The Benefits of Being a Franchiser
- Brand recognition is one of the greatest benefits of owning a franchise. Franchises are typically well-known companies whose customer base is already established. As a franchise owner, customers already know your company's reputation and values. You don't have to build a reputation from scratch, prove that your products or services are reliable or convince new customers that your business is worth supporting. You just need to run a strong business and offer great customer service to keep clients coming back.
- Companies that are large enough to franchise have large, nationwide and regional marketing and advertising campaigns already in place. These campaigns are usually high quality and created by marketing experts. As a franchise owner, not only do you avoid spending money or time creating marketing materials, but you benefit from existing high profile marketing campaigns and product promotions.
- Corporate support for franchise owners doesn't stop at marketing. Most major corporations offer training for both management and employees. For example, McDonald's offers one week training sessions at their corporate headquarters and 12 to 24 month training sessions at your restaurant. Some offer loans to help new franchise owners pay for their startup expenses. Others have a built-in network of suppliers that they work with, so you don't have to spend time seeking the best prices on key supplies. Finally, most large franchises offer advice and expertise in the form of advice hotlines or printed books and materials to help your franchise succeed. They base their advice on years of franchise successes and failures. For example, 7-Eleven offers newsletters, frequent meetings, a toll free phone line and regular evaluations of your specific franchise that can help you find areas for improvements.
- While there are many benefits to owning a franchise, before you invest in one it's important to be sure that this type of business is right for you. According to Entrepreneur writer Jeff Elgin, true entrepreneurs who thrive on starting a business from scratch are often dissatisfied with the rules and regulations franchises require like the use of ready-made marketing materials, uniforms, policies and packaging. Franchises are also often more expensive to start than independent businesses. According to Randall S. Hansen, PhD and founder of Quintessential Careers, the average starting investment for a franchise is $250,000, not including real estate. Check out the price tags for franchises at different companies to find those that fit within your budget.