Advantages of a Franchise
Desperately want to be your own boss, own your own business, work at your own convenience but still confused about the prospects of franchising? Just can’t understand why you should take up franchising? What are its advantages? We give you a quick lowdown on some of the advantages of franchising
The following are the advantages of franchising
• A successful business model On buying a franchise you get access to the franchisors already proven business model and you don’t have to build your business from scratch. This saves a lot of time and energy and also increases ones chances of success. Some experts even suggests that franchised businesses have an success rate of 80% as against the 20% of start ups
• Awareness and Recognition Since a franchisee can use the franchisors trademark and brand ambassador, this leads to high awareness, recognition, recall and the combination of these factors ultimately results in sales. These factors help in long term brand building.
• Franchisor support The franchisor supports you in your business from the beginning in all the activities ranging from training and hiring of staff to setting up the business. Also throughout the franchise period the franchisor acts as a vital support system and is only a call away.
• Exclusive rights An increasing number of franchisors are now giving their franchisees exclusive rights over certain territories. This helps in garnering more business because there is no cannibalization of sales.
• Easy finance options Most lending institutions would not hesitate to give a loan to a franchisee because of the franchisors established business, hence procuring finance becomes easier when compared to when one is running his own start up.
• Reduced Risk The risk reduces considerably as it is shared between two parties, i.e. the franchisor and the franchisee.
• Benefits of Franchisors Communication The franchisee benefits greatly from the advertising and marketing strategies put in place by the franchisor. When good marketing and advertising is followed up with aggressive promotions success is inevitable. The franchisee benefits from all such activities without even spending a single penny.