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Franchise Versus Independent
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Article 4: Pros Of Franchises
If franchising suits you, its benefits can be many. They vary from franchisor to franchisor, but generally include some, if not all, of these pluses:
The franchisee gets a turn-key system known to work. There’s no need to reinvent the wheel, saving money and time. Franchisors provide an operating manual detailing step-by-step procedures. Many franchisors restrict competition geographically for their franchisees so you don’t compete with the same brand and product. Advertising costs are pooled, giving a small franchise proportionately more exposure than it might be able to afford on its own. The market image of the product or service is already established in a wide area, lending credibility and awareness among buyers for what you sell. Many supplies and equipment purchases are available through the franchisor, so you don’t need to find and negotiate with multiple vendors. Uniformity in products and processes in the public’s eye establish a firm brand identity. Franchisors often encourage expansion for franchisees to operate more than one outlet. Less hands-on experience is required since you will operate a system developed by others. Some – but by no means all – franchisors encourage suggestions for improving the system by franchisees, and may even provide financial incentives. Franchisors provide training as part of your franchise fee. You can draw on the expertise of professionals that you otherwise might not be able to afford, such as the franchisor’s legal staff and marketing department. If the franchisor’s brand is well known and respected (which is not always the case), you will benefit from the exposure and reputation. If your franchisor’s other franchisees provide good service and good value, you will benefit by association when their customers relocate to your area.
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