3 Advantages of Franchising: What to Know Before Starting a Business
Many industries are open to new talent, including those with the talent and the skill to start a business. Market experts predict various industries, including the exterior cleaning industry, are going to see renewed profits and growth. Now is a good time for enterprising entrepreneurs to jump in. But starting a business, in any economy, is a risky endeavor, especially if you try to start an independent business. As you consider starting a business, you would do well to investigate franchising to get all the advantages you can.
Advantage 1: Training
The relationship between a franchisor and a franchisee has several aspects to it. One of which is a teacher and a student. One of the earliest advantages of franchising you will experience is comprehensive training in your chosen industry. A good franchisor will provide you with all the instruction you need to get started, as well as ongoing training opportunities. Training not only ensures you receive the knowledge and skills needed to run your business but helps you realize your full potential and stay motivated.
In franchising, there are two primary types of training: headquarters/home office training, and ongoing training. HQ/home office training usually occurs during your onboarding process as a franchisee. You’ll be invited to the main office to meet the key team member and learn about the company’s primary business model. You may also be given a tour of the facilities. You’ll go through on-site training at HQ where you’ll be familiarized with the day-to-day operation of your business, including any tools and/or systems used. This stage in your training will last about a week to make sure you’re comfortable running the business.
Finally, ongoing training is provided to keep you up to date on the company’s latest practices and developments. This can come in the form of online workshops, in-person seminars, and monthly franchise network support calls. Ongoing training is also a service that you, as a franchisee, can offer your employees. This will keep your employees motivated and informed (much like yourself), as well as promote a good work environment.
Advantage 2: Support Services
Another advantage of franchising is reflected in a popular phrase used to describe franchising: “in business for yourself, but not by yourself.” As a franchisee, you’ll receive support from your franchisor, which may include the following:
- Marketing and Advertising
- Technology services
- Site selection & development assistance
- Research and development for new products and/or services
- Brand name use
- Administrative support
If an independent business owner wants to get any of these services, they’ll either have to hire someone to handle them in-house or pay a third-party provider.
Advantage 3: Proven Concepts and Business Models
One of the biggest advantages of franchising is you can be assured the business model and concept you’re using has a record of success. If you’ve done your homework on your chosen franchise, then you can see from the history of the company how its franchisees have established profitable businesses providing the company’s products and/or services, utilizing the company’s business plan. The proven success of a franchise is also beneficial for financing. Opening a business requires capital, and that can mean taking out a loan. Banks and third-party financiers are more inclined to grant loans to franchises with good track records.
Important Tips to Franchise Selection
Training, ownership support, and the backing of a reputable business are three major advantages of franchising. One key element to all of them is making sure you sign on with a quality franchise. Not every company has what it takes to succeed in the long run, so before you agree to join a franchise, it’s important to know what you’re getting into beforehand.
When selecting a franchise, be sure to investigate its business model and concept to determine if they have longevity. Some businesses are started to cash in on a trend or fad but don’t have a solid foundation of a reliably in-demand product or service. Others may have inexperienced founders who have not been in the industry long.
You should also consider the demand for a franchise’s goods or services in the area where you want to open a location. Some franchises have regional appeal, and interest is not present elsewhere. Demand sometimes comes and goes with seasons as well, so be sure either you or the franchise has a business plan that takes off-seasons into consideration.
Make sure to ask for a company’s franchise disclosure document (FDD) so you can review it to determine if the company’s business plan has staying power. If you’re not financially minded, it might be a good idea to have an accountant review the FDD with you for financial weaknesses.
Finally, check a company’s background before signing on to make sure it doesn’t have a history of legal problems or regulation violations. A good franchise stays in compliance with industry regulations and abides by all local, state, and federal laws that apply.
See Why Franchising with Window Hero is a Smart Choice
Window Hero is a company that offers you the advantages of a franchise system, has a solid reputation and is affordable. We’re an exterior cleaning service company with over 16 years of experience in the industry. We are well-established in North Carolina and are seeking to grow. We are looking for motivated entrepreneurs, who may be asking themselves “why franchise?”. Window Hero has multiple service offerings, and we have a history of customer retention in a seasonal industry. We will provide you with operational training, marketing support, employee hiring assistance, financial guidance, and more. To learn more about Window Hero, use the link below and apply today.
