Franchise Advantages
When looking at buying a franchise you need to be able to evaluate the franchise on offer and your own skills and likes
. Being able to pick the right franchise for you is the first step to ensuring a long term business that provides stability to you and your family.Analysing the franchise package you should be looking at:
Training - The franchisee is given the necessary training to start his business and eventually run it smoothly. The franchisee as well as his employees are taught all the business systems of the company covering product preparation, quality standards, business controls, recruitment of personnel, and marketing. A good franchiser will provide training to the franchise staff on a continuous basis.
Some advantages are:
Lower Capital Requirement - Compared to a non-franchise business, less capital is needed in a franchised business since the experience and tested system of operations of the parent company would already have eliminated the unnecessary expense incurred through trial and error.
Buying Supplies at Lower Costs - The franchisee is able to procure all necessary supplies at lower costs because the prices are negotiated by the company with the suppliers in behalf of all the franchise units. Because of the size and projected regularity of orders, the franchisor is able to get huge discounts. Buying wholesale for the whole network means big savings for the individual franchises. This gives the franchises a big advantage over their competitors because they are able to reduce expenditures on a continuous basis. This procurement set-up is definitely more advantageous to the franchisee as against procuring supplies independently.
Extensive Promotional Campaigns - A franchise is the beneficiary of an extensive marketing campaign made possible by the sharing of the costs by the franchises. Many franchisees are required to shell out an advertisement royalty to the company as their share in the cost of promotional campaigns of the company, effectively spreading the cost among all the franchises. This accounts for the large marketing resources of the franchiser enabling the company to avail of the services of top-caliber advertising agencies. Being situated in highly visible locations and benefiting from a huge promotions budget is a potent combination that is difficult for competitors to overcome.
Continuous Research and Development Programs - The Company conducts continuous research and development programs so that the business can improve the existing products and develop new ones to offer to the consumers. The marketplace changes rapidly and businesspersons have to keep up with the pace. The chance to seize the opportunity of leading in the market is available for only a very short while. This stiff competition necessitates continuous research and development programs for the company and the franchise network to succeed.
Knowing what is right for you and if the offering franchise meets your requirements is a must. Doing your research and understanding the market will soon help you make the right choice which in turn give you a lifelong business. Best wishes with your franchise hunting and remember to do your due diligence!
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