Franchising
Opportunity
Are you thinking
about buying a
franchise but
you are not sure
if the idea is a
good one? Here
are ten good
reasons to go
ahead and pursue
your dream of
owning a
successful
business.
1. Proven
business:
Opening a
franchise
comes with the
advantage of
knowing that
this business
has been
successful in
other locations.
The idea and
process of
running this
business have
already been
proven.
Therefore the
learning curve
in operating the
business can be
virtually
eliminated.
2. Lower risk:
Risk of failure
is much lower
with a franchise
than starting a
brand new
business. There
is a much higher
likelihood of
success if the
same business
has done well in
other areas.
3. Established
customer base:
The brand name
that comes with
the franchise is
already
recognizable to
consumers,
without the
franchisee
(purchaser)
having to spend
a lot of money
and time in
establishing a
new brand. The
brand awareness
provides
security and
trust to the
customer who
expects uniform
quality to be
provided.
Therefore a
customer base is
already
established.
4. Marketing:
The franchisee
can benefit from
any advertising
or promotion
that the
franchisor
(owner of the
franchise) does
at the national
or local level,
without
absorbing the
cost. The
franchisor can
also provide
input to the
franchisee on a
local marketing
plan.
5. Initial
and ongoing
support:
Training and
support is
usually part of
the deal. Since
the franchise
company has a
vested interest
in how well you
do, ongoing
training, system
upgrades,
product
enhancements,
and question and
answer resources
are provided.
The franchisor
offers
experience to
franchisee in
such areas as
accounting
procedures,
personnel and
facility
management, and
business
planning.
6. Exclusive
territory:
Rights are
exclusive for
the territory,
with no other
franchises sold
in the same area
as
competition.
7. Ease of
funding: Many
times obtaining
financing for a
franchise is
easier since the
franchise name
and reputation
are usually
recognized by
the lenders.
Therefore, banks
are more likely
to fund the
franchisee.
8. Purchasing
power:
Relationships
with suppliers
are already
established;
affording the
opportunity to
buy in bulk,
enabling a great
deal of savings
for the
business.
9. Pre-purchase
information and
research: The
potential
franchisee can
make an informed
decision because
of information
that can be
obtained prior
to purchase. The
Federal Trade
Commission
requires
franchisors to
provide the
franchisee with
certain
information
including the
company's
history,
information
about the
officers,
litigation
history, audited
financial
statements, the
franchise
agreement, and a
current list of
franchises with
owners' names
and contact
information.
10. Solid
economic niche:
Franchises cater
to consumers'
specialized
needs. Consumers
tend to prefer
doing business
with companies
that meet their
specific needs
and the
franchise
industry has
been fitting the
bill.
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