Thirteen Reasons Why Franchising Could Be Right for You

30/08/2018 10:00 | Start a business

In the UK, franchising is becoming an increasingly popular business model. As more and more business-minded individuals start their own franchise units, we thought wed take a look at 13 of the top reasons they might be doing so.

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1. Franchises are successful businesses

You dont just magic a franchise out of thin air. All franchises begin life as successful businesses. Theyre run by businesspeople who have dedicated a great deal of time to ensure their success and who now feel that theyre ready to expand. Theyre also a special type of successful business. Theyre a company with a business plan that they believe is replicable in a number of different markets. This makes the franchise system the ideal place to be for those who like to invest in a business with a history of success.

2. Theres a plan

All businesses need to formulate a plan and try to stick to it as best as possible. With the franchise business model, that plan already exists. All franchisees have to do is follow the business plan to the letter. Of course, its not quite as simple as that. There are always obstacles and complications, but thats where your business abilities come into play.

3. Help when you need it

One of the key benefits of the franchise system is the fact that you can request help and assistance whenever you need it from an experienced franchisor. Essentially, the franchisor is there to guide you through the process of setting up a franchised business and providing you with the skills necessary to succeed. They also benefit from the arrangement, but it's still a win-win for both parties.

4. People are aware of the brand

Franchises are also a good choice because they've already devoted a considerable amount of time to raising their public profile. One of the hardest parts of founding your own start-up is getting your name out there and reassuring potential customers that youre worth buying from, even though you have no history and no recommendations. With franchising, that history and awareness are already there. Franchise brands are powerful because they allow people to exploit a pre-existing attachment to a business.

5. Be flexible

The vast majority of franchises offer their franchisees a high degree of flexibility. Some of this is due to the fact that you now run your own business. Some of its due to the ability to chose between part-time and full-time franchises. Franchisees can also choose franchises that require a business premises or those that you can run from home.

6. A team that knows how to advertise

Advertising is one of the most challenging aspects of business management. Companies can spend extraordinary amounts on spreading their name, only to find that their efforts haven't reached the right audience. It's also a fairly costly endeavour. Franchises often benefit from a central management team that has plenty of experience handling the advertising side of operations. Theyll either train you to do it yourself or organise local and national marketing campaigns themselves.

7. Get trained on the job

Theres no training experience quite like franchising. Whereas most jobs require you to have trained beforehand and gained some kind of qualifications, most franchises will enrol you on a training programme to quickly get you up to speed. These courses vary in length and should cover most of the aspects of business management, marketing, and day to day operations youll need to succeed.

8. Economies of scale

Small start-ups dont have the purchasing power of larger organisations. They simply dont have the capital necessary to purchase items in as high a quantity. This makes goods more expensive and puts the smaller business at a competitive disadvantage. Franchising benefits franchisees by integrating them into a large network of buyers who can combine their spending power to benefit from lower prices.

9. Guidance on location

Not all businesses require a brick and mortar store but many do. If youre looking to open a franchise that will operate out of a physical premises, one of the biggest challenges youll face is finding a suitable location. Fortunately, many franchises will help you identify and assess potential sites and then negotiate the lease.

10. Start with a helping hand

As well as finding a suitable location, most franchises will also help you equip your new business premises and prepare it for the opening. They may offer you good rates on leasing equipment and they'll often be able to guide you through the fitting process, ensuring that your business is as customer and user-friendly as possible.

11. Enjoy being part of a network

Franchises are large networks of individual franchisees connected to one another through the central franchisor. Though it's more common in some franchises than it is in others, many franchisors organise networking events for their franchisees. These can be both invaluable learning experiences and enjoyable social events.

12. Its not risky business

Whereas most independent business ventures are considered relatively high-risk propositions, franchising is regarded as one of the least risky investments around. This is largely due to the reasons listed above. They utilise already successful business models, are able to provide a great deal of guidance and support, and are organised into large, mutually beneficial networks of franchise owners. All of this is demonstrated by franchisings low failure rates

13. Low failure rates

Compared to other types of Small and Medium-sized Enterprises (SMEs), franchises have a much lower failure right. In the UK, 97% of franchise units report profitability and just 4.6% of franchise units change hand in a year. When compared with other business models this is astoundingly low.

Conclusion

Franchising is an attractive model for a wide variety of reasons. Generally, it offers business owners security, stability, and support. It boasts low failure rates and is nowhere as near as risky as other types of business model. If youre looking for something that will make you money, but feel as though youll need support or dont want to risk too much, franchising could be for you.

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