Franchise Business Model – the Best of Both Worlds
You can find the franchise business model in various industries all over the world. Franchising has dominated businesses, from hotels to apparel to furniture and a whole lot more. Above all, it has brought billions in annual revenues. The franchise business model offers franchisees the best of both worlds. Read on and find out why.
How a Franchise Business Model Brings You the Best of Both Worlds
You’re the Boss!
After signing the franchise agreement, you are entitled to replicate the franchise business model and operate your own business unit. Moreover, you have a business you can call your own. This is without going over the hassles of businesses that start from scratch. According to Servpro, a franchise company, franchising offers the advantage of starting a new business quickly based on a proven franchise business model. As Business Media Live published, franchising offers entrepreneurs to be their own boss while relying on the support of the brand behind them. You oversee the day to day operations or you can run it yourself.
The Rules
Although you answer to the franchisor, submit required paperwork and pay agreed fees, you are still considered the boss in your unit. You own your assets in the area you operate. You can have control over your time schedule and the amount of time you spend with your business commitments, etc. However, you should not deviate from the franchise business model. To quote Franchising.com, “For many, franchising’s greatest appeal is the opportunity for an individual to control their destiny and secure their future.”
Everything Has Been Laid Out for You
What makes a franchise business model attractive to many is that everything is laid out. This is something beneficial to the franchisee who can also reap the success of the brand into his operation. A successful base model, as what Inc.com calls it. Most of the time, franchise business models have been successful in various locations locally or even internationally. The reason why the business expands is because it has an established track record. For example, Tim Leighton, franchise owner of Northwood St. Albans Office in a post by The Franchise Magazine, says that franchising offers the best of both worlds. That is to say, apart from the rewards of owning your own business, you are also getting a support system and the stability of a proven business system.
As the book Franchising for Dummies state, you can use the franchisor as your compass. For instance, you will have the security of strong allies in the presence of your franchisor and the franchise business model of your brand. The same book mentions that one big advantage that franchisors can offer is experience. This is something that a franchisee should take advantage of. When it comes to location, training, marketing, and even branding — all aspects of operating the business have a trusted guide to follow. Just consult the manual or ask your franchisor.
According to Franchising.com, it is not just start-up hassles that have been straightened. The franchisor offers his ongoing support and the franchise business model. In effect, iFranchise Group says that franchising can offer less risks. Houston Chronicle supports this statement by saying that franchising provides potential owners with the business template and an established brand.
Conclusion
The franchise business model is too good to let pass. It offers a lucrative business strategy that has been established for many years and in many locations. Moreover, it allows you to put your managing skills to good use. Most importantly, it gives you the satisfaction of having a business that you can call your own. However, the International Franchise Association advises prospective franchisees to do their research real thoroughly. In conclusion, evaluate the strength of the franchisor and also the history of the brand, success of the business franchise model and the franchise agreement.
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