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Advantages of Franchise Ownership


Why to invest in a franchise


You could start a business of your own without involving anyone else other than your advisors – an accountant, a solicitor, and usually a banker. But many people who want to be their own boss would prefer to do so within the comfort zone of a tried and tested business model, and the statistics are there to back up such a decision. Industry estimates state that around 50% of independent startups fail within their first four years, thanks to incompetence and lack of experience. 


In franchising, this risk of failure is greatly reduced. Someone has already done the work establishing the business, has ironed out the wrinkles, and has gained the experience needed. The franchisor is prepared to share their expertise with franchisees and provide them with tools, in return for a financial consideration. Basically, a franchise is a conveyor belt to faster, cheaper business ownership and success.


And although like anything else in life there are pros and cons involved, the benefits of franchising outweigh the disadvantages. Obviously no business alliance should be entered into without diligent evaluation, but the typical franchise system has many advantages that suit ambitious individuals nicely.


The Benefits

  • The business has already been proven to work, and the network of busily trading franchisees is testimony to that. The franchise has been in action long enough to demonstrate consistently successful results, which should be fully documented.

  • Franchisees are given full initial and ongoing training, which helps them to set up, develop and run the business to the best of their ability. Sometimes their business partner and/or key staff receive training too.

  • The brand is established. People recognise it. It’s embedded. When a franchisee applies to a bank or other investor for a loan, they are much more likely to receive funding if the brand name is already known and respected.

  • The franchisee is their own boss. Now they can escape the frustration and politics of answering to someone else, and benefit directly from the hard work they put into a business. Plus they have greater control over how they live their now flexible life. They want to work from home and spend more time with their family? Not a problem.

  • The franchisor helps to find a good location that will deliver traffic if that’s what is needed (e.g. for retail or food outlets) or that will be cost efficient if visibility is not paramount (e.g. for cleaning or home improvement businesses).

  • Marketing tools and ad campaigns are provided both nationally for the brand and locally for individual branches. The majority of franchisors also help franchisees make major local impact with a publicised launch of the business.

  • Franchisees receive ongoing support from good franchisors, delivered via phone, a company intranet, newsletters, regular visits by a representative from the corporate office, regional meetings and annual conventions. They can rest assured that they are not alone.

  • Centralised purchasing is a feature of many franchises where the franchisee benefits from discounted pricing on supplies such as goods for a retail store or ingredients for a restaurant. This is because the items are being bought en masse.

  • With over 900 franchise systems active in the UK, there are many different types of franchise opportunities available, ranging from micro businesses and low-cost investments to something more substantial. For franchisees not ready to leave their 'day jobs', there are plenty of offerings that require only a part-time commitment that grows gradually. Ambitious entrepreneurs, who want to totally commit themselves to owning a business, have a vast range of choices.

  • For many franchisees, running a profitable business brings pride and a sense of achievement. It is a chance to prove to themselves and their communities that they can be successful.

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