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Archive for September, 2019

Ten benefits of becoming a franchise owner

Buying a franchise can be a life-changing experience. Make sure it’s a positive and rewarding experience by doing your research before signing a franchise agreement. A properly designed and executed franchise system can be an exceptional method of expansion, but franchise systems that are poorly designed or not well managed are to be avoided. Below are the top 10 reasons to consider if you’re thinking about investing in a franchise.

1 An Existing Franchise Is a Turnkey Business

Many entrepreneurs have the skills to run an existing successful business but don’t have expertise in all it takes to get a business up and running, whether that’s obtaining financing or negotiating lease terms.

Buying an existing franchise in a well-designed system can eliminate much of the hard work: choosing a territory, finding a location, negotiating a lease, finding reliable contractors to complete a build-out on time and on budget, establishing vendor relationships, etc. You may also be able to start a business with trained staff already in place.

However, you still need to do your homework. Aside from the transfer fee, your fees and terms may be substantially different than the sellers.

Proven System in Place

When you buy a franchise, you buy a system – an entire method of doing business. Franchises have an established system in place that you must follow to distribute the franchiser’s products or services using the franchiser’s trade or service marks. Having a proven system already in place eliminates the guesswork and errors a common business owner would normally face.

In addition to exercising some control over franchising operations and the franchisee’s adherence to brand guidelines, the franchiser provides the franchisee with franchising leadership and support.

3 Corporate Image and Brand Awareness

If you buy into a franchise system that is already established, the corporate image and brand awareness is already recognised. Customers are usually more comfortable purchasing items they are familiar with and working with companies they already know and trust.

In the consumer’s mind, a franchiser’s brand equals the company’s reputation. Great franchisers want to ensure that their customers are satisfied every time they shop at a franchised location and that the franchisee delivers on the franchiser’s brand promise.

Higher Likelihood of Success

Buying a franchise is very different from starting a totally new business. Since there is an already established system in place, there is a higher likelihood of success. If you invest in a proven franchise opportunity and follow the system the franchiser has put in place, you should be on your way to running a successful business.

Easier to Obtain Financing

Lenders are usually very comfortable financing the purchase of a franchise because franchises already have a proven track record. Bankers usually look at successful franchise chains as having a lower risk of repayment default and are more likely to loan money based on that premise. In addition, some franchise systems will provide in-house financing and/or leasing options.


Most franchise companies offer a training program that is typically held at their corporate offices, plus additional training that occurs at the actual franchise location before the grand opening. The franchiser will train you to run your franchise the same way their other franchised locations are run. It will ensure that you are running your business efficiently, and will help to eliminate any common mistakes a new business owner usually faces.

Ongoing Support

When you buy a franchise, you have the support of the franchiser and the support of knowing you are part of a growing system. You will always be able to pick up the phone and ask questions of the franchiser or even other franchisees. Established franchisers typically also have field staff who can visit your location to provide coaching and consulting if needed.


The franchiser typically takes care of handling the system marketing; these costs are covered by an Advertising Fund (sometimes called a Brand Fund). The franchisee is also usually required to spend a certain amount on local marketing. The franchiser should have an outline for you to follow, will supply graphics and marketing material templates, and sometimes will have specific vendors for you to use.

Exclusive Territory

When you buy a franchise, you are usually also buying an exclusive territory, or a protected territory, in which to do business. Franchisers only allow a certain amount of franchises to be open within a certain geographical region. You will usually be entitled to a certain area, and no other franchises (within your franchise system) can be open within that area.

10 Own Multiple Locations

Being a part of a franchise can offer you more opportunities to grow within their system. Once you’ve become a successful single-unit franchise owner, you may want to consider the opportunity to expand and become a multi-unit franchise, managing your own fleet.

If you’re interested in joining our growing number of franchisees, come and see us at one of our next events. We’re at Franchise Opportunities Scotland 2019 , Glasgow on Wednesday 12th September, and The National Franchise Exhibition at the NEC, Birmingham on 4th and 5th October!

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