Buying A Franchise: Is It For You?
Choosing to purchase a franchise is a respectable option for someone looking to start their journey of owning a business. There are some huge benefits to buying a franchise. In the UK alone only around 40% of new businesses survive for longer than 3 years. Whereas, in 2018 over 90% of people that purchased a franchise claimed profitability. So why should you choose to buy a franchise instead of starting your own business?
Buying An Established Brand
The best reason to justify buying a franchise is that you’re adopting an already developed brand, product, and methodology. For example, if you were buying a restaurant franchise, you’re taking on that larger companies tried and trusted practices and products, meaning you won’t need to do much research when establishing your new restaurant. You’ll already know what works and what doesn’t and be able to get started right out of the gate. Your branding and signage will instantly be recognisable, and it shouldn’t be too long before you start to see some profits coming in.
You Can Make A Lot Of Money
Now, this isn’t a get-rich-quick method, and it’s no guarantee. No matter what, you’re going to need to put in the work, similarly to if you were getting a business off the ground. But the good thing is, most of your effort will be going into running the business as opposed to making it viable in the first place like you’d need to with a brand-new company.
You also must remember that, whilst you can make a lot of money, it’s going to cost you in the short term. Some of the largest franchises such as McDonald’s and Burger King can cost well into the millions for you to become a franchisee. Securing funding for such a large undertaking can be difficult. But there are plenty of other, more affordable options in most other price ranges.
When looking for a franchise for sale, use trusted franchise directories like Franchise Local to find the right choice for you. Don’t forget to put effort into researching what type of franchise you want to take on and where. There’s not much point in opening a doughnut store next to multiple competitors unless you know that the franchise you’re buying can outsell the others.
Another great reason to become a franchisee is the often-reduced costs of purchasing equipment, and assistance you can get from the franchisor. They’ll most likely have deals with suppliers and sometimes even help you to get set up as part of the package, but this is obviously all situational to who you’re working with and isn’t a guarantee.
The extra sense of security by being involved with a large, successful brand can offset a lot of the stresses of business ownership. You won’t have to deal with marketing strategies, operation changes or anything like that, because your head office will send you updated guidance on all of these decisions. Of course, it can feel a bit overwhelming and like you’re losing a lot of say in the running of your business, but it can be a worthwhile sacrifice to know that some of the toughest decisions are being handled by experts.