Here are some advantages of buying a franchise:
Owning a business with an experienced business partner
Franchising is often described as a business format where you are 'in business for yourself, but not by yourself'. Franchise owners are able to own their own businesses, manage it daily and benefit from profitable trading without having to do any product development or national branding awareness. The franchisor has a dedicated marketing strategy and is responsible for all national marketing through the collective marketing fund, which ultimately benefits their entire franchise network. This could include television and radio advertisements, social media campaigns and billboards, which are often unaffordable for a standalone nonfranchised store. In addition, product development, for a restaurant, for instance, is managed by the franchisor. Various menu options and food technology will be tried and tested, and the exact profitability margins will be calculated on all products before they are released to the franchise network.
Supplier relationships and bulk buying power
Most successful franchises either have good relationships with external suppliers or own their suppliers through vertical integration. This ensures that franchisors are able to negotiate bulk purchase deals (based on their entire network) with their preferred suppliers to the benefit of their franchisees. These negotiations may include the additional benefits of a dedicated payment system, logistical arrangements and distribution of stock to the franchisee stores, which further assist franchisees.
Easier access to finance
この記事は Your Business の December 2019/January 2020 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
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この記事は Your Business の December 2019/January 2020 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
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