Whether you are in a career transition or looking for a side hustle, investing in a franchise gives you a leg up on those who choose to start a business from scratch. Seven advantages you’ll enjoy as a franchise owner:
1. Proven Business Model
The brand you invest in will already have proven its mettle in multiple markets. Performance data from the franchisor. validated by franchisees in the system, will give you a reasonable idea of what to expect.
Mind you, there are no guarantees, but rather than create or reinvent wheels, you’ll hit the ground running with replicable systems and practices that have been shown to work.
2. Easier Financing
A franchise’s track record and replicable model make lenders more comfortable providing funding. What’s more, we work with partners who specialize in franchise financing. Their industry expertise results in a 99% bank loan approval rate for pre-qualified clients.
3. Fast Ramping
Franchisors have made a science of ramping new franchisees quickly, with the intent of accelerating your arrival at break even and beyond
Operationally, home-based and mobile models can have you up and running within 30 to 60 days of a signed agreement. This includes your training, staffing, equipment and technology.
Financially, franchisors seek to give you a fast sales boost by deploying aggressive marketing campaigns well before you launch. This helps you hit the ground running with customers already in the bank.
4. Ongoing Training and Support
Extensive year-round support is a franchising hallmark. In fact, this is largely what your royalty fee pays for. You’ll have access to experts, marketing, technology and systems you’d never afford on your own. This often includes:
* Assistance with staff hiring and training
* Ongoing industry education and intelligence
* Technology stack to run your business and grow your customer base
* Turnkey digital advertising, social media and other lead-generating marketing
* Collective buying power with savings that help your profit margins
* Sophisticated operations systems that ease your workload and allow for remote oversight
* National accounts that can create relatively easy local business for you
* Dashboards that track your performance and identify growth opportunities
5. Dedicated Business Coach
Most brands pair you with a home office coach whose job is to educate, mentor and ensure your success.
Together, you review performance and discuss ways to keep improving. Frequent communication and feedback are common via phone, online and local visits to your operation.
6. Collaborative Franchisee Community
Everyday, you have the chance to compare notes with fellow franchisees living parallel lives. You can lean on top performers to learn how they recruit and retain staff, get customer leads, set pricing and so on.
Franchisors often facilitate this networking via in-house communications channels and by forming peer groups. This collaboration is why it is said that in franchising, “You’re in business for yourself but never by yourself.”
7. Elevated Exit ROI
Franchising gives you the potential to reap a financial trifecta: Excellent income stream, money-saving tax write offs and – when the time comes to sell – a profitable exit to secure your financial future.
To this latter point, a 10-year study by the Marshall E. Rinker School of Business found that franchise businesses sell at a price 1.5 times higher than comparable non-franchise businesses.
“Our research supports the value of a franchise branded business,” the study concludes. “If two people operate the same type of business over a period of years and enjoy similar sales, the franchise business is more likely to sell at a higher price point. Business owners ought to be aware of that information in advance of launching a business.”
Here is the published study in its entirety.
Let’s Not Overlook Work-Life Balance!
The reason we go into business in the first place is to have more time to enjoy the people, activities and lifestyle we value.
Whether it’s family, travel, golf or a litany of hobbies, owning your own business allows you to set your schedule and prioritize what’s important to you – especially if you have a reliable manager running day-to-day operations.
But let’s not kid ourselves: Starting any business usually requires more hours and effort early on. But the hard work pays off once you’ve found your footing.
Want Help Evaluating Franchise Opportunities?
We can help you identify and invest in the franchise business that is right for you. Our personalized ownership recommendations help you save time, reduce risk and invest confidently – with no fee or hidden costs.
Our process starts with a free 15-minute conversation during which we introduce ourselves, learn about you and give you a sense of how we’d work together. You can then decide if you’d like to proceed.
No obligation, no catch – we invite you to chat when you’re ready. You can schedule easily online for the date and time of your preference.
