With Halloween just around the corner, ’tis the season for tricks and treats!
The same can be said when considering buying a franchise business.
Franchising can be an excellent way to get your business off the ground quickly with an established brand and support system.
However, there are some important things to keep in mind so you don’t get “tricked” into making a decision that isn’t right for you.
Here are some of the key “tricks” and “treats” of franchising to consider:
The Treats
Established Brand and Products/Services
One of the biggest advantages of buying a franchise is that you get quick access to an established brand, reputation and products or services.
You don’t have to spend time building name recognition or developing offerings from scratch.
Proven Business Model
An established franchise comes with a business model that has already been developed and optimized.
Franchisors provide extensive training and guidance to replicate the success of other franchise locations.
Ongoing Support
Most franchisors provide their franchisees with training to get started as well as ongoing support in areas such as operations, marketing, purchasing, and more.
You gain access to a team of experienced professionals.
Purchasing Power
Being part of a larger network provides increased purchasing power for equipment, inventory and other costs.
Franchisees might get discounted pricing that independent businesses may not be able to access.
Networking
There are opportunities to network with fellow franchisees to share ideas, best practices, and build connections.
You’re part of a built-in peer group that shares common experiences.
The Tricks
Potential High Initial Investment
The start-up investment for a franchise can be substantial.
The total investment will vary by industry and brand but typically ranges from tens of thousands to hundreds of thousands of dollars.
Possible Ongoing Fees
In addition to the initial investment, franchisees pay ongoing royalty and marketing fees.
These fees are usually a percentage of sales so costs may go up as your revenues increase.
Less Independence
For those seeking an independent path, owning a franchise means following an established system rather than having the freedom to operate exactly as you choose.
Franchisees need to adhere to the franchisor’s operating system and guidelines.
Finding the Right Fit
With so many franchise concepts to choose from, it can be challenging to identify and vet the right opportunity.
Make sure to do your homework and choose a brand that aligns with your skills, interests and financial capabilities.
TIP: Connect with Franchise Matchmakers to help find the perfect opportunities for you!
No Guarantees
While franchises have higher success rates than independent startups, revenues and profitability are not guaranteed.
Factors like the local market, your management, and competition will impact performance.
Buying a Franchise
Buying a franchise can provide a faster pathway to business ownership paired with an ongoing support network.
However, it requires thorough research to find the right fit and understanding the obligations of being part of a larger brand system.
Weigh the unique “tricks and “treats” of franchising as you consider taking the franchise plunge this Halloween season!
Franchise Matchmakers is a team of franchising professionals dedicated to helping people explore business ownership as a career path.
Contact them at info@franchisematchmakers.com to find out more about franchising options that are perfect for you.
