Setting up your own business can be a daunting task; just three in ten start-ups make it to the five year mark without failing.

One solution, which gives the opportunity to run your own business but mitigate the risk, is by taking on a franchise. Taking on a franchise from a well-known allows entrepreneurs to start a business and deal with the day-to-day activities that this involves, without having to start from scratch – and to this there are several benefits.

Brand name and reputation

Buying a franchise alleviates the stress of building a brand name and attracting customers – a pre-built reputation, built up over years or decades, comes as part of the package. If you’re thinking about starting your own company start by doing research on what it takes to create and secure a brand – it isn’t cheap. 

Advertising isn’t a problem – national and regional campaigns are the priority of head office, alongside customer lead generation through websites and centralized call centers.

All in all, starting a business that people are already familiar with is a much easier task.

Ease of buying a franchise

Initially when starting a business there will always be difficulties, as you figure out what you need and how to run it in the most cost-efficient manner. All this takes both time and money – and can be eliminated if you decide to buy a franchise. A franchised business provides a “plug and play” venture, already fine-tuned and providing you with the details you need to get started – as well as training and on-going support.

Speed of buying a franchise

Alongside ease, a franchised business also brings speed. Signing up franchisor who’s done this hundreds of times before and being handed a shopping list of exactly what you need to set up shop means you can open the business, and get money rolling in much more quickly.

Financing buying a franchise

While most franchisors do not supply financing, many have relationships with lenders who will view that brand’s referrals more favourably than an independent business owner just starting out. This usually means it is easier to secure finance, as a franchise has a more reliable track history.

And what are the benefits for the franchisor?

Having enough Capital

One of the biggest challenges facing small businesses is finding capital needed to grow; franchising your business supplies allows companies to grow using the resources of others.

Motivated management

There is no need to worry about the motivation of your workforce when opening another branch, franchisees that run the business will have invested their money ensuring long-term commitment to the success of the business. Those running it will have a stake in the business, making them more motivated than if you had purely hired a manager.