4 Reasons For Investing In A Franchise

There is always a reason for the things we do, even if it doesn’t make sense to others. In the case of franchising, it takes one with the mentality of a risk taker to become a franchisee, which would probably make less sense once we look further.

But Doesn’t Joining A Franchise System Somewhat Reduces Risk?

Perhaps yes, because franchisees will be getting lots of help from the franchisor in setting up and running the business in a proven-to-be-successful way. But it doesn’t deviate from the fact that in order to join a franchise system, one needs to put up a large upfront capital outlay for franchise fee payments and setup costs. On top of that, franchisees will also be committing themselves to fixed costs such as rent and employee salaries. Whether rain or shine, these fixed expenses will need to be paid. Clearly, there’s a lot of risk involved here.

So why do people still invest in a franchise? Here are 4 common reasons, and you might find yours.

Related: Does Franchising Work?

reasons-for-investing-in-a-franchise

1. You Want To Make Money

By far, this is definitely the top reason for acquiring a franchise. Everyone invests to make more money because there is always something else that we want to have. Maybe you want to get your own private jet, maybe you’ve had enough of horrible neighbours and decided to get an island to be on your own, maybe it’s a baby thats joining the family, or it could just simply be because it’s time to replace some old sneakers.

For all the possible reasons, these goals come with bills that need to be paid and franchising could certainly help you do so. While investing in a franchise isn’t a guaranteed way to make money, it does alleviate some of the risk that all businesses face — by implementing appropriate measures with the help of the franchisor.

2. You Like Templates

“You’re in business for yourself but not by yourself.” This is a common quote that you’ll hear if you’ve had the opportunity to interact with people from the franchise industry. For all the fees and payments you’ll be submitting to the franchisor, what you’ll be getting back in return is really a template on how to replicate the successful business.

The best part about this particular template is that the franchisor has already worked out all the chinks in the armour. With the franchisor having already done all the heavy lifting, and will continue to do so in future, all you need to do is follow the system. Besides, there’ll be guidelines delivered in the form of a frachise operations manual, which should provide a step-by-step overview of all operational processes. So literally, it is all written down for you to follow. You just need to choose a franchise that meets your needs and could potentially fulfil your wants.

3. You Know Nuts About Marketing A Brand

One of the biggest obstacles for a new business is building brand recognition and trust among consumers. But in a sea of competition that is apparent in almost every industry or sector, fighting for the attention of today’s discerning and impatient consumer just gets increasingly more difficult. What’s more, even with all your marketing efforts to give your business a shout-out, there’s no guarantee that customers will show up at your door, much less having even heard of your brand.

However, franchising has advantages that addresses these hurdles. With reputation and goodwill already being established among the public and consumers, taking up a franchise allows you be part of a brand that people already know about and associate with a certain level of quality. Guess what? This makes converting a consumer into your customer much easier.

4. You Hate Your Job

Do you feel like your job isn’t paying you enough? Or tired of the relentless politics that's going on around your office? Do you fear an unfair retrenchment coming up? Well, you’re not alone becuase this is probably what everyone will feel at some point in their working lives. If you are seriously considering leaving your job-from-hell, taking up a franchise could be an option that could provide a steady flow of income. And the best part is, this time you get to choose what you get yourself into. But of course, this only works wth the pre-requisite that you can cough up the dough for the franchise investment.


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