Why Buy A Franchise
At FranNet, we provide a wide range of free services that can help you answer the question, “why buy a franchise?” or “Is business ownership for me?” Whether you’re looking to be your own boss or supplement your current income, there are many well-known advantages that make franchising such an attractive option.
When our consultants are asked the question, “why buy a franchise,” risk mitigation is one of the first answers they give. It’s one of the most significant reasons franchise businesses are so appealing to entrepreneurs. While franchise businesses have a very high rate of success, starting a brand new business is very risky – most studies show that more than 90 percent fail within three years. The primary reason the failure rate is so high among start-up businesses is because of the steep learning curve involved with starting a business that doesn’t have an existing blueprint. Franchises have already been through the trial and error necessary to establish the most effective product and marketing mix, and they have trusted names that resonate with the public.
It is also prudent to buy a franchise because the investment can be thoroughly researched before any significant investments are made, which isn’t always the case with a new business startup (non-franchise). No matter how much research you do, it can be very difficult to get a handle on all aspects of the new business. With a franchise, the franchisor has the information and numbers down to a science and can provide a wealth of information. And actually, most of the information about their franchise must be presented to you in the franchise’s Franchise Disclosure Document.
But some of the most important information comes from the existing franchisees, who can provide real answers to many of the questions you’ll have before making such an important decision, such as:
- Do you feel that you were properly trained?
- How long did it take before you broke even?
- What is your annual return on investment?
- How do you feel about the day-to-day duties of the business?
- If you had it to do over, would you do it again?
While the success rate of buying a franchise is attractive to so many prospective franchisees, the potential for growth is perhaps the primary long-term reason people make the initial investment. Nearly one in five franchisees own two or more franchise units. This allows franchisees who are comfortable operating their single unit to apply that expertise to open additional units that greatly increase their chances for more lucrative returns and wealth building.
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Now that you understand some of the advantages franchising has over other forms of entrepreneurship, what’s next? Learn more about how we help you evaluate the right franchise investment for you. Or to get the ball rolling now, complete the Find Your Perfect Franchise request form on the right and a local franchise consulting expert will reach out to you. You can also enter your zip code in the box at the top right side of the page to find a franchise consultant in your community.