ADVANTAGES OF FRANCHISING
Buying a franchise is a lot like cloning a successful business and opening it in your own community. The only real differences include the motivation and talent of the new owner (YOU) and the opportunity presented by the location in which you decide to open a new franchise.
Franchising is popular because you are ‘in business for yourself, but not by yourself’. The franchisor provides access to an established service and/or product and gives the franchisee a time-tested methodology of how to operate the business model. Franchise owners receive the benefit of the franchisors knowledge and thus mitigate many mistakes and issues that independent business owners may make on their own. This is one of many reasons why people choose to buy a franchise.
Franchises often also allow a prospective buyer to thoroughly research the brand, the model and the investment before any spending much, if any, resources. Franchisors will give you the tools so you can research the business BEFORE you buy a franchise, including access to existing owners in the franchise system!
For these reasons, franchise businesses are considered less risky when compared to opening a non-franchised business. For years, statistics compiled from The Small Business Administration and the United States Department of Commerce illustrated that franchised business have a significantly lower failure rate than new independent businesses. And while franchises help mitigate failure, they do not guarantee success. Owning a franchise is hard work, and may require a large commitment of time, talent, and money from the buyer. Prospective buyers should analyze their objectives and willingness to fully commit before purchasing any franchise business.