Whether you are a first-time investor interested in the advantages a franchise provides or a seasoned entrepreneur looking to expand, here are 10 things you should consider before investing in a franchise opportunity.
1. Take Advantage of a Proven System
Part of what makes a franchise so inviting is the fact you are buying into a proven system. That means all of the work that goes into establishing a profitable business has already been done, eliminating the guesswork and pitfalls common to start-up businesses. In addition, franchising provides leadership and support along with brand recognition – things that could take you years to learn and establish on your own.
2. Have Instant Name RecognitionIf you buy into a franchise system that is already established, the big advantage to you is in the brand recognition. Your customers are going to be more comfortable purchasing items from a familiar brand they already know and trust than from an unknown startup.
3. Get Up and Running QuicklyOne of the key advantages of a franchise system is that you are buying into a well-designed system that has done all of the groundwork for you. Implementing a turnkey system, no time is wasted in getting your business up and running.
4. Increase Chances of SuccessA typical startup is burdened with a multitude of hurdles that have already been overcome by a franchise system. The power of an established franchise system is in the quick start up and the proven system for you to follow to put you on the path to success.
5. Find Financing More EasilyA franchise opportunity has an established history, so lenders are generally more eager to finance a franchise purchase over an unknown startup. Banks and other lenders view buying into a franchise as lower risk. Because of the systems in place, lenders feel there is less risk of default and are more likely to loan money on that premise. In addition, some franchise systems offer in-house financing and/or leasing options.
6. Get the Necessary Training and SupportAll of the credible franchise companies offer a training program. This generally involves a combination of training at the corporate office as well as at the franchise location. This is the franchisee’s opportunity to learn exactly how to operate a successful business, following the franchise system. Hands-on training eliminates many of the common mistakes and problems associated with opening a business. In addition to this, the franchisor should offer ongoing support to address any future questions or problems.
7. Tap in to Effective MarketingThe franchisor typically provides professional marketing materials for franchisees to use to promote their business. This expense is usually covered in something called the Brand or Advertising Fund. Exactly how marketing is handled, what is included, and what is required from the franchisee will vary from franchise to franchise, but this service is a big advantage and a real time saver.
8. Get an Exclusive TerritoryMost franchising opportunities offer an exclusive territory to franchisees. This means there are only a certain number of franchises allowed to be sold in a certain geographical region. This protects the franchisee’s territory and ability to make money.
9. Increase Business with Multiple TerritoriesA unique advantage of franchising is that a franchisee can grow within the system. Ownership of a successful single-unit franchise can lead to becoming a multi-unit franchise owner, building on that original success.
10. Become Part of a Franchising Family
In addition to the support from corporate, an established franchise system is made up of like-minded entrepreneurs who are willing and able to offer advice and support to their fellow franchisees. And, because franchisors will typically hold events throughout the year, many of the franchisees have the opportunity to really get to know one another and form very tight working relationships and friendships.
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Ready to learn all the reasons why becoming a Delta Disaster Services® franchisee is the right move for you? Pick up the phone and give us a call. Shoot us an email. Let us give you the answers you are looking for to get started on the Delta Disaster Services® path to success.