The Top 6 Benefits of Buying into a Franchise
Why You Should Consider Becoming a Franchise Operator
Starting a business can be incredibly appealing but also incredibly challenging. When successful, running a business offers financial security and the freedom to be your own boss. But it also comes with a lot of work, risk, challenges, and costs when getting started. For these reasons, it may be worth your while to explore the idea of becoming a franchise operator.
Franchises offer the same benefits as running your own business without the high level of risk, legwork, and financial commitment that comes with starting your own company from the ground up.
Keep reading to learn more about the numerous benefits that operating a franchise offers.
What Does it Mean to Become a Franchise Operator?
A franchise is an existing business that is part of a chain. Franchises will have multiple locations, and small business owners can buy into the franchise and operate their own location under that umbrella.
A franchisee owns their business and is responsible for managing and overseeing the day-to-day operations, but will be provided with training and resources from the franchisor.
The franchisee must also follow the franchise’s branding and framework, and pay fees to the franchisor for the right to use the business’s name, trademarks, and proprietary knowledge.
Examples of popular franchises include:
- Tim Hortons
- Circle K
- Gorilla Bins
What are the Benefits of Running a Franchise?
Operating a franchise offers numerous benefits to the franchisee, such as:
- Lower cost
- Help from the franchisor
- Brand recognition
- Reduced risk
- And more
Below, we explain in more detail all the ways you can benefit from becoming a franchise operator.
Ongoing Support and Training
While operating a franchise requires some level of business experience, franchisors offer lots of training and support to their franchisees, making running one possible without a lot of experience in that particular industry.
The amount of support you receive from the franchisor depends on the terms of the franchise agreement that you sign. However, many franchises will provide the following:
- Branding material
- An advertising plan
- Training of staff
- Knowledge and guidance when needed
- A corporate contact
These supports are incredibly beneficial and make starting up your business incredibly smooth and seamless, especially if you aren’t very experienced in the industry you have entered.
Built-In Brand Recognition
When starting a new business, one of the biggest challenges entrepreneurs face in the beginning is generating brand awareness and bringing in customers. It can take months, sometimes years, for a business to generate enough business to be profitable. Without brand recognition and a steady stream of customers, many companies will fail within their first year.
A franchise, however, comes with an existing loyal customer base and already has brand recognition. Because franchises have many locations, your customers will already know who you are because they likely have been giving their business to the franchise for some time.
This kind of brand recognition gives you a significant advantage when it comes to finding your customer base.
More Opportunities For Growth
Scaling a business is no easy feat. But when operating a franchise, expanding your business and opening other locations becomes a more attainable goal.
Because franchises are incredibly profitable and low-risk, and offer lots of support and assistance to the franchisee, it isn’t as difficult to open multiple locations as long as you have the appropriate funds and expertise to manage multiple businesses. This means more money in your pocket.
Operating a franchise offers the benefits of entrepreneurship with significantly less risk than coming up with your own brand.
Franchises have a lower failure rate than other businesses because they offer the following:
- Less financial investment
- Built-in customer base and brand recognition
- Higher profits
- Support from the franchise
- Proven business plan
Marketing And Advertising Assistance
While running a franchise will require some marketing and advertising on your end, the franchise itself typically invests its own money into nationwide marketing and advertising campaigns. This will benefit you as a franchisee because it helps to boost brand recognition.
Franchises will also offer guidance on how to launch your own campaigns.
Financing Is Often Easier to Obtain
It’s no secret that starting a business is expensive. When starting your own business from scratch, it can be difficult to obtain a business loan from a bank because there is so much risk in starting a new business. When operating a franchise, banks are typically more likely to approve financing because there is less risk involved.
Be Your Own Boss
Operating a franchise gives you the freedom to be your own boss, do what makes you happy, make your own schedule, and have more freedom and control regarding your life and career.
How to Choose the Right Franchise
Your success as a franchise operator is fully dependent on choosing the right franchisor, which is why it’s so important that you do your research and make the right decision.
When choosing a franchisor to invest in, consider the following:
- Are you interested in that type of business?
- Does the franchisor offer lots of ongoing support
- Does the company share the same values as you?
- Is the franchise profitable?
- What are the franchise’s processes, rules, and restrictions?
- What are the franchisor’s closure rates?
- What do other franchisees have to say?
Get Started With Gorilla Bins
Looking to become a franchisee but struggling to decide who to invest in? Look no further than Gorilla Bins.
Gorilla Bins is Ontario’s leading waste management business with several locations across the Greater Toronto Area. No experience in waste management? No problem! We’ll teach you everything there is to know about what we do and offer extensive training and support to help you succeed with your franchise.