As more and more people try their hand at entrepreneurship, we see welcome additions to the conventional business models of the trade. Today, brick-and-mortar enterprises enjoy greater visibility as they venture into digital marketing, and businesses that are solely online are getting the hang of both online and offline methods of promotion, lead generation, and selling.
However, despite the steady growth of online business, there are still traditional business models that remain lucrative and prevalent. Such an example is franchising. In 2014 the International Franchise Association projected franchise businesses to grow faster than the rest of the economy – an addition of 12,915 of franchise business, bringing total U.S. establishments to 770,368.
The franchising industry was also expected to generate more than 100,000 jobs, mostly coming from the food service sector. With these promising numbers, and a slow but stabilizing economy, no wonder many people still opt to buy a franchise when they want to invest in a business.
But what is franchising?
Franchising is a business arrangement where a franchisor (owner of the trademark) allows a franchisee the rights to use the trade-name, processes, and business systems, to produce, market, and sell the same products. It is common practice for the franchisee to pay a one-time franchise grant, as well as royalties in the form of sales revenue percentage.
Top 5 Reasons To Buy A Franchise
In a manner of speaking, buying a franchise has to be one of the easiest ways to get into business and it sure has its perks. Listed below are five reasons why you should consider franchising.
Immediate brand recognition.
Businesses with traction and success normally expand into franchising, and this often means their brand is easily recognized by your target market. Consumers tend to patronize brands that are familiar. Assuming you set up your franchise in a good location, it will not be hard to lure customers in.
Tried and tested processes.
A brand goes a long way before it can begin to franchise. This includes perfecting business processes, which takes time. With that being said, buying a franchise from a trusted brand will remove a lot of the guesswork startups encounter, such as finding suppliers and creating marketing strategies.
Built-in support system.
Good franchisors are committed to the development of their business. While brand recognition is crucial to a franchises’ success, it is equally important to sustain a strong business relationship between the franchisor and franchisees. This helps the brand to continue to flourish with a support system that can include manpower assistance, technical support, promotional support and more.