Training & Support
Buying a franchised business allows you to utilize the knowledge of the franchisor in various capacities. Have a question about the best type of advertising? The franchisor has the answer. Need to know how many employees to staff during busy hours? How about slow times? The franchisor has the answer. Never purchased commercial equipment before? Don’t worry; the franchisor will guide you in the right direction. Basically, any question or concern you have (or will have) can be answered by the franchisor.
Purchasing Power
Let’s assume just for a second that you are in contact with a supplier for your independent start-up business. You have just received a price quote for supplies for one location. Now, think about what would happen to that price if you had two locations – it would decrease.
Take that location figure to 75 or 100+ locations and imagine what type of decrease can be expected. It is that type of bulk purchasing power, acquired through franchising, that cannot be obtained through independent businesses.
It is truly simple, lower your costs (through a purchase cooperative) and increase profits.
Broader scope of Marketing/Brand Recognition
Again, think of yourself in the position of the independent business owner. You want to rent a billboard along a heavily-trafficked interstate but the cost is simply too much. Now imagine if you had ten other people to contribute to that cost. You have put less than 10% of the total capital into the advertisement, but you (and the other contributors) will benefit from 100% of the advertisement.
It is these types of regional or national marketing cooperatives that drive the success of franchising. It almost goes without saying that consumers seeing companies’ advertisements increase brand awareness and loyalty. You, as a franchisee, can take advantage of low cost/high result advertising.
