- Much of the work needed to launch a business idea has already been done. Products and services will have been established and tested. This includes already recognized branding and trademarks. The franchisor will also have a good idea of what locations and demographics work best for their system.
- Not as much, if any, experience is needed to start. Training provided by the franchisor will help franchisees gain or bolster the skills required to operate the franchise. Many franchisors also offer additional training at the franchisee’s request.
- Support from a larger network of businesses. Not only does the franchisor give you support in the form of training, an operations manual for you to refer to, and additional ongoing advice, you can also get support from other franchisees in the network. Annual conventions or meetings are a common occurrence for franchises.
- Ability to tap into the collective buying power of the franchisor. In many cases, the franchisor has developed relationships with providers that allow its franchisees to purchase goods at a lower cost compared to the price independent owners of a similar business may be able to negotiate for themselves.
- In cases, financing may be easier to secure. Banks and other lenders are sometimes more apt to loan money to those looking to buy a franchise because of an existing knowledge of the franchisor’s product or service.
by Renee Bailey from Franchise Direct
