Franchising scores big against independent businesses
A large number of people all over the world are buying into franchises today because franchise buying has many benefits and advantages that seem to be missing from start-up independent businesses. While a start up business gives you the freedom and flexibility; it cannot offer you the assurance of success like franchises. Research has shown that while start-up businesses have a survival rate of 20 percent, franchise businesses have a survival and success rate of eighty percent. With the numbers and statistics in front of you, it is quite obvious that franchise buying has proven to be more beneficial than start-up businesses. Mentioned below are certain advantages of franchise buying as opposed to independent start-up businesses.
One of the main advantages of buying a franchise is that franchising has a very low risk factor. With the constant assistance and help of the franchisor, the risk reward ratio of buying a franchise is very low. While on the other hand, a start up business has a much higher risk since you cannot be sure about its success.
Another main advantage of buying a franchise is that you have the constant assistance of the franchisor, from setting up the business to its execution and functioning. In a start-up business, you do not have any formal mentor and you can only fall back on your partner or your team for assistance and queries. Thus, buying into a franchise is more beneficial than a start-up business venture.