fbpx

Why Franchise with Us

You may ask yourself, “Why should I franchise with Fransmart?” We give you the tools, the tactics, and a strong portfolio of brands when making your franchise investment.

How to Buy a Franchise

Fransmart’s proven 10 Steps to Franchise Ownership is the perfect how to guide for entrepreneurs looking to build wealth through franchising.

Franchise Investor Case Studies

Fransmart has decades of experience in pairing experienced franchisees and qualified entrepreneurs with successful franchise brands.

Coming soon

Become a Franchise Owner

Our portfolio of brands with leading concepts ripe for expansion and best-in-class unit economics.

Franchise Your Business

We are the global leader in franchise development and grow global brands better than any other franchise firm. Learn how to become one of our brands.

Capital Investments

We love investing in early stage brands! We are smart, strategic investors and are always looking for emerging, early stage brands to invest in.

Franchisee Resources

Want To Learn More About Franchising? Learn From The Experts At Fransmart. There’s no better collection of franchise resources and experts.

Apply to Franchise Your Business

We help our brands develop practical franchise development expansion plans with measurable results.

See All Franchise Opportunities

Our portfolio of brands with leading concepts ripe for expansion. Our brands have best-in-class unit economics and a large runway for growth.

About Us

We are proud to work with authentic brands who make people happy. We accelerate the growth of the brands that put smiles on people’s faces.

Services

With decades of franchising experience, our team of franchising experts excels at giving emerging brands the tools to become a profitable franchise.

Contact

Whether you’re playing the field or already have one of our brands in mind, we are ready to put you on the right path to building franchise wealth.

Franchisee Resources

Want To Learn More About Franchising? Learn From The Experts At Fransmart. There’s no better collection of franchise resources and experts.

Videos

Smart Franchising with Fransmart Video series, where you can get the latest in our thought leadership on all franchise-related topics.

Podcast

Dan Rowe, the founder and CEO of Fransmart, has grown brands to more than 100 locations. No one knows more about franchise growth than him.

Coming soon

See All Franchise Opportunities

Our portfolio of brands with leading concepts ripe for expansion. Our brands have best-in-class unit economics and a large runway for growth.

Why You Should Buy a Franchise Instead of Starting a New Business

Apr 20, 2022

Why You Should Buy a Franchise Instead of Starting a New Business

A franchise business can be a good choice for someone who wants to be in business for himself, but with more support and less risk than starting something from scratch.

The risk of owning a startup business is much higher because there’s no one guiding you, no proven systems and processes in place, and no brand recognition. However, franchise owners need to be comfortable with following someone else’s rules and systems and not wanting to blaze their own trail. Former military personnel are usually great at starting a franchise because they are used to following a system.

If you are considering buying a franchise, this article presents the  reasons you should buy a franchise instead of starting a new business:

1. Brand Recognition

As a franchisee, you benefit from consumer recognition of the brand. You eliminate any questions about whether a consumer will like your product because they have already established their interest in that particular brand’s product.

For example, a fast-food franchise like McDonald’s is well known and its franchisees automatically enjoy brand recognition, marketing, and sales promotion when opening a McDonald’s franchise unit.

The problem with mature brands like McDonald’s is the over-saturation of the market. Hence, brand awareness alone doesn’t guarantee success.

Consequently, emerging brands like PayMore, Taffer’s Tavern, Ike’s Love, and Sandwiches and JARs by Fabio Vivianni offer both brand recognition and expansive territories for franchisees.

2. Marketing Support

Buying a franchise guarantees support from the franchisor covering advertising and marketing costs. A franchisor typically charges a small percentage, between 2 – 6% of profits, for advertising costs from all franchisees. This finances marketing for the entire franchise brand.

For example, when a store opens in a new location, it’s not uncommon to see franchisor marketing channels, including email, social media, and TV, advertising the new site as their own. This way, the support received reduces the number of personal investments and strategies individual franchisees must develop to attract new customers.

3. Professional Support

Franchisors provide a good amount of professional support, both in a bid to protect their brand identity and to ensure their franchisees succeed. Field support specialists are provided before or after a franchise agreement is signed, depending on the company policies.

Some areas in which every business requires professional support include site selection, market research, and menu development. Licensing, and the necessary regulations are communicated by the representative or franchise business consultant at no cost.

The representative works with you as you prepare, and sometimes after the launch of your franchise location.

4. Financial Support

Most franchises provide financial support to their franchisees. The type of financial support available depends entirely on the infrastructure within the company. Some franchisors offer direct financial support up to a specific limit, while others have third-party partnerships that can directly finance their new franchisees.

Financial support from franchisors helps you focus on getting your franchise unit launched and reduces the hassle of getting financing from a financial services firm. The level of support a franchisee can receive might depend on credit score, veteran status, and net worth.

Support received from your franchisor may also be specific to equipment, real estate, and supply chains. In cases where a franchisor does not provide direct financial support, you can still have an advantage with a third-party lender since you have the brand recognition of your business to use.

5. Achieve Scalability Using the Franchise Model

Franchise business models are built on their ability to replicate and scale their systems across the board at all franchise locations. Franchisors also provide compounded benefits to multi-unit franchisees who own more than one franchise unit, and master franchisees who may purchase the franchise rights to a large territory and then resell them to other sub-franchisees.

The franchise system allows you to expand your business more efficiently. Even if you have the financial capacity to buy multiple franchise units at once, you can simply start a single franchise unit and be deliberate about plowing back your business profits into buying new units and growing your operations.

Rick Fisher, a major Five Guys franchisee, says they bought their first franchise unit in 2008 during a recession. During that time huge discounts were available, which they were able to leverage to grow their operations. Now, they have over 20 open franchise stores with five other units in development.

6. Enjoy High Speed to Market and Faster ROI

New entrepreneurs must do some heavy lifting to run their business, including research, cost estimation, site location, and real estate requirements. Franchise owners receive help with all of these things, reducing mistakes and getting to market quicker.

According to Fransmart prospective franchisees can launch a franchise business in under a year, which they call year zero because you haven’t started operations. When you do start operations, Fransmart projects that by blitzscaling, which is investing back your profits into your operations to grow your franchise empire with house money, you can continue to add stores and increase ROI.

Conclusion

Franchising is better than starting a new startup for many reasons including support, quicker launch to market, faster ROI, and faster product development processes. The multiple responsibilities associated with starting a new business should make you consider a franchise opportunity. If you wish to learn more about franchising, contact Fransmart today.

Reference:

https://timesofindia.indiatimes.com/readersblog/admission-guidance/why-is-it-a-better-idea-to-open-a-franchise-rather-then-starting-a-new-business-33893/

https://www.franchise500.com/article/286212

https://driverseatinc.com/2020/07/09/why-you-should-buy-a-franchise-instead-of-opening-up-your-own-business/#:~:text=A%20franchise%20system%20not%20only,risks%20and%20maximize%20the%20opportunity.

https://franchisecreator.com/buy-a-franchise-or-start-your-own-business-how-to-decide/

Your Franchise Journey Starts Here

Whether you’re just starting out or already know the right brand for you – you’ve come to the right place. Fransmart helps franchisees use the power of compounded returns to own and operate multiple franchise locations throughout your desired market to grow franchise wealth.