There are many reasons why someone begins to consider business ownership. But then the question looms of starting something of your own or invest into franchising. Understanding these reasons are important to discuss so that we can effectively match you with appropriate concepts that match your goals. While this writing could dive into many other topics that we cover in other blogs, here we are going to focus on some general high level reasons why franchising is an option to consider.

1. Proven Business Model 

In order for the business / franchise to survive and ideally grow they will have built a system of proven process & procedures, tested markets, know their demographics for a strong customer base, understand expenses and what brings in revenue.  Operational costs have been studied, scrutinized and adjusted for best results. Understanding what works and what does not work.  Another reason why many franchise businesses are successful compared to non-franchised systems.  Knowing the foundational aspects are set allows you as the owner to focus on items that need your attention to grow the business instead of still working on early stage task lists.  Almost akin to having a head start.

2. Easier to get Funding

For all the above mentioned reasons financing firms like franchising.  There is a blueprint for results, data and history that banks look for when making their decisions, as there is less risk for them to approve the loan.  

3. Support Systems 

 “In business for yourself but not by yourself”

Personally I have tried both routes and not surprisingly each have their pros and cons. There is a great feeling to the idea of ‘this is all my own’. Until you wish you had some direction, support and general guidance and sometimes very specific guidance.  Sure you can take the time to search that out and find people you trust to give advice. But having this in a franchise system, with people who are invested in seeing you succeed is a game changer. Fellow franchises who share best practices can really make a difference. A family of corporate team members to provide the support the business needs from ongoing support to initial start up support.  Here are a few examples:

• Real Estate
• Marketing
• IT (call center; software; proprietary systems)
• Operations Manuals
• National relationships or contracts w/other businesses, mass purchasing to leverage cost savings

4. Training

With a proven business model in place all the needed positions, roles and responsibilities are clear so the business can function successfully. Getting these positions filled and properly trained is a large piece that the franchisor will provide, not only in the beginning – initial training, but ongoing training as well.  

5. Scaling

With strong operations in place and a corporate structured training program franchisees can scale their business quicker by opening more units in an area. I tend to equate to the ‘baby’ analogy.  The first child creates an environment of everything being new, but you buy the crib, the stroller and darn near everything else. By the time you have the second child, not only do you know what you’re doing but you already have so many processes and procedures (and paraphernalia) in play that adding additional locations becomes easier. You don’t need to invest as much to make the same amount – economies of scale.

"Strong franchise support, training, and simplified operations allow franchisees 
to scale up and stay dialed in on costs, company culture, and--most of all--cash 
for sustainable growth." (Built To Scale: How 5 Top Operators Do It)

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