If you’re looking into starting your own business, and you’re considering buying a franchise location, you know that it comes with the loss of control. You have to sell specific products, your store has to look a certain way, your employees have to wear specific uniforms and things of this nature. You don’t have as much creative control over how your business runs.
But what are the benefits of giving up this control and paying the franchise fees? How is this going to help your business and why would people choose to do this, rather than start their own businesses?
Setting up a supply chain is easier
First of all, the franchise will operate within the supply chain that is offered to all locations. This can make it easier to buy products and supplies. You know exactly where to get them, and you don’t have to do the work of trying to source everything yourself.
There are benefiting from large-scale advertising
Another benefit is that advertising done on a national scale can help your business. You don’t have to pay for a TV commercial during the Super Bowl. The company may pay for it. This advertising isn’t targeted directly at your store, of course, but it can still benefit your business.
Name recognition is another draw
One of the biggest benefits of a franchise is name recognition, in the sense that new business owners often have to work hard to tell prospective customers that they exist, that they offer a good product and what those customers should expect. Your customers, on the other hand, already know exactly what to expect and they have experience with your brand in the past.
If you do want to start a franchise, just make sure you know exactly what legal steps to take and what your obligations will be once you begin.
*NOTICE: This blog is intended solely for informational purposes and should not be construed as providing legal advice. Please feel free to contact us with any questions you may have regarding this blog post.