Does the dream of owning your own business and becoming the master of your financial destiny have you investigating the franchise business model? Do you have a background in hospitality, management, education, entertainment, social services, cooking, or just a desire to work with youth. Now might be the perfect time - because despite recent economic challenges, franchising continues to grow. Successful franchises have a reliable business system in place that has been tried and tested by the franchisor, its franchisees and most importantly, the consumer. If you have an entrepreneurial spirit and a willingness to follow a proven process, buying a franchise could be the best decision you ever make. Here are some key considerations to help you understand why franchising can be a great investment and why you should buy a franchise.
Why Buy a Franchise?
Track Record of Success and a Proven System
Tapping into an established franchise that already has highly effective branding, working systems, business planning, technology, training, advertising/marketing and support systems in place has its advantages. In an established franchise system, the franchisor has developed systems that work and are appealing to the consumer. Following these systems as designed improves the overall productivity and ensures the success of not only each franchise, but the entire franchise concept.
Turnkey Working Business
One of the beautiful things about franchising is its standardized approach to business with a proven plan and a ready-made system for success. Buying into a franchise system eliminates much of the fear and unknown pitfalls that a new start-up business owner would face. Your business operations and operating plan have been developed, tested, and fine-tuned by existing franchisees. Most everything that is required to operate your business has been defined, measured, analyzed, improved and streamlined to increase efficiency.
Franchise Image and Strong Brand Awareness
Let’s face it, consumers seek out familiarity! A big advantage of buying into a franchise system is being associated with the franchise image and brand awareness that is already recognized by your customers. Consumers are far more comfortable associating themselves with brands they know, recognize and trust than something new and untested.
Higher Likelihood of Success
Another pro of buying into an established franchise system is the higher likelihood your success will be rather than starting a business from scratch. A franchise system offers an established brand coupled to a product or service, which has proven success. Chances are, if you follow the operational methods and business systems the franchisor has in place, you should be well on the road to operating a successful franchise business.
Training programs make franchise systems stand out from every other business or business opportunity. Carefully designed, constructed and presented programs teach the critical elements and components of how to operate your franchise with confidence. Training is of course to ensure that you will operate your franchise efficiently utilizing the most successful methods within the franchisor’s guidelines and helps to eliminate common mistakes new business owners face.
Ongoing Operational Support
When you buy a franchise, you become part of a franchise family as there is a structured support system already in place to provide continuous assistance by the franchisor throughout the life of your franchise. You’re never going it alone! Franchise companies have trained staff dedicated to providing ongoing operational assistance to franchisees. You always have experienced people you can count on when you hit a rough spot or want to share new ideas for growing the business.
Marketing and Advertising Support and Assistance
Marketing and advertising are integral to the success of the franchise program and to the success of the franchisee's business. The franchisor has marketing systems in place that provide you with proven tools and strategies for attracting and retaining customers. The franchisor will provide advertising campaigns, media assistance and other promotional activities for the benefit the franchise system.
Your Own Exclusive Territory
Many franchise systems will sell you an exclusive territory in which to operate your franchise. Franchisors will only allow a certain number of franchises to be open within a certain geographical region and your exclusive territory ensures that no other franchise (within your franchise system) or company store can ever open in your territory.
In today’s world franchising is well understood and widely accepted by lending institutions. Lenders are usually quite comfortable financing the purchase of a franchise. This is not only because franchises have a proven track record, but because lenders look at successful franchise chains as inherently having a lower risk of default than a “mom and pop” startup business.
Leverage in Purchasing
Franchise systems can usually take advantage of leveraging purchasing power generated by their multiple locations to negotiate prices for supplies, advertising, etc., at usually significantly lower levels than one could achieve with a one store business. Keeping costs low can help ensure that you stay competitive in the marketplace, which is something independent businesses often have a hard time accomplishing.
The Federal Trade Commission (FTC) regulates franchising in the United States on the federal level and requires every franchisor to prepare an extensive disclosure document and to give a copy to any prospective franchise purchaser before he or she buys a franchise. The disclosure document is called a Franchise Disclosure Document or FDD, and provides you a wealth of information about the franchise system which will enable you to perform due diligence and make an informed decision on whether or not to buy. The FDD contains information about required fees, basic investment, bankruptcy, history, litigation history, the franchise agreement… etc
Can you avoid all risk when starting new business venture? Of course not. But a big reason to buy a franchise is that it will help you avoid much of the risk you would face if starting a new business. Although purchasing a franchise doesn’t guarantee a problem free business, a franchise system does offer established systems that are designed to enhance your chances for success, longevity and profit.
Although a proven franchise business model does not guarantee success, it certainly alleviates many of the business startup cost, mistakes, fears and unknowns. Franchise success must be combined with the right franchisee’s motivation, determination, business acumen and willingness to follow a proven process. The above information provides food for thought if you are considering buying a franchise or even starting your own business from scratch. Sure, you have to pay royalties in a franchise system which you would not do if you owned an independent business, but, you have the support of a proven franchise system and its many assets which may be well worth what you get in return. The goal of owning your own business and being your own boss can be met very nicely through purchasing a franchise which is a wonderful approach for most business people looking to own a business.
Now, your dream of being your own boss may be closer than you think.
Young Chefs Academy® is offering exciting franchise opportunities that provide owners with earning potential and a growing business opportunity in the children’s service industry. Check out Young Chefs Academy® for information on immediate franchise opportunities available nationwide. Our Young Chefs Academy® Franchise Development Team is available to help you start the process of business ownership in the children’s service industry with Young Chefs Academy®.