Why become a franchisee
If you are thinking of starting your own business, then franchising is a great way to become your own boss. We have listed below the benefits of becoming a franchisee.
Reduced risk – like any business venture, risks does exist, but because in franchising you are buying into a tried and tested business format, someone else has made the mistakes for you(!), then the risks will be less. This only applies though if you are looking at an ethical franchise i.e. one that has ran a pilot franchise to iron out any errors and is a franchise that is more interested in building the franchise business as a whole than selling franchises to make money! Use the information on whichfranchise to help identify a good franchise from a bad franchise.
Established track record – ethical franchises will have a successful track record of running as a business before becoming a franchise operation. These franchises will be established in their market and sustainable to change. They have not just thought of an idea that could work and set the business up as a franchise with no idea if it makes a good business never mind a franchise! As stupid as it sounds, this does happen. You may come across “franchises” that when you delve into their track record further, you will discover that the business and franchise were set up at the same time! Remember only successful businesses can be franchised. If they cannot prove that they have been successful as a business then you should walk away.
Brand awareness – imagine you want to open a pizza business, do you think you will have a better chance of success as Joe Bloggs Pizza or Domino’s Pizza?! Franchising allows you to buy into an established business with existing brand awareness. This gives you the opportunity to start trading from day one. And the awareness only increases as the franchise develops because every time another franchisee joins the network, they are increasing awareness in their local area.
No experience necessary – because a good franchisor will train you in all aspects of becoming one of their franchisees, you do not need experience in their industry. This means that you can try your hand out at almost anything when looking to buy a franchise.
Complete training and support – a good franchisor will train you in all aspects of their franchise business initially and on an ongoing basis. You will also receive full support from them throughout the lifecycle of your franchise, with most good franchisors only being a phone call away. They should also run annual conferences and events for all franchisees to get together to share ideas and good practice advice. This support is the most useful when you launch your franchise as the franchisor knows this is when you will need the most support. If you had started your business by yourself, who would you turn to for advice or help?
Other franchisees – there is a saying in franchising that “you are in business for yourself but not by yourself”. Not only does this relate to the support you receive from your franchisor but also the support you receive from fellow franchisees. As a franchisee you are able to pick up the phone to talk to another franchisee whether it is asking for advice or sharing ideas. Franchisors encourage this interaction amongst franchisees. This is especially useful when you first open your franchise for business as who else is more equipped to know what you are going through.
Group marketing – if you were running your own business with no help from anyone else you would need to spend a lot of money on marketing to promote it and get your name out there. And it would be very unlikely that you could afford to advertise on TV. In a franchise you usually pay money into a group marketing fund each month. This money goes towards promoting the brand throughout Ireland, and as it is a group fund you could maybe afford to advertise on TV as well as being able to run more professional campaigns that you could not do if a sole trader. You also have better buying power as a franchisee. As you could be spending a lot of money on marketing each month you can negotiate better rates with suppliers.
Good location – landlords or sellers are happier to deal with businesses that have a good track record and reputation such as a franchisee. This allows you to have a better chance of getting a prime location and negotiate a better rate. Franchisors will also use their resources to help you find the right location for your business, something you would not be able to take advantage of if a sole trader.