Franchising – advantages galore
People aspiring to start their independent business feel hesitant due to the risks associated with it. But franchising involves much less risk, as your franchise is strongly backed by a well established business model. The following paragraphs describe the numerous advantages of franchising that may make you think seriously about buying a franchise.
Easy availability of funds: Funding is the biggest worry when you think of setting up any business. Franchising significantly minimises this problem. The biggest advantage of franchising is that a major part of the finance is available from the franchisor itself. You are usually required to pay an upfront fee of a few thousand dollars along with on-going royalty fees on a pro-rata basis of your gross sales.
No difficulty in locating property on lease: If you own a commercial property, you can put it to good use for your franchise. You will not only secure return on your property investment but also eliminate fluctuation in expenses on real estate. If you don’t own it, franchising puts you in an advantageous position, to find property on lease at affordable rates without much difficulty.
Quick returns from business: If you buy a franchise of a reputed brand, your returns start coming much early. The products or services of your franchisor being already known to customers, you don’t need to work to build up brand image.
Strong brand sells easily: On the basis of strong brand identity, your business can move faster and gain quick credibility in the market. The right to use a franchisor’s trade mark and brand name is one of the biggest advantages of franchising. This provides you huge savings on marketing expenses.
Additional support: A strong franchisor, apart from rendering financial assistance, provides an efficient trouble shooting service, regular training on services, products and marketing trends.
Buying a franchise minimises your risks, but you must investigate the credentials of the franchisor and study commercial terms of franchise agreement very carefully before you sign up.