Franchising vs. Starting Your Own Business
One of the biggest perks of owning a business is being your own boss. You decide how you work, how big your venture is, and how much you make. All it takes is a smart investment withYa a solid business idea.
Today, you don’t necessarily have to do the hard work of starting a business from the ground up — from coming up with a business idea to designing a product line and service model and building a reputable brand. A franchise takes the hard work out of starting a business, providing you with a complete start-up kit for success.
So, do you want to be your own boss with a business that’s set up to thrive in the Canadian market? The next step is to find out the right type of business for you. Learn all about franchises and how they compare to starting your own business.
What is a franchise? How is it different from starting your own business?
A franchise is a type of business that allows entrepreneurs like you to buy into a brand. When you do, the company grants you a license to use their name and trademarks, business model, operations, and systems to run a store or service.
Examples of the Biggest and Best Franchises in Canada
Chances are, you’re already familiar with some of the biggest franchises in Canada and around the globe. Think about McDonald’s, 7/11, Wendy’s, Subway, Tim Hortons, and more. While these are major brands, most of their stores are actually operated by local franchise owners. For example, 93% of McDonald’s restaurants worldwide are franchises.
This means the stores carry the same products per region and have the same design, but the main corporation isn’t involved in the day-to-day operations. Instead, it’s franchise owners who bought the license to run and own the business.
How does a franchise work?
Everyone is familiar with how a traditional business typically works. It starts with a novel idea that fulfills—or creates—demand in a target market, creating a product line or service model, and continuously building the brand through marketing campaigns, customer loyalty programs, and other brand awareness and customer service strategies.
But a franchise in Canada does away with all of that. Rather than build it yourself, you’re buying into a renowned, highly successful brand. You don’t have to cultivate the demand for the most popular products; you only need to cater to an existing customer base in national or regional markets.
Buying Into a Household Name
By buying into an established franchise, you gain access to their name and business model—and the license to operate under these. Similarly, they provide you with their entire product or service line and equip you with tools, machines, manuals, and the whole operation system. As a result, it’s easy to draw customers, turn a profit, and recoup your franchise fee.
Beyond the startup phase, a major pro of owning a franchise is having ongoing support. When you start your own business, it’s entirely up to you to mitigate risks, develop solutions, and figure out how to survive in a competitive market. But with a franchise, you get an entire support system with expert advice and research, so you can cater to quickly evolving customer needs.
Weighing Pros and Cons of Franchising: The Success Factors Behind Every Franchise
Are you deciding between a franchise and starting your own venture? Buying into an established brand is just one of the many factors behind successful franchises. More than a turnkey business model, the best franchises in Canada are a winner in every aspect, from ROI to long-term success.
Let’s look at how:
1. Low cost
Franchising a location of an established brand may sound expensive due to its inherent prestige, but it’s far from reality. In fact, it’s just the opposite. The startup costs for a franchise are relatively low.
Aside from the initial franchise fee, you can leverage the buying power of the brand to obtain the necessary equipment, resulting in a better deal. And while you may pay ongoing royalties to the company, you get an established brand name and proven system that are most rewarding for business.
The best part is, franchising makes it easier to qualify for financing. Lenders are more confident in financing the startup of established franchises. They know that the business model works, so franchisers are at a lower risk of defaulting on repayments.
2. Centralized brand awareness and marketing
Customer acquisition and retention are two of the biggest challenges that businesses across Canada face. Independent business owners must shoulder the associated costs, from marketing and advertising to generating repeat purchases.
Meanwhile, when you franchise, these costs are eliminated. As part of franchising’s turnkey business solution, direction for brand awareness and marketing are entirely corporate concerns. Your role as a franchisee is to deliver the brand’s promise in-store, in every customer interaction.
As for general, system-wide marketing, the company handles it through an Advertising or Brand Fund. While you may need to take care of some local marketing pieces, you’ll have a complete media kit, and even recommended vendors. All in all, it won’t take as much to reach new customers and drive engagement compared to starting your own business.
3. Training and support
A franchise for sale is more than an established brand name and business model. It’s also built for sustainability. Aside from tools, equipment, and systems, you’ll also receive ongoing training and support to be a better, more successful franchise owner.
Before handing you the keys to your own franchise, the company will host training sessions at their corporate offices. Then, once you’re up and running, they can also provide coaching and consulting through field staff, the owners, and even other franchisees.
4. Exclusive territory, multiple locations
Franchises are set up for success because no matter how many franchisees a brand has, each one will always have access to an exclusive territory. So even if you carry the same brand in a province, you won’t be in direct competition with each other.
Brands do this by restricting the number of franchise locations within a certain radius, and that area will be yours. From here, you get the opportunity to open multiple locations within your territory and grow your business.
5. Set up for success
With all of these factors, it’s not surprising that franchises are known to succeed in the Canadian market. Unlike building your own brand and operations from the ground-up, an established franchise like Gorilla Bins provides you with everything you need to succeed. All you need to do is follow the well-formulated system already in place.
Get Your Own Gorilla Bins Franchise
Are you in the market for a business investment? Now, you can be your own boss, without the hard work and time it takes to build a successful business from the ground-up. Gorilla Bins is one of the best franchises in Canada.
With Gorilla Bins, you get the complete package, from brand awareness to an entire business model and ongoing support. With one of the best franchises for sale, you can bring the essential services of Gorilla Bins to new markets in need of junk removal and waste disposal solutions and own a successful territory. Get in touch with our team to learn more about the pros of franchising and how we set you up for long-term success with your very own franchise location.
Are you looking for the best franchise for sale in Canada? Discover franchising options at Gorilla Bins and tap into one of the most essential and successful industries of all time.