Advantages to starting a franchise business

Why Buying A Franchise Makes Good Sense

Franchise Advice - Advantages of Buying a New York Franchise

When you buy a Franchise, you're buying a "business in a box" concept. You will be an independent business owner with no worries about branding, product/service development, distribution, training, marketing, on-going support, or equipment, if needed. Everything is provided by the Franchisor who has a vested interest in your success. In most cases, you don't even require any previous experience in your chosen industry. For these reasons, it's no wonder that approximately 92% of all franchises still exist 5 years later.

As a Franchisee, you will no longer be trading time for money and feeling unappreciated and underpaid for your efforts. You will have the opportunity to get out of your business exactly what you put into it while providing the lifestyle you wish for yourself and your family.

The other ways to become a business owner range from starting up a business yourself to buying an existing business. Starting a business by yourself can be a very risky and daunting task. You will have no public recognition for your business. You will have to develop appealing products/services that will be in demand now and in the future, develop a distribution system, train yourself and possibly others, devise your own marketing plan and advertising, have no on-going support and, if necessary, purchase your own equipment. For these reasons, it's no wonder that approximately 80% of all start-up businesses fail in the first 2 years.

Buying an existing business can also be a very risky proposition. They usually cost more as you are not only buying its physical properties and systems but you are also paying for the existing clientele. One of the biggest challenges is trying to find out the REAL reason the present owner is selling his/her business. Financial records rarely tell the entire story and it's what you don't know that can financially ruin you.

As a result of the lower risk factor, buying a franchise has become the most popular way to start a business today.

 

Franchise Advantages and Disadvantages Snapshot:

 

Advantages Disadvantages
Typically easier to finance than independent start-ups Dependence on Franchisor
Access to quality training and on-going support Start up costs may be slightly higher
Established concept with reduced risk of failure Less control over business
Systematic "cookie cutter" business approach Payment of franchise fee to cover initial training, start-up support and miscellaneous items
Access to lower cost and possibly centralized buying On-going royalty payments in exchange for on-going support, advertising, new product and/or service research and development
Fewer start-up problems Required standards, uniformity and control regarding suppliers
Use of well-known trademark or trade name (branding) Monitoring and auditing of your business
Access to cost effective group Advertising Term of agreement, possible renewal fees, restrictions on sale of business
Typically, franchises appreciate in value quicker than independent businesses Territory restrictions sometimes can limit geographical growth
Typically provides business site selection and better real estate negotiating power None
Able to grow into multiple locations faster than independent start-ups None

Contact us to see how we can help you with your business.