Franchises

Franchises: 3 Reasons to Consider Purchasing One in 2021

Featured image by Artem Beliakin

Many of us dream of running our own businesses. Thus, if you’re one of these people, you most likely have dozens of business ideas running through your head, like purchasing franchises. Could you offer your administrative services to local businesses? Can you turn your passion for baking into a profitable business? 

You may even be exploring party planning business ideas. There are so many opportunities, and when you decide what’s right for you, you’re then faced with navigating the logistics of starting a business. On top of everything else, there’s always the fear that things may not work out the way you intended them to.

What Is a Franchise?

For those who want to go into business but prefer an easier entry into the market, opening a franchise is a widely available option today. A franchise is a business opportunity that legally allows you to start a business using the established expertise of another company. This allows you to use the original company’s name, logos, and business model. 

You often will find franchises in your local area. For example, consider McDonalds, as they have been successfully franchising their restaurants for 66 years. Franchises exist in every sector imaginable, from restaurants to garages, night clubs to daycare centers; there’s a great deal of opportunity for everyone.

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Benefits of Opening a Franchise

Some of the most impactful advantages of running a franchise include:

1. Low Failure Rate

When opening a franchise, you are buying into a brand and business model that has proven success. Statistics show that franchises have a much higher chance of success in comparison to independent start-up businesses. In spite of the many challenges that businesses faced throughout the year 2020, franchises continued to grow and develop.

2. Business Assistance

Opening a franchise means that you would likely be walking into a turnkey operation. So, everything needed for the franchises will be provided, from the necessary equipment to employee training programs. Also, as the franchise owner, you will have access to ongoing training and marketing material. Extensive marketing campaigns are done through the parent company, directly benefiting your business. You will be handed all of the guidance, marketing materials and established processes needed in order to run a successful business. These materials take years of trial and error to establish on your own.

3. Buying Power

Since franchises generally all hold and utilize the same products and materials, your company will directly benefit from the buying power of your parent company. Thus, this gives you a massive advantage over other independent businesses or startups.

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Final Thoughts

However, even with a long list of positives, you are sure to have some negatives as well. Fortunately, the list of negatives runs short in comparison to the long list of positives. Nevertheless, there are hundreds of reasons why some people prefer to go into business for themselves.

However, if you want to jump into running your own business that gives you the upper hand in the forever growing competitive markets, a franchise may just be a good fit for you.

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