The Advantages Of Owning A Popular Business Franchise

There are lots of persons who wished to be business owners but the challenge of starting a business from scratch and the long process entailed scares them off. Starting a new business is not something that can be done overnight. It requires thorough planning and enough to start-up finance to back up the plan. Also, there is a long registration process that would be covered under state law before the business can be recognized as one. As a result of this long tiring process, it is advisable that if you wish to become a business owner, invest in a successful business franchise. 

Franchise has over 4000 available branches located around the United States of America. It is a business practice widely common among North America. In 2018, the USA government report shows that there is over 758,000 franchise business enterprise with over 21 million people working with them. This generated about $2.3 trillion of economic activities. Today, more and more people are becoming aware of the benefits of investing in a business franchise.  

What Is A Franchise?

Franchise can be defined as a commercial and legal binding between a business owner and the person who is starting a branch of the business using the business logo, name and other existing details about the business. It is the opportunity to buy an existing business especially after discovering that such business has proven track records of success, a solid supply chain, a successful training program, and expert technical support. The primary business owner is the franchisor, while the individual who is starting a branch of the business is a franchisee. The franchisor supplies the product and other services to the franchisee who sells and operates the business as his or her own. Some of the popular and most successful franchises are businesses with long term records of success hence the buyer has nothing to worry about in terms of whether the business would yield or not. If you are considering buying a franchise, here are some of its advantages.

Advantages Of Franchise

• No Experience Is Needed

Franchise is an avenue to explore the work of a new industry and benefit from a new business career with little or no experience. It gives you the opportunity to become a business owner in a field where you have little or no experience. Unlike starting a business from scratch that requires a good understanding of the business, buying a franchise allows you to run a business that you have no experience in.  The franchisor usually helps fill in the gap of experiences needed by the franchisee to run the business. He or she supports the franchisee extensively so as to promote the growth of the franchisee's business and ensure that the overall business continues to maintain its positive result. The franchisor organizes enough training and programs that would help the franchisee catch up with the business operating systems.

• Benefit From The Franchisor's Collective Year's Worth Of Experience. 

By purchasing a franchise business, you have the advantage of tapping into the franchisor collective year's worth of first-hand experience. You become privy to the company's secrets and experiences all of which would have taken some years of rigorous study. The experiences, trainings, and support all increase your chance of success in the business. 

• Low Risk

Since the franchise is often associated with an already existing business, the franchisee has a larger support system and backing of the franchisor. This, in turn, reduces risk to the barest minimum. The challenges involved in starting a business from scratch is often not available in the business franchise because the business is an extension of an already existing one. The franchisee benefits not just from the long history of success of the predetermined business but also from both the good and bad experiences. These experiences would include how to scale through business risk and face market challenges. As a result, the franchisee is informed and knows how to manage risk. Also, the franchisee has the backing of the franchisor and can be sure of getting support when faced with risk.

• Better Loan Opportunity 

Investors in franchise businesses are quick to get a loan than an individual who is starting a business from scratch. Banks usually consider a franchisee who is seeking a business loan than a starter who wants loans to start a business. This is because of the long history of the predetermined business and the backing the franchisee already has from the franchisor. The banks are aware of all this and know that investing in a franchise is safer than investing in new business.  The franchisee, therefore, has an upper hand in terms of getting a business loan than someone who is just starting from scratch.

• Loyal Customer Base And Brand Recognition 

Among the major challenges faced by an individual who is building his or her business from scratch is finding a new customer. This is one of the main reasons many people prefer to invest in a franchise.  Franchise shields you from the troubles of branding and marketing a new business. By purchasing in the franchise you have access to an established loyal customer base and potential employee pool. Therefore, buying a successful business franchise can make you start earning from the first day of your business.

• Collective Buying Power

When you buy into a successful business franchise and you become a part of the system, the franchisor supplies you with the goods and services that would be needed to run your business. You would inadvertently gain from the relationship between the franchisor and the business supplier and might enjoy some discount in business supplies. This is not so with starting a business from scratch.

• Extensive Franchisor's Support In Terms Of Business Outlook

A lot of business franchise prioritize helping their franchisee find a stable balance in the business. They assist with pre-open activities like the selection of the most beneficial site, site construction, designing, training, financing, business opening and other forms of supports. Some of these franchisors offer loans to the franchisee to run his or her business.

• You Become Your Own Boss

Everyone loves and wants to become a business owner where you are in charge of how you spend your time. This is one of the advantages of franchise. You are your own boss and get support from other bosses, especially your franchisor. Becoming your own boss means you would be able to craft and plan your daily schedule. You have more power over your career and can even decide to work from home if you want. There is a popular saying in the franchise "you’re in business for yourself, but not by yourself."

Renee Friedman, who bought her first FASTSIGNS franchise in 1993, was the preferred signage vendor for the 1996 Olympic Village and currently owns and operates a FASTSIGNS franchise in Central Orlando. She explained that “Being part of a strong franchise, provides opportunities and resources that would not be available as an independent owner. If I need help, have a question about a product or budget or hiring or anything, there’s someone standing by to assist me. We have so much training at our fingertips!”

Disadvantages Of Franchise Business

There is no business opportunity with only benefits and no shortcomings. While the advantages of investing in Franchise supersedes that of starting a business from scratch, the franchise also has its disadvantages. These are highlighted and explained below:

• The Initial Investment Can Be High

Before investing in a franchise, do extensive research on the prices of the available franchise.

The price you pay on franchise depends on the choice you make. For most successful businesses, franchise is generally expensive because the name and logo of the business would be attached with your business, and you be given the necessary supports to help your scale through and start earning. However, there is other business franchise whose records might not be as impeccable as the big companies but offers affordable franchise. The decision lies in which one to operate lies in your hand. 

While carrying out your research, watch out for the royalty charge that some franchisors charge their franchisee. Typically, most high ranking companies charge 4-6 percent of your gross sales revenue as royalty. This inadvertently reduces your profit. However, it is important to note that not all high ranking businesses charge royalty fees. For instance, MaidPro cleaning service does not charge any royalty fee, but the leather, plastic, and vinyl restoration franchise Fibrenew charge a flat rate royalty system that exempts the submission of the financial report by its franchisees.

• Limited Opportunity For Creativity 

In a franchise, creativity is generally limited because the franchise already has a predetermined brand. Hence the franchisee cannot alter or explore the brand to soothe his or her choice. The franchisee also has a limited choice in the aspect of which product to sell or not to sell. There is a restriction on the mode of operation and the suppliers to patronize. All of these are because the business is operating under the influence of the predetermined business model.

• No Financial Information Privacy

On the one hand, the franchisee is constantly required to submit his or her business financial report to the franchisor. Most time the main reason for this is so that the franchisor can help improve the franchisee's business model and to audit the royalty fee. Therefore, the franchisee does not have privacy over financial reports. 

On the other hand, most franchisor also shares their financial report with their franchisees as a way of encouraging them to do better and educating them. In most cases, the franchisee uses this to benchmark their performance and reliability. In situations like this, the franchisee benefits more by disclosing his or her financial report.

Things That Are Often Overlooked In Franchise

If you are looking forward to engaging in a business franchise, here are some of the things to consider. Most times these things are often overlooked as unimportant but ended up affecting the franchise business in the long run.

• Marketing And Expenditure Expenses

It is important as a franchisee to be aware of how business marketing and expenditure expenses are to be calculated. Usually, this is stipulated in the binding contract between the franchisor and the franchisee. As a franchisee, ensure you read through the details and conditions in the contract.

• The Contract Between A Franchisor And A Franchisee Is Not Permanent.

As a franchisor, one of the things to keep in mind is that your contract with the franchisor is not a permanent one. Once the contract date is due, the franchisor can choose not to renew it. Also, if as a franchisee, you are not too contented with your franchise, you can choose not to renew the contract.

• Group Endeavor.

As much as a franchise is an individual business, it is also a group endeavor. There are three people working as a group in the franchise business, the franchisor, the franchisee and every other franchisee working with the business name and logo. Although the committee can be very supportive and collaborative, it can also be very challenging. The blunder of one of the franchise groups can affect the performance of every other person. Ensure you reach out to other franchisees in the business before purchasing a franchise. This would help you have a good knowledge of the community of franchise you are buying into.

• Research Extensively Before Purchasing A Franchise 

Do your research before purchasing a franchise, communicate with other franchisees in the company and investigate the extent of support they can get from their franchisor. If the number of the franchise is overwhelming and you are caught up in the decision of which one to choose, you can consider hiring a franchise consultant to put you through.

After choosing your franchise, research and plan how you would finance the franchise before employing a franchise attorney to help you with the franchise contract. Ensure you read and understand every detail on the franchise contract before appending your signature.

20 Lists Of Franchises That Offer The Best Franchisee Satisfaction.

• KONA ICE 

Food

Investment: $127,750

Cash required: $20,000 

• WILD BIRD UNLIMITED 

Retail

Investment: $170,382

Cash required: $40,000 - $50,000

• MaidPro

Cleaning and Maintenance 

Investment: $74,560

Cash required: $75,000

• PINCH A PENNY 

Retail

Investment: $289,385

Cash required: $70,000 - $150,000

• DREAM VACATIONS

Travel and Hospitality 

Investment: $3,245

Cash Required: $9,800

• Fastsigns

Business Services

Investment: $197, 172

Cash Required: $80,000

• PRECISION CONCRETE CUTTING

Services

Investment: $150,000

Cash Required:$100,000

• CRUISE PLANNERS, AN AMERICAN EXPRESS TRAVEL REPRESENTATIVE 

Travel and hospitality

Investment: $2,295

Cash Required: $10,995

• SANDLER TRAINING

Business Services

Investment: $97,525

Cash Required: $79,000

• VISITING ANGELS

Senior Care

Investment: $83,085

Cash Required: $57,950

• OUR TOWN AMERICA

Advertising and Sales

Investment: $63,300

Cash Required: $70,000

• CHRISTIAN BROTHERS AUTOMOTIVE

Automotive

Investment: $458, 950

Cash Required: $85,000

• SOCCER SHOTS

Child Services

Investment: $41,034

Cash Required: $38,000

• TWO MEN AND A TRUCK 

Services

Investment: $179,000

Cash Required: $80,000

• OFFICE PRIDE COMMERCIAL CLEANING SERVICES

Cleaning and Maintenance

Investment: $59,500

Cash Required $85,000

• MIRACLE METHOD SURFACE REFINISHING

Home Services

Investment: $83,359

Cash Required: $40,000 - $50,000

• TRULY NOLEN OF AMERICA

Services

Investment: $50,200

Cash Required $35,000

• CHECKERS AND RALLY'S

Food

Investment: $203,600

Cash Required: $250,000

• HouseMaster

Home Services

Investment: $60,100

Cash Required: $42,500

• Payroll Vault

Financial & Tax

Investment: $49,135

Cash Required: $42,950 - $70,569.

Summary

Purchasing a franchise offers a better opportunity to become a business owner and start making profits than starting a business from scratch. It is the most effective way to avoid the risk and pitfalls usually encountered in starting a new business. The franchise business is one of the ways a potential business owner can achieve his or her dreams while avoiding some of the challenges associated with starting a business from scratch. As a franchisee, you are exempted from the struggle of getting a new stable customer, running ads and choosing the best supplies for customers. Franchise shield you away from bad experiences by making it easier for you to learn from the experiences of the predetermined business.

Sterling is happily engaged to Paige Milian who currently lives with him in Cheshire .The duo separated for a short time when Sterling was still at Liverpool and reconciled shortly after the star joined Manchester City.

The forward has two beautiful kids. His firstborn, Melody Rose was born in 2012 to Sterling's former girlfriend, Melissa Clarke. However, In January 2017, Sterling and Paige welcomed their first child, Thiago   The footballer is a caring dad who loves his family and often shares their best moments on all his social media accounts.