Reasons for (Advantages of) Buying a Franchise
The point of view of this part of the book is from the perspective of someone who is going to buy a business franchise. A set of reasons makes people choose the franchise method between buying a franchise branch and launching their own business. The main reasons for that choice are the following:
When you want to launch a business, you will face many problems that do not exist if you launch a franchise business.
In the smart franchise startup, you can start a business very quickly and in a short time, without facing complicated problems.
You may need to spend a large amount of money to start a personal business, but in the franchise business, the cost of buying the franchise may be more than the cost of launching the business; however, if you consider it in the long run, calculating the amount of the contract that will reimburse you along the way, it will be more financial to you to receive the franchise.
The risks and losses you may incur on your personal business can cost you several times as much as buying a franchise.
The main offices of franchise businesses, offer you better purchases at lower prices because of the greater number of branches and the more relations they have in the market. If you run a business like a fast-food shop for which you buy foodstuffs at a certain price, do not doubt that you can never buy the foodstuffs you require as low as that of a franchise business. It is important that you maintain the same level of quality as the other branches in the franchise chain. In fact, because you are in the franchise business, you benefit from buying cheaper in another way.
In addition to buying at a lower price, marketing and advertising cost is significantly reduced or even eliminated in the franchise because it is in charge of the central office
In the process of launching, and running a startup and a business, you need to go through different stages and do various paperwork, while getting a franchise is an easier task because the part of business startup steps are already done and the standards are pre-determined. Therefore, you have far less paperwork to do.
When buying a franchise, you are required to comply with standards that have already been determined for the location of the business and, this way, you are less likely to choose the wrong location.
There are three things to consider when launching a business: location, location, location! Note that nothing can be more important than the location you choose for your business
In the franchise method, you can take advantage of the knowledge of the head office to select the location because the head office has enough experience and has already paid for the wrong choices. But a person who intends to start a business does not have enough knowledge on his own.
The knowledge that is passed on to you in the franchise business will prevent you from losing.
In a franchise, you are not involved in the contract for life, and the contract duration will give you a choice to extricate yourself from the business or keep it up
The franchise has an ongoing education system; from the beginning of the path of the business startup, you will be trained and supported throughout the work. Based on all the mistakes, knowledge, and information s/he has gained over time through establishing various branches, the business franchisor trains new branches from the beginning and monitors them along the way to take the right way. When you start your own business, you may use different training classes, but these classes are more theoretical, and you still do not know how to put the methods into practice. On the way, there will be problems in the business that may incur huge costs to solve.
When purchasing a franchise, you will always enjoy the experience and tutorials of the head office.
In starting a business, precise quality control with the clear timing is not always an easy task. But the franchise management system, with multiple trainings, performs quality control as a network and it facilitates this process
In launching a personal business, in addition to the high expenses, branding will be time consuming and difficult for you, but in the franchise, you are backed by a large company with professional advertising tools and standards.
By taking on a franchise, you will enjoy the branding benefits of the franchisor. When you start a smart franchise business, for example, a McDonald's branch, you will actually benefit from advertisements of the whole brand collection and you compete with a large number of people who work independently in the same type of business; however, in the power competition, you have the upper hand because you are supported with years of experience and expertise.