Six Benefits of Franchising When Starting a Business

Posted by Robin Gagnon on Jun 14, 2021 11:01:07 AM

 

When you think of franchising, you may think of the larger brands with thousands of locations across the country. Franchises with brand recognition and seemingly high profit margins like a few that made the top list for 2021, including McDonald’s, Marriott, and ReMax. However, they are not the only game in town. According to Franchise Direct, most franchise systems have fewer than 100 units. This means there are opportunities available for any budget in dozens of industries. You are sure to find a franchise that suits your interests, is affordable, and provides a return on your investment.

6 benefits of franchising when starting a business-2

If you are interested in business ownership but you are not sure you want to go it alone, consider the expansive world of franchising. Starting your own business can be a challenging and risky endeavor. Franchising is a profitable option with a higher success rate. Here at We Sell Restaurants, we are a business broker franchise. Like many franchises, we first built a niche company because we recognized the need for business brokers in the restaurant industry. We grew from there, expanding our model through franchising. Now, we are the nation's only business broker franchise focused on restaurants.

Want to learn more about franchising? Here’s our list of six benefits of franchising that appeal to every entrepreneur.

  1. Brand Recognition

One of the top benefits of franchising is branding. As a franchisee, you pay franchise fees, initial startup fees, and often royalties to the franchisor. You are essentially paying for brand awareness. This is important because it provides an instant customer base due to familiarity in the marketplace. For many franchisees, that’s worth the investment.

  1. Proven Business Model

Franchising means you are in business for yourself but never by yourself. The franchisor has already done the heavy lifting by testing the process, development, marketing, and methods. As a franchisee, you can take advantage of our in-depth training and hit the ground running rather than learning on the job through trial and error.

When businesses, like ours, decide to franchise, they have had proven success and want to grow the brand. As a franchisee, you are reducing your risk by investing in that profitable business model. There’s no need to re-invent the wheel, so to speak. The franchise has efficient guidelines in place to help you grow your business and achieve success. As a franchisee, this means the potential of improved profit margins.

  1. Training

Training is perhaps one of the greatest ingredients in your recipe for success. Franchisees are given a step-by-step guide on business ownership. There are business experts educating you through every decision, and problem-solving anytime you encounter an issue. There is the comfort of knowing someone’s got your back and will support you. After all, the franchisor wants you to succeed as much as you do, and expertise is an invaluable asset.

Guidance includes elements from initial startup like site selection, construction, software training, inventory, insurance, permits, and staffing, all the way through your grand opening. Many franchisors understand the need for continued education to update franchisees on new technology, new developments, and changes in the industry.

At We Sell Restaurants, all our new franchisees attend a four-week training course held both remotely and in person at our training center. Once training is complete, ongoing support comes in many forms, including mastermind calls, e-learning training courses, and a weekly newsletter.

  1. Costs

Two points to discuss about costs. First, if you need financing to secure your business, franchisors can recommend third-party lenders who are often more inclined to approve loans for franchises because of their proven success and reputation. At We Sell Restaurants, we work with companies that help secure financing for new franchisees.

Secondly, being a part of a franchise can often mean steep discounts from suppliers and vendors since they provide large quantities to many franchise locations. Buying in bulk is an advantage that a small startup would likely not have.

  1. Marketing

Promoting the brand is key to the success of any business. Having an established advertising and promotional plan in place eliminates detail work for you. The franchisor has likely already done market testing to determine how to target your audience and what marketing platforms are most effective. While your franchise might have its own dedicated social media pages, there is a national brand campaign to work from which is adapting to customer needs and readily available for all franchisees.

  1. Support

Having a safety net in place is very reassuring for new business owners. Knowing you have a team of qualified experts available to troubleshoot any problems which may arise eliminates stress for franchisees. You never know what can happen in day-to-day operations. There could be supply mix-ups, computer breakdowns, or staffing issues. That’s not a problem. You’ve got a team of highly qualified business experts at your fingertips to untangle the mess.

The benefits of franchising far outweigh starting a business from scratch. There are great money-making opportunities, often with low overhead. The We Sell Restaurants franchise model does not require a costly office lease or build-out. A home office equipped with a strong internet connection is a key reason we are known in the industry as "the restaurant business with banker's hours." You can work from home.

Sound appealing? Request information about owning a We Sell Restaurants franchise. We'll discuss qualifications, financing, training, and more. We're always looking for smart, dedicated entrepreneurs to join the We Sell Restaurants franchise family.

Topics: Restaurant Broker Franchise

New call-to-action
New call-to-action