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In Business For Yourself
A franchise is a license granted by a company that allows you to operate essentially what is a branch office of the parent organization.  For people who are interested in going into business for themselves, this is a common path they take to achieve financial prosperity.  While one can always start a business from scratch, owning a franchise provides a tremendous number of benefits with relatively little downside.  If you have the desire to own a franchise, here are some of the reasons why it can be a great way to reach your fiscal goals.

• Proven Business Strategy
  Building a business from the ground up involves a lot of effort and struggle.  Creating a sound business plan is simply the first of many difficult steps to take.  By owning a franchise, you are following in the footsteps of dozens (if not hundreds) of other proprietors who have gone before you.  The parent company and its franchisees have already established that there is a viable and profitable business to be run, with products or services in demand.  You do not need to establish a market – one already exists.
• Brand Recognition
  If you own a franchise in the restaurant industry, chances are that everyone in your area knows what kind of food you serve, and they have probably eaten at a similar restaurant across town or in distant markets.  If you open your own restaurant, it will take you some time to build up clientele that knows what is on your menu and appreciates the quality of the food you serve.  The same is true by comparing any sort of franchise operation with its “generic” equivalent – auto lube shop, carpet cleaning service, or daycare center.
• Minimized Risk
  Tying elements of the two aforementioned benefits together creates this third category, a lowered risk to anyone owning a franchise.  In a society where a large number of new businesses fail within their first five years of operation, the vast majority of companies that do not succeed are NOT franchises.  Some studies show that franchises succeed at a rate approaching 90 percent.
• Mass Purchasing Power
  No matter what kind of franchise you choose to own, you will likely require some level of inventory or supplies.  Restaurants need food, auto lube shops need oil filters and petroleum products, and daycare centers need diapers – just to name a few of the basics.  While most corporations have some fairly strict rules when it comes to the items their partners must stock – that’s one of the ways they make sure that the hamburger a Vermont franchisee serves is the same as one served by a franchisee in Tennessee – there are some pretty serious volume discounts available as well.  Because of the huge buying power of companies that have thousands of franchises, they have literally revolutionized the way certain products are created, packaged, and sold.
• Training Programs
  A business owner who strikes out on his or her own will often struggle to find the right way to do certain things – which accounting system to use, how to keep track of inventory, where to create price breaks on volume purchases, how to reach more customers with effective advertising, and so on.  A franchisee never has to worry about these things.  Every franchisor has an extensive training program for its owner / operators, and some programs even extend to the people you hire to work for you.  A well-trained franchisee is a successful franchisee, and successful franchise owners are terrific salespeople when it comes to convincing others to buy into the system.
• Broad-Based Marketing Campaigns
  Collective purchasing power is not only applicable to inventory and supplies.  Buying advertising in bulk can save the individual franchisee a great deal of money over time.  Also, some of the royalties that every franchise owner pays goes toward a national or regional campaign.  This builds name recognition and drives customers directly to you without having to lift a finger or rack your brain to figure out a clever marketing ploy on your own.

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