Why You Should Buy A Franchise Instead Of Opening Your Own Business
Why buy a franchise? Because becoming successful in business needs a guiding hand. A quality franchisor does this by:
- Leveraging brand awareness
- Providing a marketing and advertising strategy
- Offering training programmes and ongoing support
- Helping draft business plans
- Providing a cost-effective inventory
Statistically, franchises tend to have better success rates than non-franchised businesses. 93% of franchisees claimed profitability in 2018, whereas only 40% of new businesses survive more than three years in the UK.
But if someone were to ask a franchisee “why buy a franchise?”, the answer probably wouldn’t be based on the increased chance of success. Instead, it’s more likely to be the sheer amount of support you receive from the franchisor.
Franchisees may bring their unique means of working, but they’re being supported to deliver on an already refined solution. The best franchises provide every resource possible to ensure you’re delivering that solution to standards which help you gain a foothold in a new territory.
So, if you’re still asking yourself “should I buy a franchise?” let us answer for you. Below, you’ll find our complete breakdown of all the benefits of franchising, and how a supportive franchisor can help you enjoy them.
Established brand image
One primary reason to buy a franchise has to be the level of brand awareness they already have. Customers know you, are aware of your products or services, and already have a desire to buy from you. Picture the difference between opening a new restaurant and purchasing a McDonald’s franchise, for example.
Such a sheer reduction of risk is enough to convince would-be independent small business owners to open a franchise instead. However, that isn’t the only benefit to an established brand image.
Leveraging the franchisor’s name helps you get your foot in the door during the sales process. Some territories are home to local businesses that communities wouldn’t think to stray from. While your franchisor may be known on a national level, you may be relatively unknown locally.
You might be seen as a faceless contender, making it necessary to explain how your relationship with the franchisor benefits the client – be it cost, quality or flexibility. The potential customer then only needs to do a little research to see that you’re a part of a larger, reputable company.
Proven marketing and advertising strategy
To help vocalise the benefits that you present to the customer, any quality franchisor will provide you with the tools to communicate your message. Franchise owners will have access to a history of what works and what doesn’t, as well as best practice guides on everything from social media to local newspaper advertising.
From the moment you make your initial investment, your onboarding team should help cultivate a public persona that resonates with the audiences you’ll be targeting. They’ll be able to demonstrate what other franchisees have done and allow you to choose a method most suitable for you.
With ongoing support, your franchise business will not only align with HQ but also have a distinctive voice that leads to web traffic, incoming calls and regular referrals.
Bespoke training programmes
Of course, this all relies on you being efficient enough in your role to live up to the standards outlined by your franchisor. You need the skills to deliver on their promise. It’s for this reason that franchisors will only take on a franchisee who demonstrates a commercially savvy mindset which they can nurture.
You may have chosen this business model as it involves skills you already have in your arsenal. If you haven’t, and instead chose it so that you could escape the rat race and learn something new, you’ll need rigorous training and support. Franchisors offer that from the day you sign up.
Those who start their own business, on the other hand, will have little awareness of their abilities in management until they’ve made a number of big wins and small defeats. Lessons learned are important to commercial success; franchises are built with them in mind.
Business plan and goal support
Franchises will help gear your business plan towards success before you’ve even secured your buy-in. At the stage when you decide that you want to join, a good franchisor will suggest banks which offer more favourable loans to franchisees.
In preparation for your interview with the bank, you’ll be expected to create a business plan, equipped with financial projections, and a SWOT and competitor analysis. This forms the foundation of your relationship with a franchisor and gives details on the territory you’re hoping to transform.
Once a buy-in has been secured, these goals can be fleshed out to include more specific milestones. Franchisors may have some they wish to impose on you, but if not, feel free to contact other franchisees and ask about the route of their progression so you can form a map yourself.
Higher chances of success
Opening a franchise is a good idea because of its higher average likelihood of profitability. While we as franchisors would hope that candidates don’t solely join for that reason, we appreciate that for entrepreneurs it’s a protected route to success.
Ambition is important, though, and franchisees lacking it could still find their business venture sinks. Not challenging the status quo of your new territory or refusing to use the tried-and-tested methods of your franchisor could genuinely result in a fall in sales and an increase in costs.
Most franchisors will be able to ascertain whether or not that’s your intention in the discovery stages. However, should you clearly ignore advice and repeatedly conduct divergent marketing exercises, your chances of success may be dramatically reduced.
Cost-effective inventory and equipment
When building a business from scratch, the amount of stock you’ll need to purchase before operating can be staggering. But franchises often secure cheaper rates from suppliers, and can even provide some equipment as part of your investment.
In order to maintain the franchisor’s brand image, you need tools that deliver a quality service. That means having all the latest machinery or software.
At Rainbow, for instance, we point all our franchisees in the direction of specialist cleaning and restoration equipment that positions them as one of the most innovative workforces within the industry. In a startup, sourcing these tools falls to the business owner themselves.
Why franchise with Rainbow?
We deliver on all of the above and more. Not only do we explain how to become a franchisee, but how to become a successful one. We take care of our team and aim to set the precedent when it comes to the mutual success of franchisees and franchisor.
To begin working with a franchisor that’s dedicated to your development, get in touch today.