Someone investing in a franchise is buying a total ‘system’ rather than a business. In other words, in a quality franchise system, all aspects of the business have been thought through, including the sales, marketing, personnel, location, product selection and working capital requirements. It’s often said that one of the biggest advantages of franchising is that it allows individuals to go into business for themselves, but not by themselves. A franchisor helps the franchisee get started and provides training, inventory, site-selection assistance, marketing and more.
Owning a franchise also often gives owners instant name recognition. Rather than starting a business from scratch, franchisees enjoy the benefits that come from a proven name and concept.
According to Steve Rosen, CEO of FranNet, an established network of franchise consultants, ‘becoming a successful franchisee requires more than giving your money to a franchise system. It requires a lot of hard work.’