Each year, thousands of people across Canada invest in franchise opportunities for a multitude of personal, financial, and vocational reasons. Here are 10 of the many benefits that becoming a franchisee can bring.
1. No ‘reinvention of the wheel’ required
When you invest in a franchise, you gain access to and use of its operations systems, products/services, logos, and more. With a franchise, you have the road map to recreate the brand’s success at your location – providing you follow it to the letter.
2. Trademarks and patents
A good franchisor will have already secured the trademarks and patents related to its brand. Franchisees are then licensed to use the franchise’s branding, trademarks and proprietary products, services, recipes, etc. This can save you time and money during the start-up process.
3. Territory rights
In most cases as a franchisee, you will be awarded an exclusive territory, giving you exclusive rights to offer your product or service within your designated area. The territory is designed to reduce competition and can vary in size and scope.
4. Start-up costs estimated
With a franchise, others have gone before you and can provide you with an example of what to expect in terms of start-up costs. Though each franchisee’s experience can vary, your franchisor should be able to provide you with start-up cost estimates that are specific to the system.
5. Franchisor support and training
As a franchise system requires consistency in quality and service from location to location, most systems will train new franchisees on the basics of operating their location
6. Consumer awareness
Though the business may be new to the area, potential customers may already be familiar with the brand, whether through other locations or through its regional or national marketing.
7. Strength in numbers
Another advantage of a franchise system is working with suppliers and other merchants that have already been vetted for quality, pricing, reliability and consistency.
8. Peer network and support
If you’re experiencing an issue or challenge with your business, chances are there are other franchisees in your system who have encountered the same or a similar issue and will have firsthand advice for overcoming it.
9. Research and development
Through the franchisor, franchisees can be kept up-to-date on business trends and consumer tastes and behaviours. They can also benefit from their system’s research and development initiatives for things such as new products and services, technology and marketing.
10. Small business ownership
In addition to the reasons already mentioned, don’t forget that you’ll also be a small business owner, operating your own business with the brand and support of the franchisor backing you up. As the saying goes, in franchising you’re in business for yourself, but not by yourself.
Adapted from the November/December 2014 issue of FranchiseCanada. Check out the July/August 2016 issue of FranchiseCanada, on newsstands now, or you can order your subscription by calling 1-800-665-4232 ext. 224.