Franchising is a way of starting a business while using the tried and tested methods of another company. Basically you pay the company for the exclusive right to sell its products or services in a particular geographical region. The company, known as the franchiser, offers you everything you require to meet success in return for your investment.
The franchiser allows you to use its brand name, logos, technology etc for a certain period of time while as you would have to agree to run the franchise according to the company standards. Here are six reasons why you should buy a franchise over starting a your own from scratch.
1. No advertising needed
While opening a franchise, you don’t have to be worried about spending budget on raising awareness in the market. The reason is that your parent company is already a well known brand, meaning customers already know what to expect and so they will come to you naturally.
That is not the case regarding the business you start on your own. There is no alternative to escape from the costs required for spreading awareness about the products or services your firm produces because no one of your customers has learnt about them yet.
2. Easily gain funding
You, as said earlier, benefit from the tried and tested methods under the security blanket of a well established brand name that itself can help you gain funding when you think of any major improvements to your business.
3. Ongoing support
Once you become a franchisee of any particular brand, the franchiser becomes obligatory to protect and build its brand name. You also will be offered ongoing help and support so that you are able to finding new customers and retain existing ones.
4. Financial help
You could also gain financial help in getting your business of the ground as many franchise providers tend to aid prospective franchisees with startup costs, equipment and advertising.
5. You also have the benefit of being located in the prime spots of the high street. Franchisers have specifications of where they would like their franchises located and so choose said locations carefully to ensure the largest amount of custom and usually can afford most of the time, prime spots in high streets and shopping centres.
6. You are more likely to get funding from banks than if you were starting out on your own. As your parent company has a well known brand name, the increased security and reliability this lends will mean that you can get substantial amounts from banks to cover your start-up costs.