Looking to start your own company but don’t know where to start? Buying a franchise is a bit different from building a business from the ground up, and it comes with a fair share of undeniable perks. While you won’t necessarily get to shape the history, voice, or brand of a franchise from scratch, you do get to jumpstart your business-owning dream in the right direction.
If you want a reason to buy a franchise, we have 6 of them. Read on to learn the notable advantages of franchising.
1. Skip the Startup Phase
Building a brand-new business is hard work. Rewarding, yes—but hard work. As a startup, you have to imagine and realize everything: logo, voice, brand, financing, sales model, hiring, training, networking—and the list goes on and on.
When you buy a franchise, you skip the sleepless startup years. You jump right into a time-tested brand that’s done the troublesome work of laying a strong foundation. There are still challenges to face and hurdles to leap, but your mission isn’t to build something from nothing—it’s to take something and make it even better.
2. Reap the Rewards of Allied Advertising
Marketing and advertising quickly become one of your business’s most costly expenses. Eventually, you reach a point where you incrementally gain sales from more marketing—but it takes quite some time to dial in that strategy.
However, when you franchise, you earn sales from the cumulative marketing effort of all the franchises. Yes, your franchise will be expected to contribute a certain amount of resources to advertising, but you’ll also benefit from every other franchise’s efforts.
For example, another location of your same franchise may have invested in some hamburger advertisements along the highway. Your customer begins to salivate when she sees those signs but decides she’s going to get a burger closer to home—and she ends up buying the combo meal from your establishment. That’s the power of allied advertising.
3. Tap Into the Franchisor’s Resources
Franchisors’ buying power often gives them access to equipment, supplies, and even inventory at reduced costs. Franchisors can negotiate deals with suppliers and vendors on a grander scale, enabling individual franchisees to make necessary purchases at discounted prices.
Whether you need commercial refrigerators or tables and chairs for the lobby, your franchisor can score you some super deals.
4. Secure Top-Notch Financing
Franchises are more likely to earn loans from banks and alternative lenders. There are a few reasons for this:
- Lenders know your business model has been proven
- You already have a solid client base, established brand, and franchisor support
- You’re not alone—you have networking access to other successful fellow franchises
These franchisee characteristics reduce the risk that you’ll default on a loan, thereby increasing your chances of scoring grade-A financing.
Plus, franchisors want you to expand their brand, so some will chip in to make it happen. For example, 7-Eleven provides an internal financing program that can provide capital for up to 65% of the initial franchise fee. The UPS Store offers financing options and special discounts—like a $10,000 savings perk for veterans. And Liberty Tax has established relationships with Small Business Administration (SBA) lenders to expedite your loan applications.
5. Access Education Programs
Franchisors have had the benefit of witnessing the victories and failures of potentially hundreds (maybe thousands) of other locations—they’ve figured out what works and what doesn’t. They’ve created a replicable system for success that includes:
- Training programs to bring new hires quickly up to speed
- Time-tested software and hardware that improves efficiency
- Best-practice procedures for launching a new franchise
- FAQs for how to deal with any imaginable scenario
For example, our Lendio Franchise program gives you access to a deep-dive webinar on how to launch your franchise. Once you finish that, our team sets you up for success with detailed next steps and key information. Franchise programs like these are committed to your progress, and they’ll give you all the knowledge and tools you need to succeed.
6. Benefit From Ongoing Support
Sometimes, everything doesn’t go according to plan—and when it doesn’t, you’re not alone. Your franchisor wants you to succeed, and they’ll do whatever it takes to push you in the right direction, including:
- Connecting you to local fellow franchisee owners to learn from their ups and downs
- Providing on-site training for everything from POS (point of sale) technology to bookkeeping procedures
- Offering digital support to deal with emergencies or questions
The Choice Is Yours
Owning and operating a business is difficult, even if it’s a franchise. However, purchasing a franchise accelerates your business-owning aspirations and skips most of the blood, sweat, and tears of any startup’s early years.
While purchasing a franchise isn’t all creamy coffee and decadent doughnuts, it provides a meaningful list of undeniable perks. If you want to build a brand-new venture without any beta, franchising probably isn’t right for you. But if you want to reproduce success and build upon previous achievements, then a franchise may provide all the business-owning sentiments your heart desires.
Ultimately, the choice is yours—but now you know what’s in store if you decide to go down the franchise route.