Question: Why would you buy a Franchise?Answer:
The key benefits of buying a franchise are:
- Taking advantage of the franchise’s branding and goodwill:
Any franchise worth buying should come with it a brand that is both successful and well established. An important reason business owners buy a franchise is to gain immediate access to the franchisor’s clients. These clients will already be familiar and loyal to the existing brand. This takes the burden out of working hard to develop a successful brand and loyal clientele.
The support system provided by franchisors is usually attributed to the higher success rate of franchises. This reflects the fact that it is in the best interest of a franchisor to provide ongoing support and training to franchisees. This advice may be specific to their business model, the location of the business or to training in areas like marketing, merchandising and accounting.
- Trade secrets and valuable know-how of the franchisor:
Franchisors can benefit franchisees by providing them with valuable trade insights that are undisclosed or unknown to outsiders.
- Monetary rewards:
Buying a franchise is generally cheaper than starting your own business. A good purchase price for a franchise will often reflect a franchisor’s access to bulk discounts that aren’t available to stand-alone businesses.