Benefits of Franchising

There are many benefits of franchising. The benefits of becoming a franchisee are that the franchisor has already established a profitable business model that is tried, tested and proven to be successful. The products or services that they provide are in demand and could be supplied and sold or provided in new areas, counties or even countries as their reputation and brand awareness increases.

Another benefit of franchising is that the franchisor has already come up with a business concept, put it through the development process, and ironed out initial operational problems. They will be in a position to train, provide suppliers, and understand the marketing to find new customers, enabling them to support the franchisee in starting their new business. Another benefit of franchising is having access to a network of experience and support, reducing the time to becoming successful.

Franchisors with a well established track record of success will be recommended by trade bodies and organisations and may have support from financial providers for assisting in the start up costs. Brand identity and marketing strategies may also be provided offering numerous added benefits of franchising in your area.

All franchisors will already have been independently recognised as a business model that can be successfully repeated by working with new franchisees in new areas. The franchisor will therefore be in a position to provide skills training and have an operating business system for running the business already set up.

A further benefit of franchising is that your customers will understand that you offer a consistency of value and service based on existing established franchises. A key benefit of franching is that you are being provided with an established route to owning your own business but with back up and support from the franchisor.

An additional benefit of franchising is that you will be able to research and establish the business finances and profitability of existing franchisees and see how long they have been successful and being able to speak to other franchisees for information on actually running the business.

One of the most important benefits of franchising is that the business starts up costs and potential revenue will already be calculated and unexpected extra costs of trial and error are avoided. You will be able to benefit from franchising by determining the value and appeal of the business and the sustainability of the chosen type of franchise. Your licence fees are up front and then management fees and or percentages of royalties or sales etc are known up front.

The franchisor will have predetermined the size of territory that is required for a sustainable customer base, will have calculated the financial requirements in terms of start up and operating costs, and established a structure for licence fess and royalties as applicable, enabling you to benefit from franchising the same business model. Once you have decided on the franchise for you, all you have to do is launch, work hard following procedures and standards, and you are the owner of a successful business.