For the individual owner, there are particular benefits to franchising, a few of which are discussed in the list below. Well-known trademark, either regionally or nationally, and its own cumulative goodwill – saving the business owner the price of creating and advertising a name that customers already recognize. Established business framework – reducing the startup problems and guesswork involved with starting a fresh business.
Well-tested resources of source and service – saving time and trouble to find suppliers of needed products and equipment. Ongoing marketing and sales assistance – franchisors have proven, existing, and successful systems of advertising. Financial assistance – banks and similar lending institutions are prepared to lend money to a business that has the backing of a successful franchisor. Most franchisors have direct financial assistance or help in finding adequate sources of financing. Reduced amount of risk – you are buying into a recognised concept so the risk of failure is lower. Ongoing research and development – most franchisors constantly research and look into essential information such as competition, product demand, seasonal variations, and community attitudes.
Site selection and business support – the franchisor helps with selecting a appropriate site location, building building design and supervision, worker training, and functional support. Proven operating methods and techniques for creating and offering the product. Standard quality, uniformity, and desirability of the franchisor’s product or service. Collective buying power and centralized purchasing system – franchises may have the ability to purchase products at a reduced cost because the franchisor can …
