There are several options when it comes to buying a franchise. Opting for a well-known and award-winning franchise is probably the easiest one. However, ask yourself whether it’s the right choice for you.
Here are a few tips that will help you make a better and well-informed decision about whether you should buy a franchise that is popular and one that has received multiple accolades or choose something else entirely. Here is the list of pros and cons of buying into award-winning franchise brands:
This is probably the most significant benefit of buying a well-known franchise. You are instantly recognized all over. The reputation of these popular franchises will prove to be enough to ensure you find success. When you opt for these businesses, the years of experience they’ve had will quickly make your business a household name. This is an excellent option for you if you wish to gain traction faster.
Well-established franchises have built an excellent external reputation over the years, and have honed their internal processes as well. They have fixed the glitches, and you get to reap the benefits of buying into a well-known, award-winning franchise. Their time-tested internal process will prove beneficial as well. The more refined the operation is, the quicker you will make money. It is vital to keep this aspect in view while making your decision.
Providing support to their franchisees is the number one priority of the franchisor. This is especially true when they are in the beginning stages of starting up the business. Pre-opening assistance like site selection, construction, training, design, financing, and grand-openings are all taken care of by the franchisor. Some franchises are known to give out loans or provide other kinds of financial assistance as well.
The downside of buying into a well-known franchise is that you will face much more local competition. You can inspect your region, gauge how busy other franchises in the network are and whether there is any demand for more. Even though there may not be much competition, it might be a better idea to open shop in a different location. Most franchise networks also allocate specific territories and you may not be able to buy one in a specific location if this is the case.
Well-known and award-winning franchises are usually much more expensive. However, the price is understandable because the years of experience and the investments that have gone into the franchise have made it what it is today. Before casting the business aside just because of the additional expense, think about how you can use this to your benefit. If the research you conducted shows there is local demand for the franchise, it is very likely that you will recover your investment faster than if you choose to buy into a franchise that has no demand.
A franchise is a well-established brand which limits your creativity regarding running a business. This is definitely a downside for franchisees who want to explore or alter the business model. There are further restrictions on what items can be sold, the suppliers you have to use and which areas you can operate in. The franchise business is not for you if you cannot agree to those terms.
More often than not, the answer is yes! The higher cost is indeed worth it because of the benefits you enjoy. However, it is crucial that you conduct proper analysis and be sure that the area you choose needs a franchise like it.
If you want to know more, 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