Franchising

While some entrepreneurs might decide to start their own business there are others who are looking for an already established business model that they can use and hopefully profit from. This is the world of franchising and many people see franchising as a shortcut to success. This is somewhat true as the success rate of franchises is higher than that of someone starting their own business. As with most things in life there are certain advantages and disadvantages, in this article I will discuss some of the advantages of franchising.

Advantages of Buying a Franchise

• Buying Power - Franchise companies have buying power and this can be seen as a direct advantage and this will also give you an advantage over your competitors and other businesses that do not have this buying power. The reason why franchises have buying power is because they will purchase their raw materials from certain suppliers and these suppliers will offer the franchise companies an exclusive discount, and due to the fact that they will buy large quantities of the products. All franchise owners will benefit because it will mean that you will save money, which in the long run equals more profit.

• Lower Failure Rate - Franchises have a lower failure rate than when compared to other business that are started. The reason for this is because when you buy a franchise you are actually buying into an established and already successful concept. Business success statistics show that franchisees (person who opens a franchise) stand a much better chance compared to people who start independent businesses. The shocking statistics show that independent businesses stand a 70 to 80 percent chance of failing to surviving the first few critical years. On the other hand franchisees have an 80 percent chance of surviving and being able to survive.

• Brand Recognition and Advertising - Most franchises especially in the fast food industry and well known and most well-known franchises have national brand recognition. The franchise companies also spend huge sums of money on advertising campaigns and these advertising campaigns are ultimately advertising your franchise as well. This is where it is shown that once again buying a franchise can be like buying a business with an already established and loyal customer base.

• Training, Support and Help with the start up and running of the franchise - You as the franchisee will receive management training and continuous support from the franchise that you decide to invest in. You will essentially get just about everything you need including all the equipment, employees, suppliers and instruction or training needed to start the business. This is one of the reasons why franchises have such a high success rate, it's due to the support and on going help from the franchise companies. You and your franchise will benefit and succeed due to the help and support that the franchise companies provide.

I hope this helps you in making a decision if franchising is the right option for you. The advantages of a franchise are amazing and this is why many people decide to invest and open a franchise. The power of being able to invest and have your slice of a successful and already established business model is very tempting, the power of franchising is amazing.