The power of franchise
Lots of people who want to start a business create the idea themselves, but others want to extend or develop an already existing business. These get a little protection from the already established business, but are able to open their own store, or office, or department. This is called franchising.
Advantages of buying a franchise:
• Brand recognition and advertising: Franchises in businesses of fast food, retail, cars, manufacturing and many others already have a good brand name and country-wide recognition. A lot of money is spent on the advertising and promotion of these brands. This way if you get a franchise in these companies, your franchise is indirectly advertised too.
• Low rate of failure: The reason of low rate of failure of franchises is due to its combination with a recognised brand name or company. People who recognise a company name on a franchise are more likely to use that business or service than they are one they haven’t heard of – even if it offers exactly the same products. Franchising also offers you more financial and legal protection, as you will be a part of a larger company. If you want to open and start your own business, you will have very little comeback if the business does not work out.
For these reasons, franchising is a very successful enterprise, and should be considered by anyone wanting to open a business.