Four Key Advantages Of Buying A Franchise

If you are in the early stages, just thinking about starting your own business, or are familiar with the ins and outs of running a business, franchising may not be something that you are fully versed with. Here we take a look at four key advantages to investing in a franchise business opportunity over going it alone.

You Know How Successful The Business Is

If you decide to start up your own business from scratch, you may be aware that the sector is growing or that there is a demand for the service or product, but there are still a lot of unknowns. Just because there is market demand, it doesn’t necessarily mean there will be demand for your specific offering.

Taking on a franchise business alleviates much of this uncertainty: you know how many customers can be found enjoying the products of a SUBWAY or McDonald’s for example, or see new CeX stores opening and thriving on high streets up and down the country. You can also find out the sort of profits that existing franchise owners are turning over, and know with a reasonable degree of certainty whether or not a brand is worth your money and will make you more. Statistically, franchise businesses have a better chance of success than start-ups.


It is a known mantra in the franchise world that investing in a franchise allows you to go into business by yourself, but not alone. You are your own boss, yes, but without the isolation and many of the pressures that being in the hot-seat traditionally involves. Nearly all brands have a dedicated franchise support team and comprehensive training, meaning you need not necessarily have any previous understanding of the industry to make it work.

New owners will be helped extensively in pre-launch, on everything from selection and design of premises to obtaining the right equipment, IT products and establishing a website. You can also count on long-term guidance, and the power of a brand to develop and grow the business long after your initial investment.

Marketing Power

Imagine, for example, that you have been running your own independent food-on-the-go restaurant (quick serve restaurant) for about a year, with a certain degree of success. You are ambitious, and wish to expand your reach and popularity by adding new items to the menu, but you are fretting that spending money on launching a new product could undo all your hard work and success if it isn’t a hit with customers. It sounds like a nightmare scenario and a difficult choice.

Now imagine that you are a Pizza Hut franchisee. Brands like this have huge marketing budgets and are able to push such new products via TV commercials, billboards and other forms of advertising, creating consumer demand and the desire to go to their restaurants and try out the ‘next big thing’. Better still, such brands can have decent confidence in the potential selling power of their new products, even before they are launched, as they will have tested the viability of such items through extensive market research well before this stage. Franchisees benefit hugely from this marketing power, at minimal cost.

Easier Finance

Before you get started, you obviously need to have the money in place to pay the initial Franchise Fee. Banks as a rule are more likely to look favourably on somebody looking for a loan to buy a franchise business than those looking to establish from scratch, in no small part because they are well aware of the previous three points on this list. In Britain, most of the major banks, including Lloyds, NatWest, RBS, HSBC and Metro Bank, now provide priority lending to genuine business format franchisors and their prospective franchisees.

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