What is your favorite place to grab a quick lunch? Subway? McDonald’s? Krispy Kreme? Nothing wrong with any of those choices. Aside from providing tasty treats, those are all franchise businesses. What is a franchise business you ask? It’s a great way of jumpstarting your own business portfolio. Instead of coming up with a perfect idea for a company, someone else has done it for you. Unlike starting a business at home, opening a franchise will require a much more serious investment of money and of time. However, the rewards could be more fruitful and fast.
To begin you franchise research, you might want to start at a franchise expo. Think of this as Comic Con for chain restaurants. Of course, many other businesses outside the food industry are franchises. Consider these benefits of opening a franchise:
Proven Track Record
You don’t get to be a franchise business without developing a solid business model. The parent company has already crunched the numbers and can provide you with a long list of all the things that have been tried and tested as it relates to that company. In other words, your research and development is covered.
A Strong Brand
It goes without saying that the biggest benefit of a franchise is the brand name. A strong brand is going to provide a dependable amount of business. You’re providing a product that your customer already is familiar with and trusts. All you have to do is maintain the standards set by the parent company and you can reap the rewards of the brand.
A company who provides you with a franchise operation wants you to be successful. You’ll be paying that parent company a chunk of your profits. In return, they’re going to provide you with all the wonderful marketing support you need. Any time you see an ad for Subway or Burger King, your local franchise isn’t paying for that spot directly. However, they are certainly benefiting from the exposure. Having a franchise means a large portion of your marketing is covered.
If you were to open your own sandwich shop tomorrow, then there would be a huge learning curve. With a franchise, you’ll be provided with the training. That training extends to everything from management to front line to operations. Yes, there will be a ton of homework material headed your way but again, this is all the proven track record stuff. Just follow the plan.
Build Up Help
You can buy into a franchise that is already up and running or start one from the ground up. Remember, that parent company wants you to succeed. That means they’ll help you pick a good spot for your franchise, step in to negotiate the real estate deal and even assist with the construction.
Because you’re buying for a franchise, you’re buying in bulk. You’re also getting a great company discount. Again, this will all be set up for you. You don’t have to go looking for vendors.
Sounds great, huh? As mentioned above, a franchise business does have a lot of benefits but it’s also extremely challenging. You won’t be making your own hours. That will be dictated by the business and that business needs to stay open to make money. Not every franchise is guaranteed success. Sure, you can put a good team in place but you still have to be involved to make sure the standards are being met.