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Franchise Ownership Provides Competitive Advantages

Written by: Anto Mathew

Article Overview: “In business for yourself, but not by yourself” – that’s a common adage used to describe the advantages of franchise ownership. And there is real validity to that statement

Franchise Ownership Provides Competitive Advantages

An independent business operator takes on a lot of risk when trying to launch a new business. Starting a business from scratch is hard work, and more than half of new businesses fail to become profitable.

The success rate for franchises is 90+ percent. Franchising is a growing industry - consider these facts:

• The Franchising industry employs over 8 million people in the US.
• The annual payroll for franchises is more than $229 billion.
• A new franchise is 2.5 times more likely to succeed than a non-franchised business.
• Franchising generated one out of every seven jobs in the private sector.

The whole beauty of franchising is that someone has already done the work for you. The wrinkles are ironed out, and the system has been proven through real-world experience. Franchise owners don't have to reinvent any wheels. Instead they drive a complete, road-tested machine.

Buying a franchise dramatically decreases the learning curve for the business. Most franchisors provide the necessary training on how to run the business. It's like a fast conveyor belt to acquiring a lot of knowledge instead of learning by trial-and-error, which is the difficult, and often costly, course facing solo business owners.

As a franchise owner, you get to be your own boss within the comfort zone of a tried-and-true business. It's a proven commodity that works. The franchisor has demonstrated the success of the system, and can share a repeatable formula for a financial consideration - the franchise fee.

For those thinking about buying a franchise vs. starting their own business, consider these benefits:

• The franchise has already been proven successful. The franchisor and active franchisees can testify to the reliability of the systems and business operation.
• Training is provided and greatly accelerates the time to start up a business.
• The operating system can be learned and then followed to duplicate positive results.
• Brand name recognition - customers already exist and are loyal to the brand.
• Many franchisors provide location assistance, which can range from finding the right site to sales or rental negotiation. Franchisor input on location can be a key factor in success because of previous experience with other locations.
• Marketing support in the form of national and local advertising, as well as advertising and public relations templates to use, allow franchise owners to cost-effectively spread the word about their business.
• Franchisees can expect to get ongoing support from regional representatives, toll-free numbers, company intranet, meetings and conventions, as well as more training. The franchisor wants franchisees to succeed and typically does whatever it takes to get make a new franchisee competent and confident as quickly as possible.
• Discounted purchasing of supplies and goods used in the business thanks to the power of group buying.

To find out more about buying a franchise, visit Franchise Direct and check out the "Guide to Buying a Franchise."

Related Articles
  Benefits and Responsibilities of Franchise Ownership
  Advantages of Owning a Franchise
  The Advantages of Owning a Franchise
  Is Business Ownership Part of Your Destiny
  Franchising Outlook Report Offers Further Proof 2011 is the Year to Become a Franchise Owner

Article Tags: Franchise, Franchise Business, Franchise Opportunities, Franchises



Related Forum Posts
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.
Re: Info for would be franchisers... - [quote="Sebastien":2gam0klq][quote="BuzzAroundBooks":2gam0klq]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.[/quote:2gam0klq][/quote:2gam0klq] That is really what I look for in any industry publication. We lead busy lives and when people fill their magazines with fluff, not only does it benefit no one, but it makes us truly appreciate those that don't. Thanks!


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