Despite the legal and financial risks involved, buying a franchise can be a profitable investment. With thorough research and planning, consistent effort, and some good luck, it is certainly possible to succeed as a franchisee.
While we typically focus on the risks involved with franchise ownership on our blog (we are franchise lawyers, after all), the potential benefits of owning a franchise deserve acknowledgement as well. Under the right circumstances, here are seven potential benefits of franchise ownership:
1. Recognizable Brand
Gaining access to a recognizable brand is one of the primary reasons why people choose to buy a franchise instead of starting an independent business. Opening your business under a name that is already well-known and respected can jumpstart your path to profitability.
2. Tested Business System
Buying a franchise can afford access to a business system that has been tested and proven not just by the franchisor, but potentially by hundreds or thousands of franchisees across the country and around the world. Instead of spending the time (and money) to figure out what works and what doesn’t, you can feel confident knowing that the franchisor has already done this for you.
3. Franchisor Support
A franchisor is only as successful as its franchisees. As a result, franchisors have a vested interest in providing their franchisees with as much support as possible. From launching your grand opening advertising campaign to overcoming unexpected hurdles months or years down the line, a good franchisor will be there for you when you need it.
4. Research and Development
Building apps, analyzing consumer trends, and developing new product lines are all activities that require a substantial investment. While these activities may not be feasible for you as a small retail business owner, a large franchisor will have the funds and financial incentive to invest in research and development.
If your marketing fund contributions are put to good use, they can dramatically increase your franchise’s exposure. From regional or national television commercials to geo-targeted online marketing, your franchisor’s marketing personnel should be able to use their expertise to help grow your franchise’s profile.
6. Franchisee Groups and Associations
As a franchisee, you can benefit from strength in numbers by joining a franchisee group or association. You can learn from other franchisees’ past experience; and, if you have an issue with your franchisor, you can band together to effect change.
A brand that is attractive to potential customers will also be attractive to potential buyers. At some point, you may want to sell your business, and having a franchise to transfer may make it easier to find a willing purchaser.
Contact the Goldstein Law Firm
Of course, all of these are potential benefits, and the benefits of franchise ownership will vary greatly from one system to the next. All of these potential benefits carry attendant risks as well. If you are thinking about buying a franchise and would like more information, please call 202-293-3947 or contact us online to inquire about our fixed-fee franchise business review services.