Nine Franchise Benefits You Simply Can Not Deny
Have you ever thought about owning your own business? Being your own boss? Earning a lot of money doing what you want to do? If so, you are not alone. According to the Small Business Association, more than 600,000 new businesses open in the U.S. each year. Unfortunately, the failure rate for new businesses is high. The Bureau of Labor Statistics reports that 20% of new businesses close in their first year, and more than half, 66%, will be out of business within a decade.
To help increase the chances of succeeding in their new business venture, many investors choose to take advantage of the franchise benefits of buying into an established company, rather than building a business from the ground up.
What is a Franchise?
A franchise is a way for you (the investor, or franchisee) to operate a business based on a proven model of operation developed by an existing company (the franchisor.) You pay a franchise fee for the right to use the franchisor’s name and business model for a specific number of years, as well as for assistance in setting up the business, and continued support after you become operational. Because you’re buying into an already established brand, you get up and running faster.
Those new to the world of franchising may believe incorrectly that franchises are limited to quick-service and fast-casual restaurants. That couldn’t be farther from the truth. While roughly half of existing franchises do fall under the food and beverage umbrella, there are hundreds of widely varied industries selling franchises, including exercise studios, tutoring, child care, senior care, health care, automotive repair, hair salons, janitorial services, home repair and remodeling, and many others.
The History of Franchising
Franchising has been around a lot longer than you might think. In 1731, Benjamin Franklin entered into an agreement with a man to operate a printing shop in Charleston, South Carolina. Under its terms, all the equipment and paper needed for the shop would be purchased from Franklin. Franklin would go on to open at least a dozen other printing shops this way.
Other early franchisors included Robert Fulton, who licensed his steamboats, and Martha Matilda Harper, whose hair salon franchise empire lasted from 1888 to 1972, according to the International Franchise Association. After World War II, franchising really began to take off. Veterans with funding provided by the GI Bill were eager to get into franchising, and in the 1950s and 1960s came the fast-food franchise boom.
The Value of Franchising
If you’re still debating the value of franchising versus starting a business from scratch, here are nine franchise benefits you simply can’t deny.
You’ll have a good idea of how much it will cost before you get started.
The initial investment to open a business can be significant. One of the franchise benefits is that the franchise agreement will detail your upfront costs, including the franchise fee and the percentage of profits or royalties you’ll have to pay to the company each year.
It may be easier to obtain financing.
Finance companies are sometimes more willing to back an investment in a proven brand. Also, many companies help their franchises with financing.
Name recognition and consumer trust.
One of the difficulties of starting your own business is building a customer base. As part of a franchise, you’ll start out with potential customers already familiar with the brand who have already gained trust in your company, increasing the chances they will choose you over your competitors.
Branding and marketing.
A savvy franchisor knows the best way to use traditional and social media to make sure the public stays aware of your brand and what you have to offer. Without the expertise of your franchisor, you’d have to develop your own individual marketing plan for your business.
Exclusive or protected territories.
A reputable franchisor will typically specify territories in the franchise agreement, either offering protected or exclusive rights within a certain geographical or demographic area to make sure you won’t be competing head-to-head with other franchises in the company.
Site selection and construction help.
Depending on the type of franchise you purchase, you may need a physical location to operate. If that’s the case, the franchisor will help you determine the best site within your territory, taking into consideration many factors including traffic patterns, available parking, and how close it is to the nearest competitors.
Once the site is selected, they’ll guide you through the construction process – hiring the contractors, getting the right licenses and permits, etc. They’ll even help you with the décor to make sure your look is the same as other franchises.
No experience necessary.
It’s not uncommon for investors to buy franchises in industries they’re unfamiliar with. Even if you know nothing about making pizza, cleaning carpets, or remodeling bathrooms, you can still buy franchises in those industries. Successful franchisors offer in-depth training programs for franchisees. You’ll learn everything you need to know about the products or services you’ll be offering, as well as how to run the business itself, based on the company’s proven business model.
Companies want their franchises to be successful to help build the strength and reach of their brand. They will continue to support you as long as you franchise with them. They can help you deal with any unexpected problems that arise, and many offer coaching to help you grow your business.
Franchisor buying power with suppliers.
Many franchisors offer preferred vendor relationships or buy necessary supplies in bulk to get a better price and pass the savings on to their franchisees.
Choosing the Right Franchise
With so many different franchises in so many different industries, it may be hard to know which one to invest in. You’ll want to find an underserved niche in the market and choose a company in that field that’s backed by a proven brand.
The decorative concrete business is a part of the home renovation industry that still has a lot of room to grow. Concrete Craft is the largest decorative concrete franchise in the nation. It’s backed by Home Franchise Concepts, the leading home franchisor in the country with a wealth of experience.
Get Started with Concrete Craft Today
Concrete Craft is growing rapidly, so now is the perfect time to get on board with this brand. If you’d like to learn more about the franchise benefits of investing with Concrete Craft, explore the next steps today.