We know that franchising is a great way of getting into business for yourself but to help you to see the benefits of becoming a franchisee, we have outlined below the main advantages.
Less risk – franchising suits those who want to be their own boss but are reluctant to start their own business from scratch due to the risks involved. Because franchising is a tried and tested business, the systems are proven and any problems sorted out during the pilot franchise stage, the risk in franchising is a lot less than doing it on your own.
Track record – all good franchise companies have an established track record as a business before going down the franchise route. Be wary of any “franchises” who have limited experience as a business and run if someone tells you that franchise and business were established at the same time; bear in mind that you can only franchise a successful business. When buying into an ethical franchise you can be ensured that the business and the franchisor has a good track record.
Strong brand awareness – an established franchise will have great brand awareness in their state or throughout Australia due to the reach of the network. Every time a franchise opens in another city or town, or in another state, they are spreading awareness of the franchise brand in that area. You could therefore be joining a business that already is known in your area. This would allow you to immediately compete in your market. If you opened a business by scratch yourself, no one would know of you, and so it would be hard for you to create a name for yourself, or take any share of the market as a one man (or woman!) operation.
Comprehensive training and support – good franchisors will train you in all aspects of their business. This means you do not need to have certain skills or experience in a particular industry to buy into most franchises as you will be trained in how to run the business. The franchisor will also support you through the lifecycle of your business; they will have a support team in place to help you with any issues you are having. You are therefore never alone in franchising and whilst it is your own business, you are able to call on the experience of others when needed.
Marketing support – you will benefit from a group national or state wide marketing fund, giving you greater marketing power than you would have if running your own marketing campaigns as a sole trader. Your marketing expenses will also be less as you as sharing the cost with other franchisees in your area. Having a centralised marketing fund also means that the company can afford to create professional promotional campaigns, and undertake TV advertising, something you may not be able to afford to do if running your own business.
Site selection assistance – as we all know it is all about location, location, location! Finding the right location can be the key to your franchise success. Good franchisors will assist you in finding the right location and in negotiating to get the best price with the landlords or sellers. You should still do your own research to make sure that you are happy with the area but you can use the services of the franchisor to help put together a demographic profile etc.
Launch assistance – the franchisor will assist you in all aspects of your launch. The franchisor and their support staff will be there in the run up to the opening of your franchise to provide you with all the support you need –site selection, shop fit out, helping you to hire and recruit staff, training, marketing/promotional campaign for the launch of the franchise etc. They will also be available after the launch to help with any queries or problems you have.
Network support – as well as being supported by your franchisor, you are also able to turn to your fellow franchisees if you have a problem or query. Being able to speak to other franchisees is a major benefit of being part of a franchise.
Group purchasing benefits – all franchisees will benefit from the buying power of the group. Franchisors buying supplies for the whole of their network will be able to negotiate better rates, passing the savings on to their franchisees. This in turn allows you to keep your costs down which will help you compete in your market by offering a more cost-effective service or product than some of your competitors, in particular sole traders.