Franchising Allows You to Grow and Succeed With Support from a Franchisor
According to Fundera, 20% of small businesses fail in the first year, while 50% percent of start-ups fail by their fifth year. For many entrepreneurs, these stats can be incredibly discouraging.
However, buying into a franchise is one attractive option for those looking for a less risky way to become a business owner. When investing in a franchise, you are in business for yourself but never by yourself. Franchisors provide a proven system and business model from the start, existing brand recognition, predictable reoccurring expenses, support on hiring and training, and more.
If the thought of being an entrepreneur piques your interest, but the thought of all the potential risks and work to build something from the ground up do not, here are a few tips and considerations for why you should consider franchising.
A Tried-and-True Business Model
When you invest in a franchise, you are investing in a blueprint that has already been mapped out by the franchisor. This blueprint has been through trial and error and refined down to a proven, successful model.
The steps to bringing a start-up business to operation are lengthy and stressful, but with the help of your franchisor, you will jump through many of the hoops that hold other business owners back when they are starting a business. Franchisors provide:
- Franchisee training to ensure new owners are prepared to run the business;
- Human resources and hiring practices and support already in place for staffing;
- Access to learning opportunities and ongoing professional development;
- On-going operations support post-opening;
- Regulation through the Federal Trade Commission;
- Legal support to ensure you remain compliant with national, state and local laws;
- Marketing and communications support, and more.
Brand Recognition and Marketing Support
Getting in front of the right audience with an effective message can be difficult for experienced business owners, let alone those new to an industry. Thankfully, franchisors provide marketing and communication support to each of their franchisees to aid them in their efforts to grow brand recognition within their market. These include access to marketing materials, advertising and brand standards, and website creation and maintenance (which can often be customized to each location). Not to mention, franchisors leverage public relations and SEO/SEM support on a national scale to expand the brand’s name. This gives many a head start when opening a location in a new market, especially if it’s a new-to-market brand.
When it comes to marketing your business, you don’t have to be well-versed in all aspects of running a successful business because your franchisor provides an experienced team that supplies each franchisee with marketing materials that have a track record of success.
In a franchise setting, you always have the ability to grow.
Room for Growth
When you become a business owner, it may feel like there is no more room for growth. However, in a franchise setting, you always have the ability to grow. Because you are simply paying franchise and royalty fees for a license to the brand’s name and systems rather than building from scratch, you are ultimately saving money.
Franchisors offer the ability for franchisees to grow by becoming multi-unit franchise owners, meaning you can invest in multiple locations to grow your business. For example, if a franchisee is considering selling their location, other franchisees typically have first right of refusal before the sale is offered outside of the company. This provides a competitive edge and advantage to those franchisees looking to add additional locations to their business portfolio.
In addition, some franchises are part of a consortium, an association made up of several companies, which means you can invest in different brands under the parent company’s umbrella, diversifying your portfolio and meeting your various interests. Empower Brands, parent company to Intelligent Office, offers a variety of franchise options that not only provide diversity to entrepreneurs for investment but also complement the other services well, providing a sort of in-house lead gen funnel from the get-go.
Deciding if a Franchise is Right for You
No matter the path you choose to take when starting your own business, becoming a business owner will be unfamiliar territory. Thankfully, all franchises are required to provide a Franchise Disclosure Document prior to franchisees signing the franchise agreement. This document contains extensive details of the franchise, including their history, success/growth rate and more to help you determine if their model is a fit for your needs.
There are always a few things to consider when choosing if a franchise is right for you:
- Based on my existing skillset, is there an industry sector that is more appealing to you?
- When starting the search for a franchise, always ask “What sets you apart from your competition?”
- Research the brand, evaluate its culture and history and ensure you have an idea of who is leading the brand.
- Review a Franchise Disclosure Document (FDD) before agreeing to sign a franchise agreement.
- Contact existing owners for testimonials.
While the thought of starting your own business can be daunting, it doesn’t have to be. With the backing of a franchisor, you will have access to an abundance of resources to support you on your entrepreneurial journey.
About the Author
Silvia Zuniga led the market expansion of the franchise Intelligent Office in Fairfax County, Va. In 2008, she opened a new full-service office providing a host of professional services and office space to small businesses and highly mobile executives and professionals.