Franchising Advices

What Advantages Does Franchising Hold Over Independently Owned and Operated Business?

When you are using a ready-made business model you minimize the risk of failure and benefit from various economies of scale. When you buy wholesale, i.e. furniture, various products and advertising materials etc, their price will be significantly lower than when you seek them out in retail outlets. The cost of developing new products and services is also considerably reduced.

The most valuable help you will be getting is training and ongoing assistance. Training workshops and seminars organized by franchise chains raise the competency levels of your employees and help you adopt the successful business practices of other participants in the chain. Do not hesitate to ask questions. The franchisor can instruct you in every aspect of managing your business: how to select and train employees, how to keep the books, how to improve customer service etc.

Centralized brand marketing is another major advantage brought by franchise systems. If you own just one shop you will not be able to organize a nationwide

Advertising campaign or PR blitzes as major chains do. Do not forget that when they shop from an outlet carrying a famous well-advertised brand, customers get the feeling that they are buying quality. There are franchises out there that are well known to your potential clients and guarantee that customers’ expectations will be fulfilled. If you join a franchise chain your chances for success will rise dramatically. The franchisor could supply you with a piecemeal marketing plan for your business.

Usually franchise outlet owners have easier access to finance because banks deem them a lower risk, and therefore credit-worthy, unlike independently operated small businesses. There are franchise chains that run their own credit schemes or finance some of the initial outlays of their franchise partners.

Last but not least, when one day you decide to retire and move to Cyprus, selling your business will be a lot easier and more profitable if it was a franchise and not a traditionally-owned one.