There are pros and cons to any business model, but here are the Top 5 reasons why purchasing a franchise is better than starting from scratch. We added in one more bonus reason because 5 couldn’t hold all the good news!
Advantage 1: Explore a New Career, Work in a New Industry! No Experience Necessary
Buying a franchise allows you to work in a field that you don’t have any previous work experience in, but does interest you. Franchise brands (also known as franchisors) offer extensive and thorough support and training to franchisees. This serves to educate the franchisees and help them understand the company’s business model. By joining with an already established brand, you will gain access to knowledge, experience, and industry secrets that you would have otherwise had to learn through trial and error. Owning a franchise allows you to tap into existing franchisees’ and company leadership’s years of first-hand experience, increasing your chances of success.
Advantage 2: Lower Risk
Franchises are a more secure investment than new businesses because they have the support and backing of the franchisor, an already established company. These corporations have business models that have been tested, often across the country, and proven themselves to be effective. Because of their history of success, getting a franchise business loan is easier than getting a loan to start an independent business. The banks know that investing in a franchise is a safer bet than investing in a new business that has not yet had the opportunity to build a history.
Advantage 3: Loyal Customer Base and Brand Recognition
One of the hardest parts of starting any new business is finding your first customers, which is one of the reasons so many people turn to franchising. When you buy a franchise you get to bypass a lot of the marketing and branding a new, unknown business requires. A franchise grants you access to an established, loyal customer base and potential employee pool. Buying a recognized brand can give you an accelerated path to profitability by bringing in customers and prospective employees from day one.
Advantage 4: Collective Buying Power
When you purchase a franchise and become part of the company’s system, you'll benefit from your franchisor's relationships with suppliers. This means that materials, like PPE for home care workers, will be less expensive because of collective buying power.
Advantage 5: Hit the Ground Running with Extensive Franchisor Support
Most franchisors prioritize supporting their franchisees, especially when they are just starting out. They do this by offering them pre-opening assistance with operations like site selection, design, construction, training, and grand-opening programs. The help doesn’t stop there. Some franchisors even give loans and other forms of financial assistance to their franchisees. Some even offer special incentives to Veterans and other groups.
Advantage 6: Be Your Own Boss (The Bonus!)
Owning a franchise allows you the chance to be your own boss. You'll have more flexible schedule, and can revel in having more autonomy over your career. You can even choose to work from home, if that’s what you want. You’ll own a business while having a support system to turn to when you’re in need of assistance or advice. In franchising, there’s a saying, “You’re in business for yourself, but not by yourself.”