Advantages to Owning a Franchise
“Owning a franchise allows you to go into business for yourself, but not by yourself”
- You will have a built in support system from the Franchisor and their systems and processes to the existing franchisees knowledge base.
- A franchise provides a established service with brand recognition
Skip the Ideation and Start up phase
- You don’t have to come up with a business idea
- You don’t have to test the idea, will this be successful?
- You don’t have scale and untested product or service
Lower risk
- We all encounter risk on a day to day basis and we try to mitigate our risks whenever possible. Purchasing a franchise, over starting a business on your own, can be seen as an effective mitigation strategy. As, franchises have a built in franchise network and the business model has been tried and tested in multiple markets
Franchises offer ongoing support
- Training, operational procedures, operational assistance, ongoing support, and access to the benefits of economies of scale
Why may a franchise make sense for you?
- Less complex than starting a business from scratch
- When you purchase a franchise you are purchasing the systems and processes that have made the franchise successful. You don’t have to recreate the wheel!
- When you purchase a franchise you are purchasing the systems and processes that have made the franchise successful. You don’t have to recreate the wheel!
- Proven record of success
- You are investing in a business that is already successful.
- You are investing in a business that is already successful.
- You can benefit from economies of scale
- A franchisor builds relationships with their suppliers and utilizes their collective buying power to lower the prices for the franchisee.
- A franchisor builds relationships with their suppliers and utilizes their collective buying power to lower the prices for the franchisee.
- Become part of a national team
- You have access to all of the industry specific knowledge of the franchisor as well as all of their franchisees. Take for example we have a franchisee who specializes in large scale festivals and events. He and his team were instrumental in Fire & Rice’s work with the PGA, LPGA, and the Champions Tour events.
- You have access to all of the industry specific knowledge of the franchisor as well as all of their franchisees. Take for example we have a franchisee who specializes in large scale festivals and events. He and his team were instrumental in Fire & Rice’s work with the PGA, LPGA, and the Champions Tour events.
- Franchised businesses make up approximately ten percent (10% of all U.S. businesses)
- It is estimated that there are 753,770 franchise establishments in the U.S.
- There are approximately 7.49 million people employed by franchise establishments in the U.S.
- The estimated total economic output of franchise establishments in the U.S. is 670bn U.S. dollars
- It is estimated that there are 753,770 franchise establishments in the U.S.
Tips on selecting franchise
- Pick a franchise in which you are passionate
- Starting a business or purchasing a franchise is a long-term decision. Make sure you look at an industry and segment in the industry which gets you excited!
- Starting a business or purchasing a franchise is a long-term decision. Make sure you look at an industry and segment in the industry which gets you excited!
- Speak with the Franchisor and ask questions, dig down and get to know the business
- Ask the Franchisor why they started their business?
- Why did they franchise their business?
- Why should I choose your franchise over starting a business on my own?
- What have been some of your biggest challenges?
- May we speak with your existing franchisees?
- This is one of the most import questions you can ask, because the franchisees have been in your shoes. Ask them the good and bad of being a franchisee.
- This is one of the most import questions you can ask, because the franchisees have been in your shoes. Ask them the good and bad of being a franchisee.
- Examine local reviews from franchisees
- Ask the Franchisor why they started their business?
- Be open and honest about your goals and finances
- Becoming a franchisee is a multi-year relationship, many times a five (5) to ten (10) agreement. Be honest about your investment level comfort. Not every franchise is a good fit for every person, and that’s ok.
- Ask about the companies goals and see if they align with your goals.
- Becoming a franchisee is a multi-year relationship, many times a five (5) to ten (10) agreement. Be honest about your investment level comfort. Not every franchise is a good fit for every person, and that’s ok.