How do you know if buying a franchise is right for you? There are many advantages to owning a franchise that you should be aware of before making your decision. Franchises can be great business opportunities, but they come with the same risks as any other type of business venture so you should carefully consider your options before jumping in headfirst. Here are three of the main reasons to buy franchise businesses.
Higher Success Rates
Most franchises have been tried and tested over time, which means most franchisors have perfected their business models to account for typical issues that arise. It is much easier for a franchise to succeed than it is for an independent business. Most franchises offer higher start-up costs, but these extra costs pay off in terms of future success and decreased risk. It’s hard to compare apples to apples when it comes to comparing how much money you can make with an independent business vs. a franchise, but if you assume that running an independent business will result in financial ruin half of the time, then purchasing and running a franchise could potentially net you more revenue long-term.
Training & Support
Franchises often make growing your business much easier since they are pre-packaged systems that you’re able to learn from and replicate. The franchise company will provide all of your training, along with support during your first year in business. This type of assistance is invaluable for people just starting out on their own and can help ensure that you succeed right out of the gate. When compared to independent businesses, those run by franchisees are 4 times more likely to be profitable within their first year.
Proven Business Model
By purchasing a franchise, you’re not only buying an opportunity—you’re also buying into an already-proven business model. This can help save you time and money by providing you with much of what you need to get your business off on the right foot. Plus, franchisors are typically known for their efficiency and attention to detail in everything from operations to marketing; if that’s something that interests you, then why reinvent the wheel? After all, thousands of people have already done it before—so why do it all over again?