Advantages of Owning a Franchised Business

Consumers believe when they shop at a brand name store they are getting quality. Branding makes it easier to compete with the well-established, independent operators and also against other franchised chains.

By following the franchise system, the franchisee's chances of success increase. Many thousands of dollars can be saved by the trial and error and experience of the franchisor. The system is usually predictable. Follow it and you should achieve similar results of other franchisees.

Although the cost of entrance into a franchise system includes a franchise fee, the franchisee will benefit from training, operations manuals, site selection, lease negotiation, store design, construction savings, reduced cost of equipment and other advantages in buying power. 

The franchisor will often save the franchisee many thousands of dollars by suggesting the most effective initial marketing plans and allowing them to use the technology developed to improve operating systems. Franchisees will have the franchisor as a successful, experienced partner of whom they can ask questions. The other franchisees are also helpful in supporting.

The franchisee will benefit from the system as they pay an ongoing royalty which will allow the franchisee to benefit from periodic training programs in the regional office, home office or at the franchisee's location. Through the franchisor's buying system, the franchisee will usually pay much less than their unaffiliated competitors do.

Franchisees benefit from the purchasing power that comes from joining with others. They benefit from professionally designed point-of-sale marketing material, advertising, grand opening programs and other marketing materials that unaffiliated businesses can never afford. 

Franchise systems are on the forefront of research and development. They have access to the latest techniques, strategies, test markets, new products and operating systems.

Each franchisee's spending power is combined with the spending power of all the other franchisees in the local market and the rest of the system. This combined spending power, on advertising for example, often enables franchises not only to dominate local markets and established unaffiliated businesses but to also compete effectively against large, established chains.

One of the main disadvantages of a franchise is a partial loss of independence. If a franchisee can't live with the franchise agreement, another business should be considered.

One of the main advantages of owning a Franchise is that it allows you to "partner up" with a Franchisor who will provide you with a system that is designed to help you manage the business with lower risk than you might have on your own.


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