10 Good Reasons to Buy a Franchise

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As we emerge from the restrictions and lockdowns from COVID, we are getting an increased level of enquires from people who are considering a franchise to set themselves up for their future.

COVID and the subsequent recession has caused significant job losses and business restructuring, which has led many to question the sustainability of their future. This has led to an increased interest in franchising as an option to provide a steady income.

Here are the Top 10 Reasons to consider buying a franchise:

  1. Proven business model – it works! This one of the keys to a successful franchise. The franchisor has developed their business model to point that it works, it is proven and most of the bugs have been sorted out.

  2. Systems and processes – to show you the steps. The Intellectual Property of the franchise which you are buying the rights to, should include the systems and processes to allow you to ‘follow the system.’ It should all be written down and be comprehensive enough to allow you to replicate the business model, with appropriate training of course.

  3. Support and ‘in-house’ technical help – to assist you along. One the major benefits of franchising is the support which the franchisor provides. If the support is effective, you won’t be on your own, you will have them there to support you.

  4. Brand already established – leverage off their brand. Rather than you having to create your own brand and identity, you can leverage off the brand which is already established.

  5. Marketing and advertising materials – already tried and tested. Again, rather than having to start from scratch, you have access to the marketing collateral of the franchise. This should already have been tested and proven, so you know it works.

  6. Key supplier relationships established – saves you starting from scratch. A critical component of running your own business is to have the right suppliers that can supply you with what you need and support you in your business. These relationships should be established and available for you to tap into.

  7. Training – how to do it right. Rather than having to figure out the best way to do things yourself, a strong franchise will provide appropriate training which will allow you to get up to speed quickly and get on with running your business.

  8. Peer support and access to the network – you’re not on your own. Being in a franchise group, with other like minded business owners, is another key benefit of being in a franchise. You have the ability to share and network with other franchise owners in your brand. This provides you with an extra level of companionship and support.

  9. HR assistance, recruitment, job descriptions – this is essential help. HR continues to be one of the hottest issues in franchising, with no sign of it letting up. Having access to a knowledge base which is on top of the key issues takes a massive weight off your shoulders.

  10. Site selection and negotiation (where relevant) – they know how to do this. Rather than you trying to secure your own premises, then negotiate your own lease, franchisors are often keen to assist in this important area. It is another area where you can work with the franchisor to secure the premises you are happy with.

But even with these solid reasons, not all franchises are created equal. Merely buying a franchise is no guarantee of success. That comes down to you; your effort, your management style, your customer service and business skills.

You should also do a Pre-purchase Review before you buy. This checks the financial side of the business. It is so important to be sure the numbers stack up and have them checked by an experienced franchise accountant. This is where we come in. We have vast experience in this area. We have reviewed over 140 different franchise systems so we know what to look for and highlight the key areas for you.

Let me know if you need a hand.

Peter