Pretty much any service that springs to mind can usually be franchised and many already have been. Looking through many of the online franchise websites will soon give you a notion of the quantity of franchise options accessible to more or less anybody with some capital to invest, a keenness to gain knowledge, a loyalty to dedicate yourself to the system and work hard.
With that in mind what could be the advantages to a franchise system over traditional self-employment? On the outside it could appear like you are actually paying a franchise fee to another company to just work under their brand only, but there are some notable differences that can potentially make a franchise business a preferred choice.
An tried and tested business system
The heart of a franchise opportunity is its established system. A franchisor generally starts out as a conventional operation who, after proving the business is profitable, will often seek out further ways to expand their already successful business. The spirit of the franchise idea is, very simply, the duplication of a proven business model. This offers a considerable benefit of self-employment in that the franchise owner has previously piloted the business and documented it which has the advantage that it can followed by another giving them the ability to replicate their success.
Branding and Customer Awareness
Obviously there are the big name, familiar, food chain franchises that by the influence of their branding and advertising stand for substantial advantages when compared to setting up your own anonymous named business. However even with less significant, lesser identified franchise brands, the buyer perception that it is division of a much larger group can in itself bring safety and belief to the customer that the franchise is not just a here today, gone tomorrow business but there is a larger group underneath it.
Financing
Many major banks look favourably on franchise start-ups because of their demonstrated track record. This can be especially true for fully established franchises given that the franchise departments of the major banks generally keep records on what franchise businesses appear to be performing well. This can be a plus over usual self-employed start-ups that could be more of a challenge to obtain financing and support from the bank.
Backup
A decent franchisor will offer backup and training to ensure the best possibility of success. Ultimately, the business belongs to the franchisee and he or she is liable for its failure or success. On the other hand, when times are challenging or inspiration is low it should mean there is a person to talk to for advice and help.
These are only a few of the most important advantages in choosing a franchise system when compared to going it single-handedly. In spite of this, investing in a franchise is like investing in any other business venture. Taking on any investment demands careful research to make sure of well clued-up decisions and not throwing warning to the wind for the reason that a business opportunity has a ‘franchise’ label. Judge thoroughly, do your research, speak to current franchisees and take your time.