The reason for purchasing a franchise versus starting out on your own is simple:
Franchised businesses are more successful.
In Michael Gerber’s book E-Myth, he reports that 80% of all start-up businesses fail. In contrast, according to a study by the US Commercial Service, 90% of franchised businesses are still in operation after five year.
Let’s be clear starting a business is a risk, however you can minimise that risk and give yourself a better chance for success by choosing to invest in a franchise system versus starting out on your own.
If you are exploring a business opportunity for the first time or you are an experienced business owner the benefits of a franchise system are hard to dispute:
A quality franchise business provides:
- A proven methodology for success.
- An experienced management team.
- Complete initial and on-going training and support.
- Start-up support.
- Supplier/ buying power partnerships.
- Experience, you benefit from their mistakes.
- Substantial investment in brand development.
- A network of likeminded business owners that you can learn from.
- Co-ordinated marketing assistance.