Are you looking for a new business opportunity in 2016? Buying a franchise may be a good decision for you. There are many benefits to both the franchisor (corporate) and the franchisee and is why franchising has been so successful. How successful is franchising? Well, the U.S. Added 25,600 Franchise Jobs in November alone, According to ADP National Franchise Report. I would say, that's a pretty big deal!
Franchising provides benefits for both seller (Franchisor) and buyer (Franchisee). Before you start talking to the experts, you should get a sense of some of the key advantages and disadvantages of purchasing a franchise.
Brand Awareness - Customers seek out the reliability and familiarity of their favorite brands, which have been established over years or decades. When you advertise a known brand, customers can come ready-made.
Speed to Market - No need to re-invent the wheel. Choosing an established, reputable franchisor will allow you to open for business more quickly than if you had to research everything all on your own.
Marketing & Advertising Assistance - The franchisor should have a plan in place that allows its franchisees to rapidly get to market with their products or services. Some franchisor’s marketing involves automated solutions that are designed to help franchisees at the local level and helps the franchisor easily see where marketing efforts may need to be adjusted. At Market Loyal, we work with the Franchisor directly to help implement online marketing strategies to make sure that each local franchisee is successful.
Bad Press - At no fault of your own, bad press created by another franchisee can negatively impact your business.
Royalty Payments - Franchisees are required to make royalty payments in return for support in operations and advertising and some franchisers may not provide all the necessary resources for the success of your particular location.
Restrictions - Most likely, you'll have no control over the goods you use and the cost of those goods. Franchisors can control the look of your site down to the paint color and if you're a trade/craft oriented franchise you may have little input regarding the jobs you can take or turn down.
When it comes time to decide on buying or not buying a franchise , you will have to weigh these pros and cons at the very least. There are many other things to consider when purchasing a franchise so, before you sign any type of agreement be sure you do your research!
Do you currently have a business that you want to turn into a franchise? We recommend looking at this company for tons of resources: iFranchise Group