So you think you want to buy a franchise but you’re not so sure it would be the right choice. After all, why should you spend a premium on a big name when you can just duplicate their efforts? Think again. There are a few good reasons why copycatting doesn‘t work, and in hard economic times, these reasons make even more sense. We can’t say enough about the security factor of choosing to invest in a franchise as opposed to a new start up. Below are 5 advantages of franchising.
1. BrandingThe first thing Franchises offer franchisees is a strategic identity that is not only effective, it has cumulative market impact. Corporate Brand Identities are proven. Mega-brands like McDonald’s and Dunkin’ Donuts have literally spent millions on their brandings and logos and the franchisee gets to take full advantage. Most Franchisors have already survived decades in their respective industries and are easily identifiable to the public. A successful brand is one that is remembered, and Franchises have some of the most successful brand identities in the world.
2. AdvertisingAdvertising can be one of the biggest expenses for any new business and for good reason. You can’t survive without effective advertising and effective advertising is expensive. These days, even if you have a prime location, if customers are unfamiliar with what you have to offer they won’t come in. Franchises offer national advertising campaigns that are included in your franchise fee. This is a huge benefit when considering a franchise.
3. Name RecognitionPeople today want guarantees like never before and name/menu/brand recognition gives them that assurance. Everyone knows what to expect when they stop at your franchise because the majority of them are repeat customers even if it’s the first time in your store. You get to take advantage of the fact that a family from out-of-state, for instance, who has previously enjoyed your franchise’s products and services, will think nothing of visiting your facility because of their past positive experiences. In fact, like an old friend, they are counting on you to be there.
4. ReputationNext to Advertising and Branding, a Franchisee enjoys the protected reputation of the Franchisor. I say protected because there are designated legal departments that take care of the inevitable issues like lawsuits, accidents, and difficulties with employees. The reputation of the franchise is important enough, it is what breeds positive expectations that keep patrons loyal, but this benefit coupled with a built-in umbrella of legal protection is an incredible bonus and one you cannot get as an independent.
5. SupportUnless you were raised in the specific business you are trying to start, you will need special training. Franchise Head Quarters will train you in everything from the technology involved, to the accounting, to standing behind the counter and taking money. Ongoing and online support is always available as well as special alerts and continuing education. Franchisors want you to be successful and they make themselves available every step of the way. After all, they want to keep selling franchises and high success ratios keep potential franchisees coming.