I'm planning to have a small business franchise. I chose this for a number of reasons. Business franchise opportunities have many benefits to offer. But before I lists some of the advantages of a business franchise, let's talk about franchising.
What is Franchising?
Franchise is a business method that involves the licensing of trademarks and methods of doing business. Franchising is when a franchiser (a person or company that grants a franchise) licenses their brand and their expertise to a franchisee (a person or company to whom a franchise is granted).
A good example of franchising is McDonald's. McDonald’s has always been a franchising company and they rely on their Operators or franchisee. Approximately 85% of McDonald's US restaurants are owned and operated by independent business men and women.
Benefits of Business Franchise?
Here are some of the advantages that I can see in venturing a business franchise:
1. Training
Most franchisers have a training program that will help franchisees to familiarize with the product or services they offer. This program lets you acquire skills rapidly through the initial training program, and then gives on-site and ongoing training to reinforce those skills. It will prepare franchisees to run their own new business franchise.
2. Marketing & Advertising
As a small business owner does not have the luxury to spend money on national advertising campaigns. Most of the franchisers usually do the marketing. Franchisee can also benefit from marketing and advertising that the franchisers already created like their logos, stationary, brochures and websites.
3. Buying Power
As a franchisee, you will benefit from the collective buying power of the parent company as the franchiser can afford to buy in bulk and you’ll be able to take advantage of the savings that are offered.
4. Reduced risk of failure
This is the main advantage of buying a business franchise. With franchising risk of failure is close to zero. This can be done by buying an established concept that has been successful. Make sure when you buy a franchise, you already know the business idea works, the brand works, and that there’s demand for the product. This is one reason why many people prefer opting for the franchise route rather than starting a business from scratch.
These are just some of the advantages of franchising. I am not discouraging anyone form starting an independent business. But if you are looking to reduce the risks associated with going into business on your own then a business franchise might be right for you.
What is Franchising?
Franchise is a business method that involves the licensing of trademarks and methods of doing business. Franchising is when a franchiser (a person or company that grants a franchise) licenses their brand and their expertise to a franchisee (a person or company to whom a franchise is granted).
A good example of franchising is McDonald's. McDonald’s has always been a franchising company and they rely on their Operators or franchisee. Approximately 85% of McDonald's US restaurants are owned and operated by independent business men and women.
Benefits of Business Franchise?
Here are some of the advantages that I can see in venturing a business franchise:
1. Training
Most franchisers have a training program that will help franchisees to familiarize with the product or services they offer. This program lets you acquire skills rapidly through the initial training program, and then gives on-site and ongoing training to reinforce those skills. It will prepare franchisees to run their own new business franchise.
2. Marketing & Advertising
As a small business owner does not have the luxury to spend money on national advertising campaigns. Most of the franchisers usually do the marketing. Franchisee can also benefit from marketing and advertising that the franchisers already created like their logos, stationary, brochures and websites.
3. Buying Power
As a franchisee, you will benefit from the collective buying power of the parent company as the franchiser can afford to buy in bulk and you’ll be able to take advantage of the savings that are offered.
4. Reduced risk of failure
This is the main advantage of buying a business franchise. With franchising risk of failure is close to zero. This can be done by buying an established concept that has been successful. Make sure when you buy a franchise, you already know the business idea works, the brand works, and that there’s demand for the product. This is one reason why many people prefer opting for the franchise route rather than starting a business from scratch.
These are just some of the advantages of franchising. I am not discouraging anyone form starting an independent business. But if you are looking to reduce the risks associated with going into business on your own then a business franchise might be right for you.
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