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There are different ways to realize your dreams in business ownership, which include investing in a proven franchise opportunity, such as a home services franchise, buying an existing business, or creating a business from scratch. There are clear advantages and disadvantages to owning a franchise business over these other career or business ownership options, but to know which path is right for you, you should first consider your motivations and qualifications for business ownership.
Let's consider a typical scenario:
You’ve been considering owning your own business for years, and something recently has finally enabled you to pursue it. Perhaps you have been downsized, laid off, or are just tired of making money for someone else and ready to generate income for yourself. You are eager to take control of your life, become your own boss, and acquire new skills along the way. You aim for a solid income and are willing to dedicate whatever hours necessary to jumpstart your new career, but your ultimate goal is to eventually work reasonable hours and have more time for yourself and your family.
If this story resonates with you, you are likely an excellent candidate for franchise ownership. This path will allow you to benefit from a proven system of operations and a training program that will get you up and running quickly and efficiently. As you lack previous business ownership experience, the ongoing support you will receive from a franchisor will be crucial to your success. Many franchise opportunities offer a turnkey package that includes almost everything you need to start your business. Moreover, most franchisors require no previous experience in their industry, allowing you to consider a variety of businesses, including a junk removal franchise, without being confined to the industry you know.
Franchisees can leverage lower cost materials due to group buying power. They also learn from one another and typically form a peer support system. As you won’t be bogged down with every minute detail of owning a business as you begin your franchising journey, you will be able to focus on growing your business.
One potential disadvantage to franchise ownership is that you must adhere to a franchisor’s rules. Essentially, you are in charge as long as you comply with the elements of the franchise system. This is necessary for the franchisor to ensure consistency across the brand—and let’s face it, they’ve done the research and tested the procedures so their way is the correct way. This also benefits consumers, who can expect comparable quality products or services no matter which franchisee they patronize, anywhere in the country or around the world.
Another perceived disadvantage is that a franchisee must remit royalties and sometimes a marketing or advertising fund fee to the franchisor. Royalty payments are compensation for everything the franchisor provides, including access to the brand and the operating system. The franchisor uses the marketing fee to provide national advertising to enhance the brand and increase market penetration more significantly than a franchisee could achieve independently. National marketing funds also allow franchisees to benefit from professionally produced marketing materials and realize efficiencies from pooled funds.
For many, franchising has proven to be a viable route to business ownership. It typically offers the lowest risks and the highest level of support. Because a franchisor doesn’t succeed until the franchisees do, you’ll find a team of dedicated professionals ready to assist you every step of the way, from site selection to employee hiring to the grand opening. They will stay in contact with you from the beginning and continue years down the road, ensuring all your questions are answered quickly through websites, toll-free numbers, and dedicated staff.
The cost of this continued support is usually in the form of royalty payments based on earnings, but successful franchisees understand that the advantages of franchising are worth the expense. Research and development are possible because of feedback from those in the field, and this cooperative involvement is a hallmark of a well-run franchise business.
And that’s why franchising succeeds - because it works, for the franchisor, for the franchisee, and for the consumer.
