This lesson is part of our free Franchise 101 course.
There are plenty of approaches to setting up your own business, and franchising might not be the only one you’re considering. After all, it involves jumping through some hoops that other businesses don’t need.
But there are significant benefits to franchising too, reasons why it might make setting up your business easier. Those start with the fact that franchising can save you time and money.
What You Get
At its most basic, a franchise grants you the right to market an existing company’s products or services in a specific area. You’ll run your own business under their brand name.
In practice, a franchise business involves far more than this. Franchisees are given access to a range of resources that can be used in setting up a business:
- The franchisor’s business system.
- Access to the know-how and experience of corporate staff and other franchisees.
- Training focused on the issues most important to you.
- Instruction manuals and guides to the business.
- An existing brand, with all its products, designs, and marketing materials.
In return for your investment of time and money, the franchisor equips you with many of the fundamentals of business, from its name through to the best way to cook its signature dish.
Shortening the Learning Curve
The advantage of this will be obvious to a lot of people, but it’s worth spelling out. All those resources shorten the learning curve.
You don’t need to develop your own business system. An efficient approach, developed and refined through trial and error, is already there for you. You don’t even have to learn the principles behind creating an effective business in your niche: that’s been done.
You don’t have to work out a name, a logo, a color scheme, or any of the materials used to publicize your business. You don’t need to learn the elements of design and business writing behind them, or how to find a freelancer to do the work for you. Again, the work has been done.
In the early days of your business, when you inevitably hit unexpected challenges, you don’t have to solve them for yourself. Just ask someone else working in the franchise, and they’ll probably have the answer. The wheel doesn’t need to be reinvented, unlike in an independent business.
Setting up an independent business means mastering a hundred different skills at once, from design to accounting to HR. A franchise removes a lot of that complexity, providing the parts that you need. It saves you the time and money that would otherwise be spent on building a business from first principles.
It’s not for everyone, but if you want to save on time and money, then the initial cost for joining a franchise could pay big dividends later on.