A big name can lead to big success: Working under a well-known brand name such as McDonalds or Subway has obvious benefits for franchisees. There is increased security for your enterprise – not only are you following a tried and tested format, you can also benefit from the bigger bank balances of the larger corporations when it comes to funding for improvements.
You can also save time and energy by not worrying about generating publicity to raise the awareness of your firm – customers will know what to expect from a big chain and will often flock to a brand name.
Having an established market, proven systems and a respected business name means that the battle is already half won for you before you even start your first day of trading.
Ongoing help and support: Once you take up your franchise, your franchisor won’t simply wave you goodbye and let you run their brand into the ground without a word of advice. As well as training programmes and first-hand support, most franchisors help find and retain customers and assist with setting up accounting or stock control systems.
Most importantly, your franchisor will offer financial help in getting the business off the ground. Many help with your initial start-up costs, such as equipment or vehicles, as well as organising marketing and advertising campaigns.
The level of assistance varies according to the franchisor – some have 24-hour-a-day helplines, others have representatives on hand for quick visits to solve various problems. Either way, franchisees are not left to struggle alone.
Defined territory: This is one of the main reasons that makes franchising an attractive option. Franchisors carefully choose the location of their outlets to gain the largest possible amount of custom and to avoid treading on each other’s toes.
Also, unlike starting a business from scratch, many franchisors can afford prime trading premises, such as on the high street and popular shopping centres.
Greater access to finance: If your franchisor is reluctant to part with vast amounts of cash for your start-up costs, there is no need to panic – banks will be happy to help you out.
As a franchisee, you are looked upon more favourably when it comes to bank loans and overdrafts than if you were a struggling entrepreneur trying to kick-start your own firm from scratch. The increased security and reliability of a large firm behind you means that banks will often offer you substantial loans to aid your start-up costs.