6 Reasons Why Franchising Your Key to Small Business Success

6 Reasons Why Franchising Key to Business Success | Franchise Coach

If you’re reading this article, it’s probably because you’ve considered business ownership as a way to achieve your career, lifestyle, and financial goals. But have you thought about taking that one step further – becoming a franchisee?

There are numerous advantages to franchise ownership over creating a business from scratch, which explains why so many people investigate franchising as a route to business ownership.

Here are the 6 ways franchising can help you achieve success as a business owner.

1. Franchising or a ready-made business will not require your time and effort

Compared to starting a business from scratch, you will have to create, research, and test a new business idea.

In the U.S. today there are thousands of franchised businesses. Since the whole point of franchising is to create a successful business model for the delivery of a product or service and then find a way to duplicate the results.

Buying a franchise is like the Disney FASTPASS. You can go to the head of the line by buying a franchise with a tested and proven business model, an existing customer base, and, in many cases, a turnkey package for getting the business ready to open to the public.

But, as they say in infomercials, that’s not all! A solid franchise company will also provide its franchisees with all the training they need to set up and run the business. They will provide ongoing help and support, marketing materials, operations manuals, and opportunities to meet with other franchisees.

Depending on the type of business, a franchisee may supply a corporate call center, customized computer programs, or field support personnel to help you achieve your goals. Being a part of a strong franchise system as opposed to being an individual business owner means that you have an entire organization invested in your success.

2. Becoming a franchisee will allow you to reduce your risk as a new business owner.

It’s well known that creating a business is a risky undertaking. However, there is a way to reduce that risk.

You can give up the total freedom associated with being an “independent owner” by becoming part of a group of people committed to building a brand and dominating markets using a common, proven operating system. You don’t have to guess about the most effective way to build your business; there is a proven system to use.

How much does buying a franchise reduce your risk of failure? According to the U.S. Department of Commerce, franchise businesses are exponentially more likely to succeed than individual new start-ups, particularly if you look at the figures over a five or seven-year period.

According to Department of Commerce figures, after seven years 91% of new franchises are still in business, as compared to only 20% of individual new start-up businesses.

If you don’t like statistics, let’s make this simple: owning a franchise is like having a roof over your head in a thunderstorm. Opening your own business is like having an umbrella.

3. Expect lower costs as a franchisee due to group buying power.

Whether your franchise provides a service or a product, you will probably benefit from a purchasing contract procured by the franchisor that provides you with steep discounts due to the heavy volume purchased.

These discounts may apply to the ingredients for a food product, the equipment to make the product, delivery vans, store fixtures, office supplies, or any number of other items.

Bonus read: Are Franchises Can Be Bought, Sold, Or Awarded?

4. Franchisees have the power of national brand recognition.

There’s just no substitute for great marketing. You can make the world’s best space-age sprocket but if people don’t know about it, they won’t buy it. And here’s where franchising truly shines: by using a national marketing fund the franchisor can combine monies from the franchisees and buy superior advertising to create national brand awareness.

This national marketing fund is also used to create more professional advertising that can be utilized by the individual franchisees in their local markets.

How important is this national advertising?

When Yum! Brands Inc., a parent company to Taco Bell, advertised their new menu item, fiesta platters, during the 2008 Super Bowl, they had 100,901 million viewers. That’s power in numbers!

5. Business ownership is a way to take back control of your life.

One of the reasons many people choose to become business owners is because of the desire to get control of their lives back from a corporate America that takes and takes and takes – without giving much back.

This produces a steady stream of potential franchise investors who have a desire to reduce business travel, job-related stress, and the number of hours they work per week. They want to find businesses with downtimes at certain points in the year so they can take more time off with their families or for other leisure activities.

The advantage of franchising for these people is that there are so many options to choose from that they are usually able to find an opportunity that matches their desires.

This is not to say that franchise ownership is a cakewalk. It does require hard work. However, unlike a job in corporate America, as your own boss, you can make decisions that will allow you to enjoy the fruits of your labor.

You can be a hands-on franchisee or hire a manager to let you run the business remotely. Without a clock to punch, you can make time for yourself and your family.

Finally, when your business is successful, you can pay yourself what you are worth!

6. What are your wealth creation goals?

And, speaking of wealth, how does your current job help you with your financial goals? Have you had a raise lately? Is your income keeping pace with inflation?

Many prospective franchisees have figured out that though their work efforts may be creating a significant amount of wealth for their company, they are not necessarily sharing an equitable portion of that wealth.

The ability to create a good income is the reason many people initially look at franchising. If you choose the right business and are willing to follow the franchisor’s system and put in the necessary hard work, the rewards of your work will be yours.

As a franchisee, you will also be able to sell the business down the road, which can be an additional source of income.

Is it all blue skies?

To be fair, franchising is not the perfect business ownership vehicle for everyone. To be successful, a franchisee must be willing to follow the franchisor’s system.

If you are someone who likes to tinker with the business and make changes, you will spend too much time “fixing” instead of attracting customers. Butting heads with the franchisor will not make you a successful franchisee.

Additionally, an important part of any franchise system is that the franchisor will collect royalty payments from each franchisee in return for the training, support, and use of the brand. Most franchisors also collect advertising fees, as mentioned above, for use in national branding and marketing efforts.

If you start your own business or buy a business opportunity, you probably won’t be making these payments (or getting the benefits!) so this is an important consideration.


Before you even begin to research franchise opportunities, you must identify all of your needs and motivations for looking into business ownership. Make a list of what you hope to accomplish as a franchise owner and this will help you when it comes time to make your final decision for this investment.

Success in franchising takes skill, effort, and time but if you are willing to invest these resources, your reward may be that you finally achieve the career you’ve always dreamed of.

You may also read: “Analyzing Franchise Growth in 4 Effective Ways”


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