Special Franchising Edition
Buying a Franchise vs. an Independent Business: What Are the Pros and Cons?
You would love to operate your own business, and over the years you’ve set aside money to invest in a company to fulfill this lifelong dream. And when it finally comes time to running a business of your own, you’re left with two options: buying a franchise or buying an independent business.
While both options put you at the top of the corporate ladder, they each have their own unique advantages and drawbacks.
Franchises are essentially ready-made businesses. You don’t have to develop a new service or product that fulfills an existing problem. Instead, a franchisor provides the business model, training, assistance, and even market research. The products and services have already been developed, and the business typically has an established brand and customer base. When it comes to jumping into a more managerial role with established work processes, marketing strategies, and advertising, a franchise definitely has its benefits.
So, what is left for you to do as a franchisee? Of course, you’ll still have a lot to manage within the business just like within a standalone business.
To Buy Or Not To Buy – Taking On A Franchise Versus Going It Alone
Type “Start your own Business” into Google and not only will an overwhelming amount of business start up information and advice appear before your eyes, but you’re also likely to be bombarded with details about a myriad of franchise opportunities to explore.
Buying into a franchise can be seen as a shortcut to business success and, as a franchisor myself, I am of course a huge advocate of the benefits of franchising opportunities – if the correct research and due diligence has been done and franchisor and franchisee are a good match for each other.
But for anyone considering taking the first steps towards launching their own enterprise, what are the advantages and disadvantages of buying into a franchise opportunity with an already established brand versus striking it out on your own?
Ultimate Guide to Business Franchising
Franchising is a great way to start a business, but before you decide to spend the thousands of dollars needed to buy one, you must do your due diligence. It is critical to understand what a franchise is and how it differs from a chain. Owning a franchise does not work the same way as a business that comes from an original idea you have.
A franchise is a business that is owned by one or more people who, under that business, provide a solution following the branding and rules set forth by its corporation. As a part of ownership, the corporation assists its franchisees and charges a flat fee along with fees based on profits or sales of its franchisees.
The International Franchise Association defines a franchise as a “method of distributing products or services involving a franchisor, who establishes the brand’s trademark or trade name and a business system, and a franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor’s name and system.”
Do I need business experience to run a franchise?
Typically, franchisors are offering a franchise package that delivers a training programme to allow ‘inexperienced’ people to run their own businesses. This may include both business skills and appropriate service or product training.
Often, the franchisor would prefer someone with no experience in the specific sector and/or preconceived ideas of how to run the business. While a franchisor may be happy to take someone into the franchise who has no previous experience of running a business, there still need to be levels of capability. It is probable that, in a white collar franchise, it will look for someone who has a form of experience in a white collar role.
Most franchisors will take the approach that they can teach someone the practicalities. What they can’t teach is attitude. Everyone can follow the plan, but do they have the right mindset to follow the plan?
The 6 Best Financing Options for Franchising a Business
Offering both the flexibility and independence of being a small business owner, plus the support and infrastructure of a large corporation, a franchise can be the ideal opportunity for anyone interested in becoming an entrepreneur.
Even so, opening a franchise requires a significant investment of capital — often including a hefty franchise fee along with ongoing royalties and advertising costs. Not everyone has access to that kind of cash. So, if you need a business loan to fund your franchise investment, you might find it challenging to navigate the various options available.
5 Ways Cutting Corners Hurts Your Franchise Business
Becoming a franchisee has immediate advantages that make it an attractive business opportunity for entrepreneurs — established brand/reputation, tried tested and true templates to follow, franchise support services and a pre-existing customer base are just a few of the benefits.
While these are critical components to the success of any business, franchises run a risk of depending heavily on these factors to be successful.
Is Franchising A Fit? Three Considerations Before You Jump Into A Franchise Opportunity
The franchise industry is expected to add more than 800,000 U.S. jobs by the end of 2021, totaling 8.3 million jobs nationwide. According to data shared to webinar attendees by the International Franchise Association (IFA), this will be the largest yearly growth in franchise establishments ever. This growth equates to 26,000 new franchise businesses in 2021, increasing the total number of U.S. franchise establishments to 780,188.
Keyser is a commercial real estate brokerage that serves tenants and occupiers of space, and our retail department that works with retailers, franchisors and franchisees has seen so much activity surrounding franchising. Why? Because franchises are proven concepts that allow for expansion backed with corporate training and support. They are accompanied by an almost guaranteed success model. If you’ve been in the market for a new business venture, franchising may be in your future.
Transitioning From Corporate America to Franchise Business Ownership
The new year is here, so many people are taking stock of their personal and professional lives to determine their direction for 2020 and beyond. Will this be the year you finally run that 5K? Is 2020 when you’ll tackle that home remodel you’ve been discussing for years?
Is it finally time to open that franchise business you’ve dreamed about?
Taking on a 5K is a terrific goal, and home improvement projects bring lots of happiness, but neither is as life-changing as abandoning life as an employee for the thrill of entrepreneurship. That’s something I’ve helped people do for more than two decades now, so I understand how hard it can be to break the chains of traditional employment – especially when that job is in corporate America.
Corporate jobs are often loaded with fringe benefits, making it difficult for employees to leave. Health insurance, retirement plans and company vehicles are just a few of the perks I’ve heard candidates discuss as reasons they were apprehensive about going out on their own. I like these perks as much as anyone, but I’m not going to limit my potential as a business owner to keep them. And with a whopping 30.2 million small businesses open in America today, there are obviously others that agree.
Should You Invest in a Food Franchise?
Food franchises are everywhere. With new locations popping up each day, more food is being served to hungry customers, more opportunity is available to ambitious entrepreneurs and more jobs are being added to the economy. Big name brands like McDonald’s, Wendy’s and Chick-fil-A have helped drive the growth of the food and beverage franchise industry. As the most popular segment in all of franchising, the food industry now represents more than a third of all existing franchises — and it is only expected to grow.
People love food and hold true affinities for their favorite brands. So it’s no surprise, as entrepreneurs look to franchising, they flock to their favorite food franchises.
But, be warned. Though the right entrepreneur can join a highly satisfied group of franchise owners in the food and beverage industry, the wrong operator could succumb to the compounding challenges of the famously difficult and fiercely competitive industry: high investment costs, razor-thin margins, long exhausting hours, ever-changing customer tastes, and near-constant employee turnover.
The Pros and Cons of Owning a Part-Time Franchise
Franchise ownership is a goal shared by many; however, successfully transitioning from working a full-time job to running a full-time franchise may seem dauntingly difficult. The bills still need to get paid, the children still need to eat, the risk might be too great. However, there is another option that makes franchise ownership more attainable: going part time. And, better yet, it’s an option offered in franchise categories ranging from hair cutting to interior decorating to fitness.
The Definitive Guide to the Best Franchise Marketing Podcasts
While franchising is a large and important driver of the U.S. economy, industry insiders realize and appreciate that in many ways franchising is a relatively small ecosystem of brands and suppliers.
Moreover, franchising has never been accused of being on the “bleeding edge” of new technologies and unproven ideas.
So, it should come as no surprise that podcasting is an underdeveloped franchise marketing resource.
There are currently more than 600,000 active podcast shows available online. Based on conversations with franchise industry experts and my own research, I’ve featured the top franchising podcasting series below.
Why should you consider listening to podcasts? You’re already being bombarded with “new” marketing opportunities from your colleagues and suppliers every waking moment.
For one, you decide when and what content to consume without anyone selling you. Additionally, you can listen to podcasts while you work out, travel to and from work, or in the evenings after you get home. They are relatively short (versus books on tape for example), free, self-paced and no one is offended if you skip episodes or drop off at your leisure.
Funny, Inspirational Quotes About Franchises
Franchising is a business model that born in the U.S. with the Singer Sewing Machine Company in 1851. In many countries around the world, America is best known and often characterized by its pervasive all-American franchises. Many of the largest U.S. retail and restaurant chains are completely dependent on their franchise locations and franchise owners for their success.
What do consumers, business leaders, and famous founders think about franchises and franchising?
These are funny and inspirational quotable quotations about franchises, franchising, franchise owners, and specific franchise chains like McDonald’s, Burger King, Taco Bell, Wendy’s and KFC. These franchise quotes are arranged in no particular order.