Rather than starting to build up a new limited company, many entrepreneurs consider purchasing and operating a franchise. A franchise has proved to be the quickest way of setting up a business without starting from scratch. Franchising has become popular all over the world mainly because of the fact that it helps people find business opportunities. When deciding to run a franchise business, it is essential to evaluate the value and benefits of operating a franchise business. The following are some of the benefits that you get.
Low Failure Rate
Operating a franchise business means you are running an established concept that’s been successful. Recent statistics show that franchise businesses have a potential of 80% in achieving success compared to
managing independent companies which have a 70% chance of surviving.
An established brand
Operating under the banner of a franchise, enables you to take advantage of the previously known brand of the business. It typically means there will be far less cost and work put into trying to build and establish the brand of the company. Getting customers from the market will be easy since you are already known and trusted in the market.
Simple Business Financing
It is one of the benefits of operating a franchise business that attracts independent entrepreneurs. Acquiring finances from other stakeholders is generally not easy. However, in a franchise business, it’s easy since investors will be far more willing to invest in a company with a secure brand and active network.
High Buying Power
A franchise business will always have the benefit of having
a collective buying power. It means if you are the franchisor operating the franchise business, you can quickly afford to buy products and services in bulk and pass the savings to other franchisees in that business. The supplies and inventory will definitely cost less than when operating an independent company.
Established Business Relationships
Business relationships play a significant part in the success of any business. In a franchise business, there is less hassle of booking for better business relationships. For instance, relationships with suppliers will already be in place and most importantly easy to manage. The
advantage of the already established relationships with marketing and
advertisers team makes it easy to operate a franchise business.
Excellent Support and Security
Security and support systems are a must requirement in any
business. When setting up a business, you will probably run up and down trying to hold training schemes aimed at securing the business. When operating a franchise business, it’s completely different. In a franchise business, they have established training schemes that deal with management and security of accounts belonging to the franchise.
Expands Your Brand Geographically
If you are looking to get your brand to new regions, then try operating a franchise business. It is one of the benefits of operating a franchise business that gives you an opportunity of reaching to new areas that you could not reach. Through this, you have an excellent chance of expanding the reach of your brand to new regions that could increase your revenue.