Franchising can be an attractive option for new entrepreneurs, as it offers some significant benefits over other approaches to starting your own business. Here are just five of the reasons why buying a franchise might be right for you.
Why are franchise businesses so popular?
There are many reasons why buying business opportunities that are recruiting is a popular option. For example, franchising allows you to buy into a proven system of operations and marketing methods that work in that specific industry. This allows you to get off on the right foot as a new entrepreneur. Also, franchises tend to provide ongoing support from their corporate headquarters after they sell you their franchise, which can be very helpful in terms of making sure your business is on track during its early stages. And because it’s part of a larger brand, buying a franchise gives you instant name recognition and credibility with potential customers.
1) Why Should I Buy a Franchise?
When you buy a franchise, you don’t just get rights to use its name. You also get business training and business know-how from someone who’s already done it. A good franchisor will teach you everything from how to run payroll to what kind of marketing strategies work best for their product or service. And that means less time spent researching and more time running your business.
2) Franchises have high success rates
There’s a good reason why franchising is such a popular business model in America. Franchises tend to outperform independent companies by 20%. That success, however, comes with an initial price tag. Typically, you’ll pay 50% of your start-up costs up front and then pay off additional funds as you go through one of two methods: (1) royalty fees or (2) a mix of ongoing fees and percentage points on sales. The most important thing to keep in mind is that franchising helps others succeed while opening doors for you to do what you do best—run your own business. It’s been proven many times over: buying into a franchise is one of the easiest ways to make money while doing what you love.
3) How Much Do Franchise Businesses Cost?
In general, franchises are usually cheaper than starting a company from scratch. The average fee to start a new franchise can range anywhere from £5,000 to £250,000 — with many reports listing it closer to £50,000 — while you might be able to start a comparable independent business for far less. On top of that, franchisors often require you to pay ongoing royalties and fees; in some cases, these payments make up a considerable portion of an independent business’s monthly expenses. That said, there are upsides and downsides to both approaches: buying into an existing system has its benefits but also brings some costs; opening your own independent business gives you full control but requires more startup capital. Of course, each franchise investment fee is different across multiple industries, for example if you were looking to buy a fitness franchise opportunity and wanted to start this for a low fee it might be better to find the best fitness franchises with a low investment fee.
4) What Support Can I Expect From My Franchisor?
The importance of knowing that your franchisor is there to help you succeed—and will do whatever it takes to make sure you succeed—can’t be overstated. In fact, franchisees are often considered an extended family by many franchisors, and franchisees know that their own reputation depends on ensuring that their franchisees succeed as well. It makes sense: if one of your locations does poorly, it reflects poorly on your brand. As a result, every franchisor in existence strives to offer excellent customer service and support to its franchisees; indeed, some companies go above and beyond with free business advice or training programs for all new store owners.
5) How Much Money Will I Make With A Franchise?
That’s a hard question to answer, as it varies widely from one franchise to another. But it’s certainly possible that you could make more with a franchise than you would going solo, particularly in your first few years in business. Profitable franchises typically do at least two things for you: First, they provide start-up capital for your business. In most cases, franchises will give you a loan or line of credit to help with opening costs and other expenses associated with getting started. Second, many franchisors will cover advertising costs (both during and after launch) that let customers know about your location and offerings.
Interested in buying a franchise?
Whether you’re a serial entrepreneur or a first-time business owner, there are several factors to consider before diving into franchising. When considering opening your own business, remember to look at all of your options – don’t just buy into what everyone else is doing and think that it will work for you as well. Take a little time to figure out whether franchising could work for you; it could save you thousands of pounds and months of unnecessary headaches in the long run. And once you know it’s right for you, do what’s necessary to make it happen! You won’t regret taking action! If you are interested in buying a franchise now browse Franchise UK.
Where to find franchises for sale?
Franchising is a great way to reduce risk in an entrepreneur’s new business. Before purchasing a franchise, you can check out franchises for sale in the UK at a directory like Franchise UK. It may take a little legwork to find what you’re looking for, but once you do, rest assured knowing that other entrepreneurs have already vetted your opportunity. Once you’ve narrowed down your options to one or two great prospects, it’s time to conduct due diligence and dig into some information about each of your finalist franchises.