Five reasons to invest in a franchise
If you’ve always dreamed of owning your own business, why not consider franchising? The booming sector offers the best of both worlds – not only does it afford you the opportunity to own a slice of a well-known brand, you’ll have the backing and support of an established franchisor.
The beauty of franchising is that it caters to people from all walks of life, such as those seeking a career change, people looking to invest their savings, and even young individuals with an entrepreneurial spirit.
Below are just a handful of the benefits you can expect to enjoy should you invest in a franchise business.
1. Financial gain
Franchising is a secure industry, and the likelihood of franchisees making a profit tends to be quite high. The figures speak for themselves – 90 per cent of all UK franchises are successful, and the industry turns over £13.7 billion per year.
Franchise businesses demonstrated their longevity during the recession, and in 2009 turnover increased by an average of 3 percent1.
1*BFA survey 2010
2. Ongoing support and training
Franchisors generally provide new franchisee with extensive initial training – if they fail to do so then it’s essentially their business that will be at stake. While training will vary depending on the brand and industry, franchisees can expect an induction period of between two and eight weeks, which comprises both theoretical and on-the-job training.
Existing franchisees aren’t forgotten either – franchisors tend to offer refresher courses, and they deliver an annual conference to bring franchisees within the system together to share their experiences and discuss trends within the industry.
Franchisors generally handle national marketing campaigns, with franchisees responsible for local area marketing.
3. Established brand and customer base
When it comes to attracting customers, brands have a powerful pull. Consumers will gravitate towards a brand or product they know, meaning you won’t have to build your customer base up from scratch.
You will not be required to devote as much time to vying for the attention of your local customer base, which means you’ll be able to focus on securing their loyalty through the delivery of superior customer service and a top quality product.
4. Banks like franchises
Banks are generally more likely to lend money to franchisees as opposed to independent business owners, due to the reliability of franchises to become successful.
Franchises with a proven track record are more appealing to banks, as they are less likely to fail. There is no real guarantee that a brand new, independent business will succeed in the long run, and so banks are less likely to lend to lend to such business owners.
5. You’re the boss
Many franchisees talk fondly of the fact that franchising offers them a greater work/life balance and more flexibility than the corporate world.
Franchisees can choose the brand in which they want to invest, and as long as they operate in line with their franchise agreement and the franchisor’s operations manual, they can call the shots when it comes to the day-to-day operation of their business. This includes the hours they work, they staff they hire and the level of local area marketing they choose to engage in.
Courtesy of Reed Commercial