There are many ways to enter the world of business and cement your status as a business leader. One is taking ownership of a franchise. It’s a career endeavour that’s bound to earn you a great deal of business experience, and it comes with several perks. Fitness franchise brand F45 Training has collaborated here to tell you about five pros that come with owning a franchise.
1. There’s no need to worry about a startup stage
Starting up your own business is another way of entering the business world, but it’s a particularly arduous process. Writing for Forbes, Jared Hecht mentions certain aspects of the startup process. He notes how “you have to write a business plan, conduct market research, create a minimum viable product, test that product, and then scale (if testing goes well, that is).”
When you buy into a franchise operation, however, and take ownership of a franchise, you don’t have to worry about all those steps. That’s because they’ve already been taken care of, and the fact that the franchise operation exists means that the startup process was successful.
2. Your business is already recognised
It can take a great deal of time for a startup to receive recognition, but buying a franchise means becoming a representative of a brand that is already well-established. As a result, you’ll already have a substantial customer base.
3. There’s a system of operations in place
All franchises are run according to a system of operations set in place by the founders of the franchise. This system dictates everything from services rendered to administrative processes, and each and every franchise has to make use of this system in order for the network to achieve a sense of consistency. If a brand is multinational, for example, then one of its franchises in the UK cannot operate completely differently from one in the US.
The reason a system of operations is so advantageous is that it can easily be learnt. If a franchise is rapidly expanding then its system of operations is concise enough to be quickly and successfully replicated in multiple locations. This means that when you come on board as a new franchisee, you can quickly and easily be taught the ins and outs of the system. It also means that any new employees you hire can also be easily trained.
4. There’s substantial purchasing power
Large businesses have a great deal more purchasing power than smaller business. As a franchisee, you will benefit from that. The franchisor will be able to purchase necessary and valuable equipment on behalf of franchisees. As Paradigm Franchise Group explains, “it is often possible to obtain lower-cost goods and supplies through the franchisor. Lower costs result from the group purchasing power of all franchises. To protect this benefit, most franchise agreements restrict the franchisee from purchasing goods and supplies through other sources.”
5. Finances are more easy to access
When you buy a franchise, one of the most important matters to be dealt with is, of course, the fee. The US Small Business Administration refers to the fee as “the cost of entry”, and explains that “paying the upfront franchise fee unlocks the door to the franchisors’ proprietary business systems and more. You get the complete setup. The franchise fee is literally a license to own and operate the franchise business. That’s why you must pay it.”
You might, however, be able to get some financial assistance—mainly thanks to your franchisor, who can arrange for a sum of money to be loaned to you. Paradigm Franchise Group notes how “lending institutions find that such arrangements can be quite profitable and relatively safe because of the high success rate of franchise operations”. Of course, the loan will still be your responsibility, but your franchisor’s assistance will increase the probability of its approval.
Buying a franchise is a big career endeavour to undertake. But, it’s worth it if you consider all the benefits you can enjoy as a franchisee.