If you’ve spent a bit of time exploring the world of business, then you’ve heard of franchising. Its a popular approach to getting into business for yourself, with advantages for you as the owner, for the broader franchising organisation, and for your customers too! Here at DaltonsBusiness we’ve got a slate of articles to guide you on your franchise journey – but to get started, here’s the Top 10 reasons to invest in a franchise. Plus, we have lots of franchise opportunities, including cleaning, food and drink, gardening and landscaping, fitness, travel, education… in fact we have over 30 franchise categories.
1. You’ll own your own business, fast
As a franchise owner, you’ll be your own boss. There are numerous routes into self-employment, but franchising gives you a leg up on starting from scratch. You’ll have immediate access to supply chains. The franchise can provide you with key contacts, without having to find them yourself. Less time spent pounding the pavement means more time open for business.
2. You’ll always have a helping hand
Plenty of support and guidance is on hand when you need it – this is one of the biggest advantages when buying a franchise. And it’s why investing in a franchise is statistically the safest way to get into business for yourself. The franchisor has overcome most of the problems you’ll face in starting and running your new business. What’s more, a good franchisor will provide high levels of training and support to guide you while you establish and grow your franchised business.
3. You’re part of a broader team
Joining a franchised network means you’ll be part of something much bigger. Whether that’s in a newer outfit with just a few fellow franchisees, or an international megabrand like McDonalds, having peers to share your experiences with is invaluable. Lots of business owners suffer from isolation and will tell you it’s lonely at the top. Invest in a franchise, though, and you’ll always have others to lean on for support.
4. You’ll have immediate name recognition
Getting your name out there is a key objective for any business. Invest in a franchise, though, and the name will already be established. At any size, somebody has already spent time and money in developing that brand. As a new franchisee, you’ll benefit from those efforts that have gone before you. Of course, the level of exposure will depend on the size of the network, but you’re always going to have an easier time getting the word out.
5. You’ll have tested systems to rely on
Proven methods in advertising and marketing – as well as that all-important brand exposure – will set you on your way much faster when starting a franchise. But the benefits don’t end there. Unlike starting an independent business of your own, where you have to pioneer things yourself, when you invest in a franchise you’ll tap into an array of resources, systems and processes that fast-track your way to profitability and success.
6. You’ll have a built-in USP
Each franchise brand has a unique selling point. Something that sets them apart from other businesses. This gives you that benefit. Maybe its rights to a renowned product. Maybe it’s a service that others can’t provide. This USP gives you a competitive advantage within whatever industry you choose to operate. There is also a consumer advantage when buying from a franchisee, as customers benefit from dealing with a local business owner backed up by a national brand.
7. Your business will grow, and you with it
Done correctly, franchising is the ideal way to accelerate the growth in your business. While you, as the franchisee, focus on your individual business, the franchisor will be looking for new ways to grow and excel. They will be actively recruiting more franchisees, which leads to more brand exposure on a national scale. With that comes more resources to invest in the franchise. It is a cyclical effect – and economies of scale – that positively impacts your own business.
8. You’ll find safety and security
Select the right franchise opportunity, and you could see a return of your investment in your first year. That’s rare in most business purchases, and almost unheard of in a start-up. Even if it takes a few years to get your money back, investing in a franchise is a pretty secure bet. According to the most recent available data from the British Franchise Association (BFA) and NatWest, a mere 1% of franchises close down due to commercial failure each year.
9. You’ll find money on the table
There’s plenty of funding available for franchisees – As you can imagine, for a bank, lending money to a new franchisee is far less risky than lending to an independent start-up. And that means there are lots of funding options available to franchisees, and at good rates of interest too. Bear in mind, though, that a Franchise Agreement will run for a set period of time – whether that’s 5 or 10 years – and, as such, the bank loan can only run in parallel with that franchise term.
10. You’re getting ahead of the game
Investing in a franchise used to be the preserve of the more mature amongst us. And it still remains a fantastic option for those in their 50s, 60s – or even older – to prop-up their pension pots with a final flurry into self-employment. But, interestingly, the average age of a franchisee in the UK has dropped over the last few years and, again, according to the BFA and NatWest survey 18% of all franchisees are now under 30. Starting earlier gives you more time to grow as an entrepreneur, and perhaps this first franchise will be just the start!
These 10 reasons are just the start of how franchising can work for you. To find out more, check out our full suite of guides here on DaltonsBusiness.
