If you are considering purchasing a franchise, but aren’t too sure whether it’s a good business proposition, you aren’t alone.
Most prospective franchisees go through this quandary. You may feel that it’s simply better to duplicate the efforts of the franchise rather than become part of it.
However, copycatting isn’t something that works in a business place. This is particularly true in times when competition is very high in almost every field. Take a look at the advantages of owning a franchisee business:
This is probably one of the most important things that a franchise network offers franchisees. The strategic identity is effective, and a cumulative market impact gives a boost to your profitability from the get-go.
Credible and established franchises have very recognisable logos and branding and they also spend a significant amount of money on marketing and advertising. As a new entrant into the franchise space, you are able to take advantage of this established market image.
These businesses have vast experience in their respective industries, and the public knows what to expect from their outlets. As a franchisee of a particular brand, you are required to fall in line with all the system standards set up by the network. And this gives customers the assurance that they will get the same quality of products and services at your outlet as in any other outlet within the franchise.
Regardless of the business you are in, the only way that you can reach new audiences is to have a very good advertising and marketing strategy. And the simple fact is that effective marketing can be quite expensive.
In today’s competitive times, even with an outlet in a prime location, customers will be slow to come in if they aren’t familiar with what you have to offer. In comparison, a franchise network would offer a very solid advertising campaign, and this would be included in the fee you pay them.
When you are considering a franchise, the advertising and marketing aspects become a huge benefit. As a franchisee, you are required to invest a specific amount in local advertising and marketing as well. The franchisor would approve the materials before you run them, in order to make sure that they are in line with the brand’s image and standards.
Launching a privately-owned business can be quite challenging, especially if this is something you are doing the very first time. However, when you work with the franchisor, their experience in this space can benefit you significantly. They know exactly how the store opening needs to be done and also have set standards in place in relation to the daily operation of the franchise.
The franchisor will also have a grand opening strategy in place to give you a good start. Aside from this, you can coordinate with other franchisees within the network that have experience with opening their outlet/s and gain some insights from them.
Franchise systems provide a number of advantages with reference to operating experience, once your outlet is up & running. Since the network has multiple franchise locations that gives you purchasing power. It means you can get goods, inventory, and supplies at far lower costs than what they would ordinarily cost.
You also enjoy legal protection as the network will have a legal department that handles issues such as challenges with labour, accidents, and lawsuits. In short, the support system that a franchise network provides is invaluable to you as a franchisee. Since your franchisor is invested in your success, they will provide support at every stage. They are interested in expanding their network and brand.
If you want to know more about franchising, feel free to get in touch with us at The Franchise Institute. You can call us on 1300 855 435 or fill in this contact us form and we’ll reply as soon as we can.
Thanks for reading,
The Franchise Institute Team
1300 855 435