Franchises offer the first-time business owner a proven and successful business opportunity. If you are looking to start your own business for the first time, franchises provide you with the greatest opportunity for success. When you purchase a franchise from the “Franchisor” and become a “Franchisee”, you are not only purchasing a business but a complete business system.
Franchises have over a 90% success rate, compared to about a 15% success rate for those individuals starting their own businesses from scratch. Franchises have spent years developing and modifying their systems of doing business, and they pass that “trial and error” knowledge on to their Franchisees. Initial training exists for every aspect of the business, which can last anywhere from 1 to 2 weeks. Training usually takes place at one of the franchises existing locations or their corporate office. Training may consist of the day-to-day “hands-on” positions required to run the business, to marketing, hiring, purchasing, bookkeeping, management, and supervisory techniques.
Assistance is available with “demographic” reports to aid in selecting the right location. Support is also available for lease negotiation and “build-outs”, if necessary. Pre-opening strategies and marketing materials for newspapers, print-ads, handouts, yellow page advertising, radio, and even TV ads are complete and professional.
During the first few weeks of business, the Franchisor may provide its own personnel to the Franchisee for assistance and support. This helps ensure a smooth opening. Additionally, once the business is open, a Franchisee will receive ongoing assistance and support from the Franchisor, not to mention support from the other franchisees, all of who are just a phone call away.
Once a year or more Franchise Meetings occur between the Franchisor and their Franchisees to exchange ideas, develop new techniques and strategies, and compare progress and profits.
All of this is not free, of course. Franchisees normally pay the Franchisor an initial Franchise Fee, plus monthly royalties which can range from 3% – 12% of their total income per month. But it can be well worth it!
In owning a Franchise, you are in business for yourself, but you are not by yourself!