Franchisees are much more likely to succeed than average business startups. At the point when an entrepreneur starts a franchise, the franchisor has already validated the business model and achieved product-market fit.
The business model comes with more certainty and a proven formula for the franchisee to pursue.
Great examples of franchise businesses include McDonald’s, Pizza Hut and Hampton Hotels.
The entrepreneur pays the franchise owner an initial fee and an ongoing management fee, and in return they get to start their own franchise.
The franchise owner will spend money on national advertising campaigns, provide intensive training and bring the clout of their brand to your business.
Think of the dozens or hundreds of fast food restaurants that exist around your neighborhood. Despite having so many options, the vast majority of people still opt to go to a franchise.
Bob’s Pizza joint has two people standing in line, meanwhile McDonald’s has a line of thirty cars and seemingly endless amounts of people scrambling to get served.
While many of us instantly think of food when we think of franchises, there are franchise businesses across nearly every industry.
There are options in credit repair, children’s entertainment, tutoring and healthcare. According to FranchiseHelp.com, there are even options in dental hand piece repair and mobile drug testing.
Franchisees have some huge advantages over everyday local businesses. In marketing, the franchisor can spend millions on nationwide advertising.
Imagine the power of everyone in your area hearing about what you do. Not only will your franchisor spend more money on advertising, they will typically have a team of marketing experts that are working to strengthen the brand of the franchise.
For a local business owner, this type of activity is hugely challenging to pull off. For the franchisee, this is all handled on their behalf.
Many small businesses worry about recruiting. This is one of the biggest challenges, particularly when you are getting started.
But if you start a franchise, you will get targeted advice, readymade employment contracts, and almost everything else you need to get started. In fact, the franchise business may even be able to help you find candidates.
The price of a franchise will vary greatly, depending on your choice of industry and the part of the country where you want to start your business.
There are some franchise opportunities that come in below $20,000, and there are others that can run into six figures and beyond.