Is Franchising for You?

Perhaps you’re tired of working for someone else or perhaps you’re retiring and would like to do something different. Well, if you have that desire and dream of working for yourself without all of the risks involved with starting a business, franchising might just be the right idea for you.

What is a franchise?

A franchise is a license to open a business with a parent company’s trade
name, service mark, advertising symbol, or trademark. McDonald’s, Subway, and Kentucky Fried Chicken are all examples of franchises. They are businesses
owned by individuals who have purchased licenses to open them.

What do you get when you purchase a franchise?

When you purchase a franchise, you get a better chance of succeeding than you would have if you started your own business. Your parent company provides you with significant assistance, including:

A proven business plan

The franchisor has done the trial-and-error all for you. They have mastered their franchise opportunity and hand you the secret to their recipe.

Business support

Someone is always available for important questions or advice. If you have any problems or require some help, there is always help at hand. In addition, most franchisors offer a toll free helpline.

Marketing support

You get to save money by doing only things that have worked. They have handed the secret to the functioning of their franchise to you. Therefore, you do not have to still figure it out all on your own.

Comprehensive Training

Most franchisors will provide comprehensive training and help you develop the necessary skills you require.

Reputable suppliers

Most franchisors have selected suppliers on your behalf.

Financial assistance

Many franchisors will help you with budgeting or financing and may even help you find a bank that can provide loans!

Consumer base

You don’t have to go out and find customers. They already know your brand! You’re immediately recognizable!

Not without any challenges

Buying a franchise does have its own challenges. For example:

• Startup costs and franchise fees - the average franchise costs can be anywhere between $35 000- $250 000 up front.

• Marketing and advertising fees – you will be expected to promote your
business.

• Royalty payments - these vary by franchise, but harm your
profitability.

• Sole sourcing - while your suppliers are proven, you often do not
have a choice.

• Long term contract - most franchisors will require you to sign a
10-year contract.

• Limited creativity - most franchisors will not give you broad
creative control.

If you are a true entrepreneur, you want to take the risk and think that investing in a franchise with a tried and true format is a good idea then franchising might be your best choice!

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