There are some people out there who want to start their own business, but it might be smarter to buy into a business that is already doing well and become a franchise owner. Rather than risk starting your own business which might go bust, you could buy into a business that is already booming. Fast food franchises, such as Quiznos, Subway, Checkers and Wendys often allow individuals to buy into the franchise, and you can therefore own your own Checker’s franchise, for example. You would own a specific location, and you would pay an ongoing franchise royalty out of your location’s sales to the corporation (such as the Checker’s and Rally’s corporation, for example). Outside of the agreed-upon royalty being paid to the franchise corporation, you would keep the remaining profits from your franchise’s sales. You get to piggyback off a popular brand’s established success, and simultaneously learn how to run a business. Here are 5 benefits to being a franchise owner:
1. It’s low-risk, as you can easily research the franchise to see if it’s a good investment. Investing in a franchise is a safe bet, especially if you do your research and check to see how strong that franchise’s brand power is, how well that franchise is doing (in a general sense) and how popular the food is, for example. If your findings prove that this franchise is in good standing and gets positive reviews from customers, chances are it’s not going to be a super risky investment. Many franchises are tried-and-tested, popular businesses that have grown without your involvement. You just get to step in at the right time, and ride the coat-tails of a successful business.
2. A lot of the work is already done for you. The franchise has already figured out the best marketing techniques, the best promotional practices, and they’ve tested visuals so they have the store signage down, logos perfected, etc. The franchise also will supply you with detailed guidance and instructions for running a store. When you own a franchise, so much of the work is done for you, and a huge component of what makes owning a business a headache is relieved for you. Plus, franchises have brand power, and customers already recognize and love them – so becoming ‘known’ is another thing that is done for you.
3. You get to be your own boss and work for yourself. Rather than deal with the current job market or work for someone else, as a franchise owner you get to be your own boss and control your own schedule. As a franchise owner, you’re the boss and you’ll become very motivated to succeed, since the profits from sales (outside of the royalty) are all yours. Being your own boss is a huge advantage, because you can’t be fired and you don’t have to put up with unfair treatment from an employer.
4. You’ll always be supported. The franchise corporation will always support its franchise owners. They’ll help you negotiate deals to get lower prices on equipment, they’ll answer questions, they’ll give you advice, and they’ll give you ideas. It’s nice to be part of a bigger corporation, because the support is always there. Since the franchise corporation wants you to succeed, they’ll be motivated to help you should you need extra support.
5. It will teach you how to run a successful business. Owning a franchise will teach you how to run a successful business. All of the instructions, guidance and advice that comes to you from the franchise corporation is coming to you from experts who have tested out the best methods and come up with the best business plans. That’s why owning a franchise truly teaches you how to run a successful business, so that if you do want to start your own, you’ll be an expert when the time comes.
Photo by Nick Youngson CC BY-SA 3.0 Alpha Stock Images
