If you want to set up a new business, you will benefit from learning more about franchising. This article will explain the basics of the concept to help make it a reality for yourself.
What Franchising Means
Assuming you have a very basic knowledge of franchising, it will benefit you to know what the term means. In simple terms, a franchising happens when an established business allows a third party to run a business under its branding. This will allow the third-party access to the trade name, manufacturing, and distribution in return for a small franchise fee plus percentage of sales. Many global companies do this, to grow their organisation organically. There are rules for franchisees to follow, so be aware of what they could all mean for you.
What You Get
When you decide to open a franchise, you will get to run your own business. However, you should be aware that it will actually give you more. For example, in return you will be given the keys to your success, with the business model clearly identified, along with branding.
In a way, a lot of your marketing will already be completed, depending on what brand you are choosing to utilise. This is because it may be a name that people are already familiar with. This brand may also be actively promoting their image online, allowing you to get involved.
Operating as a franchise can also help entice new skilled employees to come with you. They may see an opportunity to join a business that could offer more job security. That’s because whilst it may be a new business, which is usually a risk, it has the reputation of being successful.
There are a few different ways you can get involved with a franchise. Some people will go directly to the headquarters with an investment and a business plan. You should consider opting to implement a more modern and digital approach. Visiting online sites such as Franchise Local can help you find franchises for sale in a range of different industries. You can get all the information you require, from the initial cost to an estimated time for you to break even and start making a profit.
Support
Not only will you be given the keys to success, but you will also have access to support straight away. This will be through your franchise partner, who can aid with setting up your new organisation or help on the technical side of things. It may be that this franchise operates in a unique way, meaning you have to use their in-house software due to trade agreements or just to get set up on the network. Either way, know that you will not stand alone.
Consider speaking to your franchisor so that you can find out what they can do. Your franchisor should be in a position to provide you with support in numerous ways. For example, they could provide you with some initial market research, or have industry experts on hand ready to lend a hand.
