Why Do People Buy Franchises?
Franchising is a fantastic way for people to start and run their own business - it provides them with an opportunity to earn a high income but with the support and backup of the franchisor behind them.
A Franchise Reduces The Risk of Failure
Starting a new business always carries a risk - new businesses are vulnerable. The degrees of vulnerability vary depending on:
- Financial resources
- Relevant abilities
Many who start up their own business lack some or all of these qualities. Many fail because they cannot learn quickly enough - before the money runs out. 80% of new businesses starting today will fail within the first five years.
With a franchise this risk is substantially reduced - because the franchisees are buying the experience and expertise of the franchisor. This will also stop them making the same mistakes that the franchisor has made during their trading life.
And because they become part of a successful and established business the franchisees are able to take advantage of the franchisors buying power and strong relationships that they have developed over the years.
Other Franchise Benefits
As we said right at the beginning of this section a franchise provides the opportunity for people to earn a high income working for themselves but with the training, support and experience of an established business behind them.
They are selling an established product or service with a turnkey business plan and format for them to operate. This includes the brand, systems and processes, lead generation and marketing assistance plus help with raising finance if required.