If you ask a potential franchisee why they feel they want to enter into this space, you will get varying answers; different people have different priorities and wants and that’s what drives them to look for better careers and business opportunities in life. Let’s take a look at some of the most prominent reasons why franchisees buy franchises:
When surveys are conducted in the franchising industry, it emerges that almost 40% of people that decide to venture into this space, do so because they perceive that this path will offer them an improved lifestyle. Every potential franchisee has their own idea of what that lifestyle should be, but that’s what an overwhelming majority franchise owners want and value the most.
The concept of lifestyle is very fluid and is bound to vary based on individual circumstances and demographics such as age and gender as well as aspects such a likes and dislikes, family, friends, interests and hobbies etc. For some people, their idea of a great lifestyle may be to spend their weekends paying golf, while others may feel that their ultimate idea of a grand lifestyle is to make a couple of foreign trips each year.
Some people feel that they would be able to add more value to their lives if they were able to spend more quality time with their family; while others may feel that having less stress in their life equates to an excellent lifestyle. Regardless of what different people’s definition of lifestyle is, it’s almost always synonymous with leisure. In simple words, a great lifestyle would probably be one that gives you the flexibility to do the things you really like.
Interestingly, a number of franchises are also promoted on the basis that the franchisees will enjoy a very good lifestyle; the indication here being that they will have much more income and time to indulge in the leisure activities they want. Lifestyle for most individuals isn’t looked upon as work, but more of the outcome of the work they do.
The next biggest contributing factor to the decision of acquiring a franchise is the standing of the brand in the market as well as the support that the franchisor provides. Around 30% of people feel that this is an important factor for them and most potential franchisees strongly believe that the franchisor will provide them support, complete franchisee training, and help them develop the skills that are required to run a successful franchise.
This perception is often an offshoot of the success stories of the other franchisors in the network, the popularity of the brand in the market and the demand for that particular product or service; it goes without saying that all the marketing and advertising efforts that the franchisor puts in also has a role to play in this common perception that potential franchisees have.
Those who are venturing into this space for the first time place a premium on working on the basis of a tried, tested and proven business model. In doing so, a potential franchisee assumes that the risk of failure is either significantly reduced or eliminated entirely.
The other major factor for franchisees to decide to buy a franchise is that they get to be their own boss and for most, acquiring a business is the ultimate form of financial success. Higher income and skills development are the other factors that attract potential franchisees as well.
If you want to know more about setting up a franchise business or want some advice on 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