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What is a Franchise?

What is a Franchise?

Whether you’re a new entrepreneur starting out or you’re already an investor looking for more opportunities, learning about a franchise is a great way to go. Maybe you’re wondering what a franchise is or how you get started in owning one. Learning what a franchise is can help you in determining whether you want to invest in a franchise or try to start something from the ground up. Here are a few tips on what a franchise actually is and why it is a great investment for your future.

A Franchise is a Proven Business Model

The franchise business is one that has a proven business model and a platform which can be leveraged by new franchisees. If a company is offering franchise options, it means the business model they have is successful and is making a profit for the company and hopefully, when given the same tools and resources, you as a franchisee can replicate their success in your own business. Those who do not have success in their business model typically do not franchise out. That would not be a wise choice for their company as franchising is merely the replication of a business model and operating system, remember the saying “Garbage In, Garbage Out?”. The franchise business model is one that is proven to work in a variety of markets and will be a profitable and successful business where it goes.

Marketing Systems and Business Development

A franchise also means there is a marketing and development system plan in place already that allows a new franchisee to ramp up their business and customer base in a shorter time period when compared with a new business start up. This model helps you to get the word out about your location in a way that is shown to draw in business. By working through the proven model, you can increase your customer base before you even open up your days. Marketing strategies that have been proven to work are already in place so you do not have to try to come up with your own. The brand image should be established, not necessarily with television or national exposure, but the brand should have logos, color schemes and overall branding already set and in place so that you have the tools and presentation needed to effectively begin your marketing and sales quickly upon starting the business.

Mentors and Network

When it comes to owning a business having a good franchise mentor in place is key to your success. Owning a franchise puts that mentor in place from the beginning and provides people who have been in your shoes and worked in the business model with enough time and experience to be able to provide value to you in what TO do and what NOT TO do. You can work with someone who understands the business, knows the ins and outs, and can assist you in all the bumps you may come across along the way. It also puts in place a readymade network of likeminded business people working together. Not only are you networked with great people, you’re working for yourself instead of for a boss. You can have your dream of owning your own business and being successful with a coach and mentor already in place.

Lower Risk

Starting your own business can bring about a variety of risks (a new business is generally in excess of 90% failure rate when compared to a franchise model which has an 80% or higher success rate). If you invest a lot of your own money into a model that is brand new, you may find yourself at a total loss if the business fails to take off. When you use that investment and buy a franchise, you will find yourself at a much lower risk of loss. The brand and the franchise itself is already proven to work so it’s a better investment for you. You’ll find your money is safer going into a franchise than if you were to try and develop a company, marketing plan, and business on your own.

 

So what is a franchise in the end? 

To sum it up, the best definition we’ve found is “entrepreneurship with a safety net,” we felt that this summed up the concept perfectly.  Franchising, when done right is a great combination of providing people with an investment opportunity to become a business owner without all of the risks, fears and anxiety around how to start the business effectively.  It is your business when you buy a franchise, but you have the guidance and support of an experienced partner in your franchisor. 

For more information on what is a franchise, contact us:

https://franchiseconduit.com/contact/

Life and franchising, a common thread?

Life is a big word, it sort of covers it all, family, work, religion, politics, economy, all of it. Franchising is an expansion vehicle for brands that allows for new market growth. What ties the two together?

Unexpected twists and turns in the road certainly are inherent in both life and franchising. Regardless of how much we plan or try to predict the future, none of us had any idea Donald Trump and Bernie Sanders would still be in the election at this point. In franchising, who could have predicted that blockbuster video wouldn’t be here any more?

Franchising offers great promise for growth and the development of a strong brand based on solid company principals that are scaled through the addition of new franchise partners. Life has endless potential when we are young and see the upside in our venture. Through good teachers, wives, husbands and acquaintances, we pave our way to a successful future in whatever we aim to accomplish. Typically, this with strong visions and a commitment to their core values are the ones who tend to have the biggest impact in life. Huh, seems pretty consistent so far….

Franchising creates the potential to replicate ones self through franchisees who buy into the company’s vision for growth. Good systems and infrastructure allow this growth to happen and new entrepreneurs to succeed in their own business. Life offers the opportunity for us to influence people, make a difference in others lives and through vehicles such as religion or education create more opportunity and good fortune for others one might come in contact with throughout their journey.

Franchising offers the potential to leave a legacy. Great entrepreneurs have come and gone many years ago who’s ideas and words are heard today through successful franchise brands. Life’s goals tend to shift towards leaving a legacy for most towards the end of our lives. We aim to leave an impact, stories and memories with family, friends and connections. The most successful can be seen as statues outside ballparks or at the center of town squares.

With all of these commonalities and seeming logic behind the franchise expansion model, why don’t more businesses turn to franchising as a growth vehicle? Well, we aren’t all great at “life” either. Only businesses that have the right vision, market opportunities and systems can franchise.

For more information on whether your business is ready to start franchising, contact us;
Info@franchisemarketingsystems.com