In a franchise business, the franchisor provides a developed way of doing business, ongoing guidance,
systems and assistance in return for periodic payment of fees and/or purchases.
The main purpose of business is to earn profits and business expansion, creating
the own niche in the industry. The high ROIs are always welcomed along with
other business perks.
Advantages of buying an authorized
franchise agency.
Branding is a very powerful component in business. According to the online dictionary, brand recognition is a marketing concept that shows customers’ knowledge of a brand existence. To open a franchise offers a brand which has already established and people are familiar with. A national franchise consulting and marketing firm, works with franchisers to help them sell to prospective franchisees and to refine their brand
2)
Lower Risks for Failure
Entering in
an industry, the most important thing for entrepreneurs is the lower risk for
failure. There is a big difference in failure rates for entering in a new
market and entering in a known market. According to Cavaliere and Swerdlow, the
Department of Commerce statistics further reveal that franchisor-franchisee
failure rates are substantially below the failure rates for new business in
general
3)
Easy Setup
One of the
most challenging things for entrepreneurs about entering in a new market is how
to build. Franchising eliminate this problem because they often provide easy
setup for franchisors. According to Cavaliere and Swerdlow, “the franchisee
gets its entire business format from its franchisor; this includes marketing
strategy and plan, operating manuals and standards, quality control and
continuing two-way communications
4)
Ready Customer Portfolio
In
franchising, the most important affect is to comfort of knowing which means
customers know that they can find the same quality and same service of the
product or service. Most of the franchise business’ customers are known as
loyal customers. Loyal customer is the most valuable capital for businesses.
According to Robert Bosch, “I prefer losing money instead of losing customer
confidence
5)
Easy to Find Financial Support
Banks and
similar institutions provides convenience to the franchises about getting
funding and financing because it is known that there is a low failure risk rate
in franchising. Banks will prefer to finance a known business model than a new
business.
6)
Business Synergy
The word
“synergy” refers to the idea that the sum of the whole is greater than the
separate parts. This principle can be applied to franchising. Those who buy a
franchise become part of a “family” where all members work together for the
good of the whole. Often, some of the most effective ideas come from
franchisees who in turn share their ideas with the corporate office and with
other franchisees.
7) Buying and Sell
Most small-business owners cannot afford to inventory products in bulk or do extensive advertising. The franchisee buys this advantage when he or she buys the right to use the franchisor’s purchasing power and advertising – most franchisors provide advertising help and direction. Furthermore, as the number of franchisees increases, so does public awareness of the franchise, which can be a tremendous advertising advantage. Franchisees located near one another can also advertise together, reducing costs.
Most small-business owners cannot afford to inventory products in bulk or do extensive advertising. The franchisee buys this advantage when he or she buys the right to use the franchisor’s purchasing power and advertising – most franchisors provide advertising help and direction. Furthermore, as the number of franchisees increases, so does public awareness of the franchise, which can be a tremendous advertising advantage. Franchisees located near one another can also advertise together, reducing costs.
The above
are the benefits of buying an authorized franchise agency. Those willing to buy
an agency must see to it that the above benefits are met with the service
provided to them.
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