Buying a Franchise
If you want to be a business owner, but not wanting to take on all the risks involved in starting a business from scratch, buying a franchise can be a great alternative. Owning a franchise is not for everyone but here are the main reasons why you should consider buying a franchise.
Advantages of Buying a Franchise
A successful franchise company has developed a tried and true method of doing business that produces favorable results.
Franchises are required to provide potential buyers with information and disclosures so you can verify their claims with existing franchise owners before you make a decision to buy.
Franchise companies have already built up their brand on a regional and/or national level that have value to consumers.
The best franchise companies have training programs for new owners so you know how to run the business.
Your success as a franchise owner is vital to the success of the franchise company. Dedicated franchise staff provides ongoing operation support so you are not alone in building or running your business. Experienced
professionals are there to help you through rough spots and provide ideas for increasing profit margins.
Franchises provide owners with marketing tools and strategies that have proven successful. Their marketing staff helps you with marketing and budgeting your grand opening as well.
If your franchise purchase requires that you build a new facility, franchise staff helps you find the right location and help you negotiate the best deal possible for purchase or lease of the land as well as construction costs.
One wonderful benefit of buying a franchise is that the franchise company helps owners with building design and layout, finding the right contractors and make sure you get the right furniture and equipment to maximize the efficiency of your initial investment.
Franchise owners can take advantage of the buying power of the entire system in order to negotiate the best prices for supplies, inventory, uniforms, equipment and so on.
Probably the biggest benefit to buying a franchise is reduced risk. Buying or starting any business is risky, but buying a franchise comes with fewer of those risks. As long as you do your due diligence, you can be fairly certain that buying a franchise is a wise investment.
As stated above, buying a franchise is not for everyone. Your are in business for yourself but not by yourself. Owning a franchise is not without its challenges. Here are some of those challenges that you should be aware of during the decision making process.
Franchise owners are not 100% independent as they are required to operate their business according to the procedures and restrictions in the franchise agreement. Restrictions typically include the products or
services that can be offered, pricing and territory.
Franchise owners do have to pay fees to the franchise company for use of their name, trademarks and logos, royalties and your share of advertising fees. Those television and radio commercials are paid for by
Franchise owners must have the ability or staff to adequately manage their business. A damaged image from a poorly performing franchise can affect the franchise as a whole and ultimately, your business as
The terms of a franchise agreement or contract are often limited and the franchise owner may have no say about the terms of termination. In the case of a poorly performing business, the franchise company will usually have the right to terminate the franchise owner in order to protect the company image.
Florida Business Brokers can help you determine if buying a franchise is the right fit for you.