The idea of buying a franchise as an investment might seem appealing, but it’s not for everyone—and that’s okay! But if you’re interested in buying your own franchise, then you should learn why it’s such a smart decision before you take the leap and dive into entrepreneurship headfirst. The following 10 reasons are sure to help you decide whether or not buying a franchise will be the right move for you, your bank account, and your career.

1) Brand Name recognition

This is especially important for restaurants and other businesses that rely on consumer opinion. If you buy a franchise, you’re purchasing more than just a business; you’re buying into an established brand name that your customers know and trust. People are hesitant to try new places, so businesses with recognizable names have an easier time convincing people to buy their products or services. The online presence of many franchises makes it even easier for buyers to research their options.

2) Successful management systems in place

When you buy a franchise, you’re buying into a proven business model. Each franchise brand has its own history of success, as do some of their management systems. And while we can all agree that success doesn’t guarantee future performance, it certainly helps to have some sort of track record to work with. For example, McDonald’s has arguably one of the best-known franchises in existence and when your investment is part of a bigger brand (as opposed to opening an independent restaurant), they also tend to be more willing to help you succeed if you need assistance down the road.

3) Training and support

One of your biggest considerations in a new franchise investment is support, but even if you’re buying a franchise for sale, there’s no guarantee it will have what you need. The only way to know for sure is to ask questions. Call up other franchisees and get their take on how helpful and responsive corporate headquarters are, how much they invest in training and support programs, whether they provide templates and systems or leave it all up to you. This will help you answer: Will I feel alone or overwhelmed when I start my own franchise business? If you don’t want to be left out on your own, make sure that personal support is part of your franchise agreement. The good thing is most franchises do offer a huge amount of support to new

 

franchisees. This is one of the main reasons why franchises have such a high success rate as we will explain later in the article if you keep reading.

4) Reliable suppliers

When you own a franchise for sale, you’ll be able to work with a reliable supplier—the parent company of your franchise. For example, most Pizza Hut locations get their ingredients directly from the head office. That means they know they can rely on their pizza dough being ready when they open up shop in the morning. In contrast, if you open up a restaurant from scratch, you have to locate your suppliers and hope that things go smoothly each time you place an order. It’s far easier to just have one or two reliable suppliers for all of your products—but only if you’re working with someone else’s franchise for sale.

5) Franchises have higher success rates than independent businesses

According to NBCNews, Over 85% of franchises are still operating after five years, while only 50% of independent businesses last that long after five years. This means you’re more likely to succeed with a franchise as your business partner—and more likely to grow over time. With that comes higher profits and lower stress. Everyone wins! This is another reason why franchises are so popular as the success rate is so high unlike other business investments.

6) Free marketing materials

When you buy a franchise, your new business is already a brand. The company you’re buying into has done some of your marketing for you. They have a logo, advertising campaigns, signage, and more. For most people starting their own franchise business, that’s all they need to get off and running. If you plan on doing your own marketing—or are just curious about what comes with a franchise why not browse our blog for more info on marketing your franchise business?

7) Proven business model

Franchises for sale are proven, business models. Every franchise has proven its ability to make money over time, so when you buy into it, you’re buying into an existing business with an established customer base and process for delivering products or services at a profit. As such, you can expect that your odds of success are much higher than they would be if you started your own business from scratch.

 

8) Credibility with banks and investors

With franchises, banks and investors are more likely to work with you. It’s hard to secure a loan without any experience in business, but if you can prove that you’re willing to invest in your own franchise—and if it comes with a proven business model—the lending institutions will be much more receptive. This goes for investing, too; when venture capitalists see that you’re serious about your idea and have invested money into growing it yourself, they’re more likely to be receptive. In both instances, banks are more confident knowing that there’s something tangible behind your dream business.

9) Buying a franchise is affordable, but you can still make it profitable

The more franchises for sale that you look at, the better understanding you’ll have of price ranges. If it’s important to be hands-on in your business but you can’t afford to spend a ton, look into a franchise as a cost-effective alternative. But don’t expect every franchise opportunity to be profitable right out of the gate; investing in any new business will take money and time—and there are no guarantees it will work out. The secret is making sure you’re diligent and thorough from beginning to end.

10) Enjoy financial security for life!

The ideal way to get into business for yourself is to start a franchise. Unlike starting a standard small business, in which you have virtually no financial security (you are personally responsible for all liabilities), when you buy a franchise, your risk is shared with your franchisor. By paying an upfront fee and/or royalty fees based on sales, as well as other fees based on the percentage of profits (or lack thereof), you have steady money coming in from your franchisor. With that steady stream of income comes financial security.

Interested in buying a franchise business?

Franchising is one of today’s fastest-growing business formats and many people are buying into it, but there are several factors you should keep in mind before taking that first step. First, recognize that a franchise represents an investment—and not just in terms of money. Depending on your commitment level, buying a franchise can mean giving up control over things like pricing, product development, and employee hiring. While these areas might seem trivial when compared to others in small business ownership such as real estate or financing (or even employee management), franchising means you won’t have total control over your business operations. As with any small business purchase, take time to understand what types of risks and rewards your choice could bring. However, if a franchise sounds right for you why not browse our online list of franchises today to find the ideal franchise for you at Franchise UK.

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