You might be surprised at how many of the businesses you patronize are franchise businesses. Everything from the restaurants you regularly visit to tax preparation services you count on every year are most likely franchises. The reason they are so prominent is because buying a franchise for sale makes sense for business owners. Instead of having to navigate through the many challenges of starting from scratch, franchise owners buy into an already established, branded system, often for less than what it would cost to begin from square one.
Pros and Cons of Buying a Franchise for Sale: Advertising
As any entrepreneur knows, the cost of quality advertising is astronomical – but that’s because it works. Print, radio, and television advertising not only alert potential customers to your presence, but also lend credibility to your business. Statistically speaking, people are more likely to buy a box of cereal or patronize a car repair shop that they’ve heard advertised rather than one they haven’t. One of the reasons that new businesses go under or fail to grow as anticipated is due to a lack of advertising dollars.
Perhaps the greatest benefit of buying a franchise for sale is that owners are not alone in building the business. The corporate office and other franchise owners all have a vested interest in attracting business and building the brand through advertising. With a well organized corporate office and by pooling advertising money, the high cost of advertising works in favor of franchise owners rather than against them. With the resources of a larger team, franchisers can afford to advertise while other area local businesses can’t.
There really is no downside to buying a franchise for sale in terms of the advertising benefits unless the corporate office has a poor plan for advertising. For this reason, it is critical to do research about a potential franchise for sale before jumping in. One of the main considerations of buying a franchise for sale should be the company’s plan for advertising and how your location fits in.
Pros and Cons of Buying a Franchise for Sale: Systems and Processes
It takes years of trial and error for a business to develop effective systems and processes. These processes can include even the finest details like how to answer the phone, how to organize the store, and the type of clothing employees must wear. Most well established franchises for sale require the owner to adhere to these systems and processes to maintain continuity between locations and because they have proven to be profitable.
For many entrepreneurs, having this well established set of business rules that comes prepackaged with a franchise for sale is a great benefit. This means less time wasted and money spent on trial and error to find what works. It can take many years and a great deal of money to perfect a set of processes that yields the highest response from customers.
However, many entrepreneurs don’t enjoy working within strict guidelines. For them, buying a franchise for sale equates to buying a job and not starting a business. For the entrepreneur that is in business to forge new paths, buying a franchise for sale may not be the ideal solution. The tradeoff for franchise owners sticking to regimented systems and processes is the safety and security of proven methods.
One of the great benefits of owning a franchise is that lots of people are on your team striving toward a common goal. A good franchise for sale has an entire corporate management team working hard to ensure the success of the franchise. When doing your research about a franchise for sale, take extra care to look into the support structure offered by the corporate office and the way in which various franchise owners work together.
Not every franchise for sale is a good franchise opportunity. When you become a franchise owner, you take on any potential business problems of the parent company. If the parent company has management troubles, those troubles will no doubt trickle down into your establishment. However, once you’ve done your research, explored the possibilities, and found a great franchise for sale, you’re well on your way to a profitable and fulfilling future.