Why franchising is a smart Business solution

Recently many entrepreneurs have opted to invest in it and thus start a company under this business model, which is characterized by the variety in its application networks because it is an innovative business solution.

 There are dozens of professionals who desire to become entrepreneurs but without knowing what to invest in. 

The option of acquiring a franchise stimulates and facilitates this desire of many people to stop working for others and obtain a reward more linked to personal effort.

Building and building a brand is costly for any small business. By acquiring a franchise, you can exploit a name that is assumed to be already positioned in the market, with a reputation recognized and endorsed by customers.

Statistics from the International Franchise Organization show that only 5% of independent businesses survive in five years, while in franchised businesses (entrepreneurs who acquire a franchise), the percentage successfully rises to 90%.

By allowing third-party companies (franchisees) to promote your business, makes it easier to generate more noise and brand presence as a whole. 

It is not the same to try to carry out a marketing campaign individually to work together with a series of franchisees, where they all benefit from a more significant brand presence in the market.

Using a franchise format, you get the option from the outset to receive training and coaching on a business model that others have already used. 

Through manuals and training, the transfer of know-how improves the new entrepreneur's ability to resolve conflicts and situations previously experienced by the franchisor.

Using a proven business method makes it easier for the new entrepreneur to accelerate the famous learning curve of the business, allowing you to start operating and see profits in a shorter period than if you did it yourself without any experience.

Volume discounts are usually out of reach for businesses with only one location, but they are easy to attain with a franchise model. Utilizing a single distributor for all of your franchises often opens the door for volume discounts while streamlining your company’s distribution.

The perks of instant volume discounts are appealing to prospective franchisees because they can be enjoyed even before developing their customer base. Something that would be out of reach for a single small business.

Franchising can open the possibilities of what’s feasible for your business in terms of technology as well. For a business with just one location, it would likely be cost-prohibitive to create customized software for booking, training or customer loyalty. 

However, a customized software solution becomes more cost-effective as the number of businesses that you will be using will rise.

The main advantage of opening a franchise is that your business will be part of a successful system that can support you to reduce the chances of failure. Enough of trial and error.

In addition, you will have the benefits of having a work team and brand synergy, greater visibility with less investment in advertising, technical support, you will be able to share the technological and market research prepared by the parent company, and you will have the benefits of an economy of scale.