In my over three decades of experience as a franchise consultant, I am often asked “Why do people buy franchises?” This is a very important question when you franchise your business. After all, if you do not understand why people buy franchises, how can you motivate them to purchase your franchise opportunity?
In my experience, here are the top ten reasons people invest in franchises:
- Create a career for themselves: Many franchisees invest in a franchise in order to establish a fulfilling occupation for themselves;
- Secure their futures: often, people purchase franchises because they are afraid of being laid off or downsized or they do not fully trust their current employer’s ability or willingness to take care of them;
- Have more control over their lives: many prospective franchisees are simply fed up with having to answer to someone else. They want the freedom of owning their own business, but the thought of being entirely on their own frightens many people;
- Draw on the franchisor’s support to launch the business: most Franchisors offer substantial support to their franchisees in order to open their locations, including pre-opening training for the franchisee and applicable staff, site approval, and guidance regarding lease negotiations, purchasing, design and construction;
- Receive the Franchisor’s assistance in operating the business: This support can very well make the difference between success and failure. It can include Operations Manuals, marketing, purchasing programs, field support, technical assistance, on-going training, etc.;
- Enjoy better chances for success: because franchises offer a proven business model and support, franchises often offer a higher likelihood of success than an independent start-up;
- Be part of a concept they believe in: Many people purchasing franchises are first customers of that enterprise. They are familiar with the business model and loyal to it;
- Can often be easier to obtain financing: many banks and other lending institutions are more likely to approve financing for franchises, because franchises are more likely to succeed;
- Earn more money: In many cases, franchise ownership can result in higher income; and
- Build equity in an asset: a franchise has an on-going value. It can be sold or passed along to family members.
Of course, people purchase franchises for different reasons. Some people need a quarter of a million dollars a year to cover their expenses, while other are satisfied with a fifth of that amount.
Some franchisees are attracted by a home-based or service business, while others want to own a brick-and-mortar location. Many people want restaurant franchises, because they feel more comfortable in that arena.
Others may want a business that allows them to travel or work with animals. It will tremendously enhance your franchise sales if you take the time to understand the benefits of your particular franchise program and what attracts potential franchisees to it.
Thinking About Franchising?
NFA Franchise Consultants have the experience to help businesses franchise. Just watch and listen to some of our client case studies and video testimonials. We can HELP YOU and it doesn’t cost anything to call and talk to us!
So, if you are still asking the “should I franchise my business” question over and over with no clear direction, give us a call at (706) 356-5637, or contact us through our online form. We look forward to helping you take your business to the next level and beyond.