Advantages of a Franchise Business
Author: Matthew Anderson
Several years before, if one wanted to start his own business, his natural course of action would be to do it on his own, depending largely
on his business instincts, limited know-how, and observation of the market. The advent of franchising, however, brought a big change in
business. Many have since become rich because of franchising. Franchising has indeed many advantages.
You Own the Business â€“ A franchise is a duplicate of a successful business concept. The franchisee owns the outlet, therefore, he
hires his own employees and oversees the management its day-to-day operations. He has high stakes in the business because his
money is involved.
Ready Market â€“ When one buys a franchise, he is buying an established concept that has a good record of accomplishment. The
franchisee is allowed the use of the companyâ€™s trademark and brand name. Because of this, the company is, in effect, giving the
franchisee a license to market its products carrying a brand that is already familiar with the consumers. Many popular franchises have
instant brand-name recognition and have created a loyal following among consumers. Therefore, the franchisee is getting into a
business that already has a ready market.
Continuous Support from Franchisor â€“ Although running his own business, the franchisee can tap the services of the parent company
anytime he needs assistance. The services of the head office organization are available to him, too, whenever he needs help.
Furthermore, many companies have field operations personnel whom the franchisor can call on to help him deal with any problem he
may encounter in the operation of the business. Most franchises being offered nowadays are turnkey operations. Upon the signing of the
franchise agreement and payment of the franchise fee, the franchisee receives the equipment and supplies required in running the
business. Furthermore, the franchisor provides assistance in identifying a good business location for the new outlet. The