Benefits of Franchising
The benefits of franchising are abundant. Position yourself with the right franchisor and you could be on your way to freedom. The only problem with franchising is that many people find it hard to come up with the liquid cash it takes to start a franchise. The median cash required to start up a franchise is around $100,000. This means many franchisors will not even speak to the prospective franchisee unless they have $100,000 or more capital available. Dont let available capital scare you though; there are many low-cost franchisors that will work with people with under $10,000 available capital. If you have good credit, then you can always look to banks for help in raising more capital.
Listed below are 9 great benefits of franchising:
1.Financing- Banks look at franchises as much more stable and secure investments as opposed to an independent start-up.
2.National brand recognition- Instead of Joes Sub Shop you can have a national brand name such as Quiznos or Subway
3.National Advertising – Part of your royalties is paid into an advertisement pool where the franchisor pays for TV, radio, print, Internet, and many other avenues of providing its franchisees with customers!
4.Proven training The franchisor has mastered their training model, and these benefits are passed on to you. By the time a company decides to become a franchise, they should have mastered their training techniques.
5.Technical Support- Whenever something goes wrong chances are the franchisor knows how to immediately fix it. Your store is essentially a complete duplicate of every other franchise owned units. Technical problems will be easy and less costly to fix.
6.Buying power- The franchisor receives tremendous savings due to its buying power of products. These savings are passed on to the franchisee, which results in more profits.
7.Flourishing business- The franchise is a franchise for a reason. Their business uses a proven model and has been in the profit zone for a while. This means your chances at succeeding are much higher than an independent start-up.
8.Self-employment- Who doesnt want to be their own boss? Work hard and your only boss will be yourself.
9.Recognition and Satisfaction Franchising is a great industry. If you can succeed, chances are you will open more units, which could result in you turning into a franchise guru. Do this and my friend you could be one rich individual.