scratch and build their own company from the ground up just so that they'll be able to have a sense of pride and accomplishment. Those are both noble causes and it's always a good idea to become an entrepreneur when creating your business. On the other hand, there are also some individuals who would rather simply work with a company's brand name so that they won't have to worry that much about marketing or spreading the word about what types of products and services they offer. This type of ownership of a business is called a franchise. There are many advantages that an individual has when they own a franchise, but probably the greatest advantage that a franchise has, as mentioned, is the fact that they are starting out with an already recognizable brand name! Use of the Company's Reputation

One great thing about starting out with a franchise is that you are able to use the company's whole reputation in order to advertise services, give out coupons, and treat the customer's right. In some cases a franchise may actually be better for the company itself if the company has previously had a bad reputation in certain aspects of treating their customers. But the use of the company's whole reputation means that their is less work involved for the franchise owner.

The Ability to Change

Most companies that allow their stores to be franchised usually have stipulations that go along with owning a franchise of their store. However, one of the abilities that a franchise owner has that others do not is they are able to change things as much as possible. Of course, a pizza company's franchise can't change the whole structure of the business and can't go from selling pizza to office supplies, but other things about that pizza franchise could change. For starters, perhaps the company uses a specific sauce that the franchise doesn't want to use. Of course, all of this and many of the changes have to be cleared with the officials at the company before it's done, but franchise owners do have the ability to change things within their actual store.

One other element of change that franchise owners are usually allowed to do is to change the outside or "look" of the building that they're in. Many people realize that usually all stores, restaurants, and other businesses usually all have the same outside look and feel of the store. However, franchise owners are sometimes not bound to that same outer look of the building!

Simply put, franchise owners really do have the upper hand when forming a branch of a company in their own town or city that they want to start it from. Even though the franchise owners themselves won't gain any of the recognition for starting a company from scratch, he or she will still be able to enjoy everything else that goes along with forming a company and turning profits!

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Article Tags: franchise brand



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Re: Trying to buy own building - For that matter, what is best? Owning your own building, or renting office space?
Re: Enticing Franchises - Top 9 List - All Franchise listed above are in millions of dollars. Do you have the list of Franchise in thousands
Re: Info for would be franchisers... - [quote="Sebastien":1d29sdv1]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to. I just want to mention that all these magazines are NOT franchisee oriented. I mean these magazines are for franchise professionals. If you're looking to buy a franchise, you won't find much information in there. To answer your question, getting published in Franchise Times was fairly easy. I don't want to brag too much but I think I am known in the franchise industry. I was the marketing guy at Franchise.com for a few years before joining my new company, the World Franchising Network. So people know me and I have a very good relationship with Nancy Weingartner, the Managing Editor at Franchise Times. I was talking with her at the last Franchise Expo South in Miami and she mentioned she'd like me to be profiled. I was like "ok, sure!". I like this franchise executive profile thing in Franchise Times as it is rarely BS. People are usually really natural in there.[/quote:1d29sdv1] Thanks for the follow up Sebastien! And I can't say that I'm surprised that networking with the right people and managing your relationships with them properly are the keys to being published. I guess the old adage holds true of "it's not who you know, but who knows you" that's important.
how much for a franchise fee? - Dear Colleague There is no easy answer to this question. Things to consider: [list=] The sizeof the Franchise Clent base Expected Turnover Intellectual Property costs (recoup) Number of Franchises Number of employees Original Set up costs Franchise admin costs An example: A franchise that I was involved in setting was to a simple "lawn mowing/home repair" franchise. The Franchise included national/local advertising - preparation of client lists - general admin - central accounting etc The Franchise involved 300-500 clients - and an annual turnover of about $300,000 . The annual franchise fee was $30,000. Hope that this gives you some idea Take care Ian[/list]
Re: Franchise Surveys - Another good tool to researching a franchise is to speak with their existing franchisees. This contact information is included in most Franchise Disclosure Documents. In order to get a Franchise Disclosure Document or FDD as it is often referred to, you will have to complete a basic franchise application. The franchisor will then usually provide you with the FDD at that time. Included in that book of information is a list of the existing franchisees, the contract, the investment information etc... This information is required by Federal Law to be disclosed to your prior to making a purchase. So be sure to do your research and start with the Franchise Documents to get the initial information.


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