Franchising is based on proven systems as the franchisor has already overcome the challenges that come with growing a business, thereby developing a blueprint for success that franchisees can follow.
Investing in a franchise is one of the safest ways of owning a business and becoming your own boss. It also remains almost the only business mechanism that enables small businesses to compete effectively against larger businesses. Here, Seth Brown, UK Franchise Recruitment Manager, lists 20 advantages of being a franchise owner:
1. You are on your own, but not alone
Franchisees enjoy the benefit of being their own boss as well as the advantage of receiving support from the franchisor and the franchise network.
2. Less risks
The business risks faced by franchisees are reduced considerably, but always remember there are risks in any enterprise.
3. Faster launch
Franchisees enjoy a shorter learning curve, as they will receive assistance from the franchisor, which has experience of starting new operations and locations.
4. Easier access to funds
As franchises have a 93% success rate*, banks are more willing to provide funds.
5. Help identifying the perfect location
Franchisors will have already done their own research to identify territories and potential locations for their business opportunities. Most offer an exclusive, defined trading area in which the franchisee is the brand’s sole operator.
6. A ready-made professional image
Brand recognition is one of the keys to a successful business and with a franchise, this will already be in place.
7. Learn faster and more effectively
A franchisor’s training programme will offer its franchisees a comprehensive background in business before they launch their business.
8. A proven business plan
Franchisees replicate a business plan that has already been operating successfully for others.
9. Avoid costly mistakes
Whatever challenges a franchisee will face, the franchisor will already have faced them and will have the solutions.
10. Peer recognition
Many franchisors hold conventions and awards, where hard work is acknowledged and franchisees can forge business relationships and friendships.
11. Easier to secure new business
By operating under an established brand, franchisees will find it easier to get new contracts than if they had started a new business from scratch.
12. National and regional marketing
Most franchisors use a percentage of the management service fee (MSF) or have a separate fund used to promote their brand using national and regional advertising.
13. Lower inventory prices
The collective buying power of a franchise group can lower the cost of software, inventory and equipment, saving franchisees a lot of money.
14. Research and development
Each time a new innovation is made, franchisees will directly benefit and incorporate these improvements into their own constantly evolving business.
15. Most franchises start new trends
Franchises are usually based on an original concept and inspire other businesses to follow their lead. Franchisees reap the advantages of this success.
16. Easier staff recruiting
A franchise business with a recognised name will have greater recruiting power than an unknown business.
17. Choice of working hours
As they are their own boss, franchisees can choose what hours they want to work. This means they can arrange their day to fit in with family or other commitments.
18. A higher success rate
Not only are 93% of franchise owners claiming profitability, but they frequently also enjoy greater turnover and profit compared to non-franchised businesses.
19. A higher re-sale value
By being part of a nationally recognised brand, a franchisee’s business will usually be worth more than an independently owned company.
20. Job satisfaction
The majority of franchisees invest in a franchise which they are interested in and feel passionate about. It may be hard work running a business, but when it’s for a brand that they believe in, it makes the effort worthwhile.
*2018 bfa/NatWest Franchise Survey
About the author
Seth Brown, Senior Manager, UK Recruitment, joined the TaxAssist Direct Group in 2019 to work as part of the team responsible for franchisee recruitment in the UK.
Before joining TaxAssist, Seth had a 34 year banking career with HSBC UK Bank plc and has undertaken a wide range of general management, leadership and risk management control roles incorporating both Retail and Commercial Banking.
Seth is able to use his extensive career experience to work closely with prospective franchisees that are considering joining the network to discuss all aspects of the TaxAssist franchise proposition and Business Plan completion.
