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Why Invest in a Franchise?

Here’s Nine Compelling Reasons

by Brian LaCour
Certified Franchise Consultant

When you’ve got the entrepreneurial itch, you might be weighing whether to go it alone or invest in a franchise. Here are nine arguments in favor of the second option.

1. You get off to a head start with the backing of a named brand. By purchasing a franchise, you’re often buying into a business with a brand that’s already been developed or emerging, marketed, and, most important, familiar to consumers.

2. You can choose the franchise that accommodates your lifestyle. Maybe you want to work from home or work only certain parts of the year. Perhaps you don’t want to manage employees. Investing in a franchise allows for this flexibility. Franchises are diverse, and many of them don’t require employees or office space. You can opt for a franchise that’s right for your interests and skills.

3. You receive customized training designed to get you up to speed with your business. In a mix of classroom and on-the-job training, the franchisor will teach how to operate the business as well as the techniques particular to the brand. The transfer of knowledge during training serves as the foundation of a successful franchise network and is not available to someone in business by himself.

4. You benefit from intellectual property, trademarks, and patents. Many franchisors grant you access to proprietary technology or software that’s designed specifically to their brand and gives franchisees an edge over their competitors.

5. You benefit from strategic partnerships and agreements. By joining a franchise network, you become part of a much larger, more powerful network than you could have on your own. This applies to everything from negotiating the purchase of advertising to making supply arrangements.

6. You increase your chances of success. Franchise ownership increase your chances of being in business five or 10 years later and being profitable.

7. You have a team protecting the integrity of the brand. Being part of a franchise network requires adhering to rules and regulations. The upside is that there are standards for quality control among all franchisees. In addition, a strong franchise network will ensure all the franchisees are operating at peak performance.

8. You follow a formula that has proved successful. One discouraging aspect of starting your own business is testing the products and/or services you’re trying to sell. Going out on your own requires a leap of faith. A franchise network has already found what works.

9. You’re not alone. Starting a business can be intimidating. It is a test of endurance as you navigate unfamiliar territory. With a franchise, your network is just a phone call, email, or text message away. A support team will assist you when you open and as you continue to grow your business.

Brian LaCour

Brian LaCour has more than 20 years of business leadership experience in driving fiscal results, strategic planning, saving costs, increasing revenue, streamlining processes, and developing top performing teams. LaCour’s passion for helping people led him to the role as president of the International Franchise Group. Call LaCour at 561-502-7283 or email him at blacour@internationalfranchisegroup.com. Visit www.internationalfranchisegroup.com.

Why buy? Weigh everything in the franchise package

Audra2019-04-03T15:52:51-04:00April 2nd, 2019|Tags: franchise advantages, franchise systems, franchise training, franchisee support systems, market development, potential franchise buyer|

Why buy? Weigh everything in the franchise package

by Geoff Batchelder

Should I purchase a franchise or go it alone with a business? This is a question every potential franchisee should think long and hard about—along with the franchises being considered—before deciding whether to buy.

Most of the potential franchise buyers I speak with think the answer is name recognition. While that’s something to be aware of, it’s not the most important benefit that a franchise can provide. Systems, training, support, and market development will often have a much bigger impact on your potential success than name recognition.

First, let’s talk about systems. Look for operational efficiencies that can speed your time to market, saving you money along the way and starting the flow of revenue in a time frame that you could not attain all by yourself. This benefit alone can offset the franchise fee.

Is there a “project launch” road map of steps to follow from the day you sign the franchise agreement to the day you hang out the open-for-business sign? This can be a huge benefit in helping you avoid costly, time-consuming mistakes.

Are there vendor arrangements in place? Often, the pricing received through a franchise offers a discount you could not get on your own.For instance, The Flying Locksmiths and WaveMAX Laundry have major purchasing discounts in place and pass the entire discounts through to the franchisee. Having these arrangements in place, rather than needing to line up your own suppliers, can be a huge time savings
even without a discount. How about service offerings that will benefit your customers? A call center to handle inbound calls and scheduling is a huge benefit for your customers and something you can’t provide on your own.

As for training, make sure you understand the topics to be covered. Assess the training. Once it’s completed, are you confident that you’ll possess the knowledge you need to be successful or on your way to success? Do different subject-matter experts deliver various parts of the training? Do you receive both classroom and on-the-job training?

Support may be even more important than training. Be sure to ask existing franchisees about support. After training ends, are the franchisees left on their own, or is there a steady stream of ongoing support and mentoring? Granted, different business models will require varied levels of support, so it’s not always an apples-to-apples comparison, but make sure the franchisees feel that they’re provided with all the support they need to continue growing their businesses and that any problems are dealt with on a timely basis.

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Finally, consider market development. How will you grow your business and beat the competition in your area? National advertising programs are not always the answer, and for many businesses, they don’t make sense. The business may be built on local networking and relationship-building. Maybe market development is accomplished through local advertising that’s targeted to specific demographics. Does the franchisor have any metrics in place to show what works? How do the existing franchisees feel about the market development programs?

If the franchise you are evaluating doesn’t have these benefits in place, you may want to check into alternatives.

GeoffBatchelder Geoff Batchelder has been a franchise consultant and franchise development expert for the last 10 years after spending 25 years focusing on business development in the high-tech industry. Contact him at 1-877-222-3722 or geoff@compassfranchisegroup.com, or visit www.compassfranchisegroup.com.