Top 10 benefits of Running a Franchise

If it’s professional autonomy, independence and success that you’re after - starting your own business isn’t and shouldn’t be the only solution. In fact, a franchise might just be a better solution in unlocking your dream of becoming your very own boss.

You only have to take a quick stroll down the street to realise that franchises are everywhere.

Whether you’re chasing the big household names in the hospitality industry, or after a franchise in retail - there are tonnes of innovative franchise ventures spanning across all different types of industries.

10 reasons why becoming a boss of a franchise is better than becoming a boss of your own business, include:

It’s on the rise

A study by the Asia-Pacific Centre for Franchising Excellence found that, within the last 2 years, that the number of franchises opening in Australia has increased by 15% and now stands at around 1180 businesses.

Brand Power

A new franchisee gets a head start over a self-started business. Unlike self-started businesses, franchises receive help from a pre-established marketing team. This marketing team provides them with invaluable material and advice, allowing them to spend more time on other tasks.

Added focus on building your own business

Unlike individual businesses, most franchise systems are committed to helping franchisees achieve their own goals. Through the likes of field managers and business development they are able to give advice where needed on ways to cut costs, increase profit and improve sales.

Increased business ownership, decreased risk

Whilst there is never any guarantee with the success of any business, investing in a franchise does however provide an individual with the framework to create a business with minimised risk. A franchise’s tried and tested systems, as well as their experience and brand name help franchises somewhat shortcut the typically lengthy establishment of a business.

Competitive edge

Once set up, a franchisee can utilise readily available experience to gain competitive advantage. For your average individual owner, it can be difficult to gain access to the amount of information that a well developed franchise system can supply its franchisees. Also, franchisee’s have the inbuilt advantage of a brand, support and training, marketing, experience, development and other franchisees in the same boat.

Access to finance

Getting a loan from a bank can be incredibly difficult. For franchises however, the process is made easier. This is because bankers usually have a pre-existing understanding of what the business is about - of which has been built up through a long lasting relationship. Unfortunately, this relationship cannot be replicated by a start-up.

Increased buying power

Well established franchises will have strong relationships with business partners and suppliers. They often have someone directly in charge of this task too. Franchisee’s reap the benefits of this.

Increased innovation

Investment in research, innovation and technology are placed at the forefront of most franchises. Franchises tend to be incredibly efficient, swift and effective in their communication, and tend to provide up-to-date data analysis. This provides them with a competitive advantage over startups.

Opportunity for growth

The landscape provided by a franchise can be a great platform for developing multiple units and in successfully expanding a franchises’ reach and brand.

Rules and regulations

All business behaviour must abide by legal guidelines. Franchises have a regulatory code that governs the sector - this plays a large role in ensuring a good and fair relationship between franchisee and franchisor.

If you’re set on becoming your own boss, then go for it! Do, however, be sure to consider the franchise sector as an alternative to the considerably more risky choice of a startup.