Understanding why people decide to buy a franchise business instead of launching an independent business is a common question the franchise consultants like me receive from candidates.
Frankly, you may be better suited to just start your own business. Almost all of the more than 3,000 franchise brands available today began as an independent startup. If you’re someone with a strong entrepreneurial spirit who wants to create a concept on your own, go for it!
However, the answer to why many people buy a franchise instead of starting their own business is to mitigate risk. Lots of people dream of the day that they can own a small business, but not everyone has the risk tolerance to want to launch a concept from scratch. Franchise businesses are a nice alternative to a startup for several reasons.
Franchise businesses offer proven models of success, meaning they’ve already taken the risks and made the mistakes that come with launching a concept. When you buy a franchise, you’re buying all of that experience and knowledge the franchisor has accumulated over the years to craft a business model that has a track record of success. Contrast that with launching a startup, where every mistake to be made is your own.
Beyond a proven model of success, franchise businesses offer unparalleled levels of support. That means there are teams of people prepared to help their franchise owners succeed every day from the time they are awarded a franchise. Franchise systems have support teams to help franchisees secure real estate, build out their stores, train owners and staff, marketing support, 24-hour help lines, intranet systems, supplier relationships, peer support from fellow franchise owners, ongoing training opportunities, seminars, and more.
Brand recognition is another reason why aspiring entrepreneurs will choose to buy a franchise instead of venturing out on their own. There are millions of small businesses trying to establish a name for themselves. Elevating a brand above the din is no easy task. With a franchise, whether it’s an established or emerging brand, there is built-in brand recognition offering customers a sense of comfort and familiarity with the goods and services you have to offer.
So, are you the kind of person who should buy a franchise, or are you better suited to launch your own independent business? One way to find out is to give me a call. As a franchise consultant for more than two decades, I’ve helped thousands of people determine whether or not a franchise business is right for them.
You can call me at 919.846.7111, email me at firstname.lastname@example.org or click the button below to schedule an appointment. There is never a cost to engage my services to see if franchising is right for you.