Deciding between Large and Small Franchise Opportunities

Prospective franchisees have to start their career with an important decision: which of an almost unlimited number of franchises is best for them. As much as separate businesses differ from each other, the choice most commonly comes down to making your mind whether you would rather join an emerging or an already established franchise. The benefits of either depend on the preparation and personal qualities of the franchisee. The level of risk, the relationship between franchisors and franchise partners, the effectiveness of communication with clients are never the same between two businesses. There is no way to prove one kind is universally better, because of a number of prerequisites one must be informed of first:

Independence and bureaucracy

As much superior as it seems at first glance, a larger business provides a large setback in the way of adventurous and communication-bound franchisees: it has layers of staff, which one needs to go through in order to reach the creative department with a new idea. The situation with contacting the franchise owner or the ideologist of the company is the same. There is a giant barrier, which consists of innumerable employees, secretaries and administration. A franchisee who wants to make an impact within the company they do work for would find it more difficult to achieve in such an environment. At the same time franchisees would feel relieved to know that they can rely on proven practices and hierarchic constructions set to undo any potential damage a wrong decision would otherwise imminently cause to a smaller brand.

 Recognition and initial fee

Big franchises usually had a longer time to evolve into what they are than small franchises. To become big they created a name for themselves and are now more recognizable. Gaining the right to use their intellectual property, and also their training, normally guarantees a big customer flow from its very establishment. However, the owners of a renowned franchise usually know their business well and would only agree to sell franchise rights to somebody against a fair sum, which correspondents to the easiness of running it. A large franchise would require more of a starting budget than a starting one. This is why an emerging businessman would prefer a smaller brand given they have limited money and a strong belief in their own ability to make a franchise successful.

Locations and advertising

Established franchises have usually developed a working network and a strategy how to evolve their trade globally. In the way empires in the past separated their land into territories franchises divide the map into sectors with separate units taking care of each local market. Aside from the common ownership, what unites them are the brand and advertising. There are global advertising campaigns, and, in some cases local ones, which take care to spread the word and make the brand popular and bring in a growing group of customers. Advertising does not depend on single franchisees, which means they are spared another thing to handle. On the other hand, popular franchises are more likely to be already taken for the territory one is settled in. If one wishes to open a popular retail in their hometown that may be impossible due to somebody else already having bought the rights for the respective area.

Training and finance

To be able to make a franchise work you need to study it carefully and get an idea of how its components function. One of the foremost benefits of established franchise is the quality and amount of training practices. Teaching adults is difficult and making the most of the scheduled hours to prepare employees and franchisees is essential.

Big businesses also give you a financial strategy and are more likely to have a plan B in case things start going badly. With an emerging brand you set the boundaries by yourself, but it lacks financial history.