A Franchise is a way to run your own business using someone else’s brand and system. Instead of having to invent everything yourself (e.g. systems, processes, marketing, logo’s) you have the ability to become part of an existing business. That company, known as the Franchisor lets you use their name, products and way of doing things. In return, you pay them fees and agree to follow their rules.
When you first become a Franchisee, the Franchisor will provide you with all the tools required to start the business. This typically includes manuals, assistance with locating and fitting out your premises, training for you and any staff. Being able to have all this support when it is a stressful time is a huge advantage.
Ongoing support is one of the biggest advantages of becoming a franchisee. It means you are never left on your own after opening a business. Franchisors are continuing to improve the brand and business, which you get to reap the benefits of as a Franchisee. They do not want to see the business suffer, so are there to provide you with assistance and support.
A perk often seen in Franchises is the centralised marketing strategy. The Franchisor typically assists with national and regional advertising campaigns, social media guidance and templates. Having assistance in this area which is critical for a successful business is a huge weight of your shoulder.
Having a brand people know and trust is a benefit of becoming a Franchisee. If you were to start an independent business, you have to build your reputation from scratch which takes time, effort and money. With a franchise, the brand may have an established image which customers recognise from day one.
Starting a new business can be risky as you are testing an idea that may or may not work. With a Franchise, the uncertainty is reduced as the business has been tried and tested in other locations. Customers recognise the brand, so attracting customers is easier.
Becoming a Franchisee is a great way to become a business owner but have ongoing guidance from a Franchisor. If you need assistance understanding how franchises work, Storm McKenna and our wider Franchise team can assist you.