Merchant Advisors

The Top 10 Reasons to Buy a Franchise

In today's market of franchises, there are hundreds of good reasons that you should invest in one.   But your decision to do so should be based on your lifestyle and financial benefits that can come along with a franchise, not just because it is the popular thing to do.  It does not matter if you are thinking about a home based, retail, service, fast food, or large scale restaurant franchise, it is one of the safest business concepts that you can invest your money into.

Here are the top 10 reasons that you should purchase a franchise:

1. A franchise is a springboard to entrepreneurship – When you purchase a franchise, you almost instantly become an entrepreneur.  This limits those barriers that first time business owners face every day since you are really purchasing a “business in a box”.  Franchises are turnkey operations that have been tried and tested by a proven team of industry experts, and they work. So, you simply pay the fees and costs that are involved in starting one up, and then you follow their training program and your interest in a franchise is satisfied.

2. A franchise is a safe investment decision – Since the failure rates of franchises are extremely lower than those of independent businesses, they are a safer investment since there is an infrastructure in place to help support it.  The franchisor will continue to add new and more effective methods of improving their franchise, and the larger the system is, the more brand recognition there will be throughout the market.  This only increases your revenue since more people have heard of your franchise.

3. A franchise provides an enhanced lifestyle for you – Many people who invest in franchises find that it allows them to improve their lifestyles in a way that normal employment just can not offer them.  The main plus to franchise ownership is that the opportunity to spend more time with your family is there, plus the better income.  Franchisees have an awesome sense of pride, financial stability, accomplishment, and personal success when they are members of a successful franchise concept.

4. A franchise offers governmental protection – Since franchises are a regulated industry that is overseen by several federal organizations in the United States and in Canada.  There are 23 key areas that each franchisor is required to disclose to any prospect so that they can make an informed decision about the franchise opportunity.  This helps protect you, so that you do not make a decision to invest a lot of money in a franchise that will not provide you any revenue.

5. A franchise offers quick access to financing – Since there are many organizations out there, like the SBA, who offer secured franchise funding and have streamlined the whole process, you will find that getting the funding for a franchise will be faster and easier than you ever thought.  For those interested in franchise funding, you can check with your local SBA office for the information and forms that you will need to file.  These offices will be able to offer all types of discounts and help for small business owners, especially for minority, women, or veteran owned businesses.

6. A franchise offers ongoing training and support – The beginning training programs offered for franchisers is one of the key selling points which all investors should examine completely before they sign any type of agreement.  This type of initial training should have a head office training session (either in the office, online, or through some other form), and should include an operation manual.  Ongoing training for franchisers should always be available to you, which can also help you make your business even stronger.

7. A franchise system is an opportunity for growth even within the franchises – Any franchisee who is successful with their store will usually be rewarded with advancement, incentives, or other types of rewards from the main office.  This can be a great springboard for better financial stability, great incentives, and even higher paying job positions for those who are very successful with their investment.

8. A franchise offers a wide variety of investment levels – You do not have to be extremely wealthy to purchase a franchise or have a ton of net worth to qualify for one.  You can actually find franchise opportunities for as little as a couple thousand dollars that can be operated from home or can be done on a part-time basis.  One of the best ways to start your search is at one of the franchise directories that are available online that will give you a list of thousands of different opportunities, in all types of categories and investment levels to find the one(s) that is right for you.

9. A franchise offers great professional development – When you become a franchise owner, you do not lower your entrepreneurial role at all.  Most franchises offer a progressive system that will allow owners access to professional development classes and leadership seminars, business ownership coaching, and a wealth of other advancement opportunities, classes, seminars, and more.  With the support of a larger parent company right at your fingertips, franchise owners are business owners that have a great advantage over other small business owners.

10. A franchiser can buy into a start-up franchise system – While this can offer a higher financial risk and offer more challenges, the long term rewards can be exceptional.  This makes start-up franchise systems a great way to invest your money.  You can help to pioneer the ideas, innovations, and dynamics that can help to shape the franchise and still have the assistance of the parent company.  These new franchises usually offer it's starter group great investment opportunities and incentives, like a reduced franchise fee, to gain their investment.

 

And there you have it – the top ten reasons that you should buy a franchise.  While there are a ton of great reasons that you should invest your money in a franchise, you should do plenty of homework into franchises to see if this is the right type of investment for you.  Make sure that you look into one of the many great franchise directories online to see which ones fit into your investment range, and which one would interest you as a business owner.