What Are the Benefits of Being a Franchisee Of a Large Company?
Are you considering licensing a franchise from a big company like McDonald’s or Starbucks?
Everywhere you look, youâ€™ll most likely see a franchise thatâ€™s thriving. As such, itâ€™s easy to see why youâ€™re considering the franchising option instead of starting a new business from scratch.
However, buying a franchise from a big company is going to cost you a lot of money in licensing fees and other expenses. But did you know being a franchisee of a large company comes with numerous tangible benefits? Even though the initial cost is high, the return on investment will be worth it.
Read on to learn the benefits youâ€™ll enjoy.
If youâ€™ve built a business from scratch, you know branding is hard work. It takes 5-7 impressions for a person to memorize a brand, and thatâ€™s if your branding strategy is super-effective.
When you buy a franchise from a large company, you donâ€™t have to worry about branding. No, seriously. Just imagine youâ€™ve started a Starbucks franchise. Do you need to put in any more branding effort? Almost everyone knows Starbucks and what itâ€™s all about.
If thereâ€™s anything you need to know about brand recognition is that it drives sales. This means you wonâ€™t need to spend as much money on marketing and advertising as you would when you have a franchise without good brand recognition.
Low Chance of Failure
The Starbucks franchise that has been in your neighborhood has been there since you can remember, right? What does that tell you about the failure rate of the franchise?
This isnâ€™t to say that franchises donâ€™t fail. In fact, the failure rate for franchises is just as bad as the failure rate for traditional businesses. However, when you buy a franchise from a large company with a long record of profitability, itâ€™s unlikely that the franchise will fail.
A low chance of failure definitely gives you peace of mind, but it doesnâ€™t mean you take your hands off the deck. Any business requires hard work and dedication.
Professional Business Assistance
One of the biggest benefits of franchising is you get professional business assistance from the franchiser. However, the level of assistance you get varies from franchiser to franchiser.
When you buy a franchise from a big company, you can expect to get top-notch business assistance, encompassing sales and marketing, business management, branding, and supplies management. Large franchisers donâ€™t want their franchisees to fail, largely because a failed franchise can affect the entire brand negatively.
Even if youâ€™re a seasoned entrepreneur with a record of growing successful businesses from scratch, thereâ€™s no doubt youâ€™ll appreciate the business assistance a franchiser will give you. Couple this assistance with the already low chance of failure and you can easily build a highly profitable franchise.
Being a Franchisee of a Large Company Is a Smart Move
Being a franchisee of a large company is every entrepreneur’s dream. Although the high licensing fees can be a hindrance, you stand to gain several benefits. From great brand recognition to professional business assistance, you have every reason to buy a franchise from a large company.
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