When starting up a business there are different options to consider, including if the entrepreneur wants to start a business from scratch or consider a franchising opportunity. For that reason, entrepreneurs should be familiar with the potential benefits of being a franchisee.
- Rewarding: it can be rewarding for the entrepreneur to own their own franchise business and to directly benefit from their hard work.
- Flexible schedule: owning a franchise business can provide the entrepreneur with flexibility in their schedule and a high level of independence.
- Minimize risk: by utilizing a proven business model from the franchisor, the franchisee will inherit a tested business model and benefit from the experience and expertise of the franchisor’s business.
- Benefit from ongoing support and training programs: the franchisee will receive operational and other support from the franchisor. The franchisee will also receive training and support to help them run their franchise successfully.
- Access to a new business market and economies of scale and benefit from known brand name: the franchisee will be able to benefit from a known brand name of the successful franchisor; benefit from an established market for the goods or services of the business; and take advantage of economies of scale.
- Marketing materials and marketing support: franchisees can benefit from the marketing efforts of the franchisor which can include marketing teams, marketing materials and regional or national marketing efforts.
- Greater access to financing: because a franchisee is more likely to enjoy success than an unproven business, they may have greater access to loans and other financing.
There are a variety of important aspects of setting up a franchise, including administrative concerns, insurance, finance, marketing and legal documents. Business law can help franchisees with all of this to get set up for success.