9 Reasons to Invest in a Franchise

Reason #1. The Brand.
It is difficult to determine if your idea for a business will be recognized and accepted by customers. A franchise brand has already done this for you—you just maintain it. Plus, a recognized name, logo, and product means that prospective customers already know what you have to offer before you ever up the doors.

Reason #2. Marketing.
Franchisors offer national advertising that strengthens and supports the brand. They do marketing research and develop a consistent message that drives people to your site. All franchise business owners share the costs with money pooled from franchise fees.

Reason #3. Training.
With a business model that works, a franchisor provides training to its franchisees. Both pre-opening and ongoing education is instrumental to franchisee success. It also ensures consistency for the franchisor’s brand.

Reason #4. IT Support.
You might be tech-savvy, but unless technology service is the franchise sector you seek, your time will be spent building a customer base, not choosing payment systems or fixing computers. In many industries, franchisor systems provide technical support, established POS systems, and integrated technology to streamline back-office tasks.

Reason #5. Economies of Scale.
The supplies and inventory needed to operate your franchise are less expensive because the franchisor gets bulk discounts that would never apply to a small start-up. A small business in a large franchisor family has a lower cost of goods. Lower expenses mean an easier path to profitability.

Reason #6. Easier Financing.
Once again, an established and successful franchisor is viewed positively by lenders. Risk to lenders is reduced when the borrower is part of a proven business model, and they are more likely to approve business loans.

Reason #7. Greater Success.
One in five new businesses fail in the first year, but a franchise is part of something that’s already been successful. For you, that means a proven business model to replicate as a new franchisee.

Reason #8. Growth Options.
An entrepreneur can open more locations, but many obstacles would still exist (an unknown brand, higher cost of goods, marketing costs). With a franchise model, choosing to buy a second location has all the benefits of the first location already in place.

Reason #9. Saleability.
When the time comes to sell your franchise, you have a recognizable product for other investors. And since a franchisor has a vested interest in your buyer, they can help find a qualified and capable replacement for you.

The benefits of a franchisor’s business model are numerous. It’s much easier to duplicate a successful brand than reinvent the wheel on your own. With hundreds of franchise industries, you can find a business partner in a franchisor who offers many reasons to invest in a proven brand.

9 Reasons to Invest in a Franchise

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