theBLOQparq (tBp) is a hub for growth and inspiration, a place where we encourage individuals to find a way forward that feeds their entrepreneurial drive and desire for success. An empowering way to pave your path is through franchise ownership. This road to being your own boss has a list of benefits waiting to be discovered. But first, let’s look at what it means to be a franchisee.
The Franchisor And Franchisee Relationship
Source: Franchise Help, 2020 US of Franchising
The franchisee/franchisor relationship essentially acts as an advisee/advisor relationship. The franchisor is responsible for offering ongoing guidance and support. In return, for the use of the franchise’s existing business trademarks, associated brands, and other proprietary knowledge, the franchisee pays a start-up fee, plus an ongoing percentage of gross revenues to the franchisor.
Curious what brands are worthy of your time and money? Entrepreneur Franchise 500 and Franchise Gator Top 100 are perfect places for you to begin exploring your business ownership options. Some of the top franchises in 2020 included:
- Mathnasium
- The UPS Store
- HomeVestors of America
- Kona Ice
- Sport Clips
The wide array of businesses to choose from guarantees that whatever passion you decide to pursue, there will be a franchise that aligns with it. Once you’ve done your due diligence and you’re ready to take the plunge, buying a franchise can grant you the entrepreneurial lifestyle you’ve always envisioned, barring the big risks. This seems like the perfect time to examine the many benefits of franchise ownership.
1. Pre-launch Support
As a franchisee, pre-launch support perks are endless. Your franchisor will typically provide an impressive amount of guidance when it comes to pre-launch since they have already figured out what works and what does not. You benefit from proof-positive information and can start your business on the right foot. Most franchises offer ongoing support even after you’ve opened your doors. Remember, your success and their success is the same.
2. Brand Recognition
When you operate under a well-known franchise, you can take advantage of the existing, established brand. This means you can redirect your time, energy, and funds into other aspects of your franchise. With ready-made marketing, your newly obtained business will already be known in the marketplace and hopefully have an impressive amount of brand-loyal customers ready and waiting.
Source: Edelman.com
3. Marketing And Advertising
Without a strong marketing strategy and advertising plan, survival in these competitive times is questionable. Luckily, when you start your franchise, you benefit from nationwide and regional advertisement driven by your franchisor. When it comes to cost, the franchise model reigns supreme as fees are usually already incorporated into what the franchisee (you!) has already paid – excluding any local advertisements. Without the worry of marketing budgets and strategies, franchisee life is a little sweeter.
4. Financial Backing
Looking for another significant advantage? Banks and lenders are more willing to invest in an already established company. Not to mention, the costs of opening a franchise are low compared to starting a company from the ground up, meaning franchisees require very little capital to start. You may also want to consider using an online loan company, as they come with their own set of benefits.
5. Ongoing Business Support And Development
Your business will continue to expand with ongoing training and support from your franchisor. You can expect assistance with managing finances, insurance, legal documents, hiring staff, and general administrative support. Going it alone is not an issue when you have the force of a franchise behind you.
6. Higher Rate Of Success
Although there is always a risk associated with any new venture, the failure rate for franchise owners versus a start-up is lower thanks to your ties to a recognized brand. With a franchise, you are buying into and building your entrepreneurial dream on an established and proven system of success. Unknown variables are at a minimum, and your risk for failure reduces along with it.
Source: International Franchise Association
Understanding the limitless possibilities of entrepreneurship is just one-way tBp steps up to support inspired individuals looking to make a change. With an unparalleled vision for creative spaces that foster growth, connection, and community, we act as a catalyst for every dream waiting to come to fruition.