One in every 12 businesses in the US is a franchise – here are 6 advantages franchises provide:
1. Longevity: over 90% of franchised businesses remain in business after 7 years, vs. less than 20% of independent businesses after 7 years!
2. Training and support: with most franchises, previous industry experience is not a requirement. A good franchise will train the franchisee on running their business from start to finish.
3. Critical start-up assistance: the start-up phases are always the most challenging for any business. A good franchise offers extra assistance and great knowledge during the franchisee’s start-up phase.
4. Great buying power: Franchises forge great supplier relationships that typically translate into preferred rates, terms and levels of service from their suppliers.
5. Site preference: a premium location is critical to a business’ success, particularly a business with a necessary bricks and mortar presence. Property managers often prefer leasing to franchises due to the strength of the brand and its track record. What’s more, many franchises provide site selection assistance and negotiation.
6. Ongoing Support: many franchises constantly look for ways to make their franchisees more competitive and successful.