Benefits Of Purchasing A Franchise
A Business Strategy
Franchising is nothing more or less than a business strategy for getting and keeping customers. It is a marketing system for creating an image in the minds of customers about the company’s products or services. It is a method for distributing products and services that satisfy customer needs. Franchising is a network of interdependent business relationships that allows a number of people to share “brand identification”, a successful method of doing business, and a strong marketing and distribution system.
For the franchisee, franchising is about risk reduction and safety. You give up the lack of structure associated with being an “independent owner” to become part of a group of people committed to building a brand and dominating markets using a solid, tested and proven formula. You don’t have to guess about the most effective ways to build your business - there is a specific system to use!
Franchising provides a proven method of doing business (the operating system), a brand and trademark that will have value in the eyes of the customer based on execution of the operating system, and the initial and ongoing support you receive from the Franchisor, so you won’t have to reinvent the wheel to be successful. You provide capital to expand the brand (faster than the franchisor can by itself) and the management talent, with their help, to run the business and execute the operating system.
A franchise system should also provide group buying power to cut your operating expenses, faster growth due to tested marketing programs, predictable results based on your adherence to the operating system and less risk of your invested capital. The tradeoffs for you are the royalty fees you pay the franchisor for the operating license and some of the requirements you will deal with on the method of operating the business.
A franchise means you are part of a team. You don’t have to go it alone. Franchisees receive training and are taught proven systems on how to run, manage, and grow their business. There is marketing support, both direct and indirect. Franchisees know they are part of a team and, if there is a question or an issue, they know that someone is going to be there to help. As a franchisee, you have comfort in knowing someone is there with a vested interest in your success.
Value in branding
One of the great benefits you receive as a franchisee is brand awareness. Part of the marketing budget in virtually all franchises is spent on building brand awareness. Franchisors understand that the more well-known they become as a brand, the more their franchisees will be able to sell their product. When you reach that point in life you want to retire and sell your business, brand awareness takes on a whole new role. Many potential buyers will already be looking specifically for your business because they are already interested in . In many cases, buyers already know who you are. They want to purchase your business because they are already sold on what you do and how you do it.