From McDonald’s to Merry Maids, franchise businesses allow new entrepreneurs to open and run a company without having to start from zero. Marketing support and built-in brand awareness and processes ensure that you get up and running, positioned for success. Some of the most commonly asked franchising questions, along with their answers, are outlined below and can help you determine if this business model is right for you.
Is a Franchise Right for Me?
If you want to run your own business, but are not sure of where to start, a turn-key operation like a franchise can help. “With instant brand recognition, strong support and even built-in marketing, a franchise can turn your dreams into reality,” says entrepreneur from Melbourne, Florida, Glenn Sandler.
You have to be willing to conform to the franchise’s stated rules and procedures though; while franchises are an easy way to start, they don’t leave a lot of room for creativity.
What Kinds of Franchises are Available?
Franchises exist in nearly all industries, from the familiar fast-food restaurant model to service businesses that offer home cleaning, hair cutting, and even pet sitting. Opportunities come in all sizes too, so you can start with a big investment or a small one and scale as needed. The franchise that is best for you will be in an industry you will enjoy working in and be one that you can afford to start and run.
Why Do I Need a Franchise at All?
You don’t necessarily need one, but since a franchise already has brand awareness, full business systems and a track record of success in place, it can drastically decrease the amount of time you need to get started. About 80% of all new independent start-ups fail in their first year; purchasing a franchise can help you avoid the pitfalls and challenges that an individual business owner faces when they go it alone.
How Much Money Can I Make?
Franchises vary, and one of the things you’ll need to uncover as you investigate your options is the average amount of profits and revenues a franchise can expect. In some cases, your efforts will impact your revenues, but a franchise disclosure document should give you a good idea of average earnings.
How Can I Finance a Franchise?
Some franchisers offer to finance, while others require you to provide the money you need to get started on your own. Even if the franchise you are considering offers to finance, you may get a better deal elsewhere, so it pays to shop around. SBA loans, investors, your savings, and even a line of credit from your bank can help you secure the funding you need to start.
“A franchise offers an easy way to get started in with an established brand and ensure success, provided you pick the right product and an industry in which you’ll enjoy working,” suggests entrepreneur Glenn Sandler. Learning more about franchising in general and researching specific industries and companies can give you a good idea of what to expect from the process and how successful you could be.
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