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Franchise News


December 14, 2010

The Advantages of Franchising


Investing in a franchise is a secure option that is superior to opening a copycat business for various reasons. Read this article to learn the five main advantages to buying a franchise.


In today's economy, opening your own business is difficult and risky. There is, however, a foolproof option that offers a high potential for success along with a much lesser risk. Investing in a franchise is a secure option that is superior to opening a "copycat" business for various reasons. The following are the five main advantages to buying a franchise.

Branding: A Successful Brand Name

A successful brand name is a vital factor for success in the retail and service industry. It takes millions of dollars and many years in the market to attain pervasive brand recognition. Many small business owners do not have the time or capital to invest into branding. However, when you buy a franchise you get to benefit from the branding of the franchiser. Often times, the branding has been established over decades of thriving business and is virtually priceless.

Advertising: Paid Campaigns from the Very Start

Advertising is often the single largest expense for a business. Many new business owners simply cannot afford the high costs of advertising on television or in other media outlets. When you buy a franchise, one of the benefits you reap is the advertising conducted by the parent company. Most franchisers conduct nation-wide advertising campaigns which positively affect the business of each and every one of its franchisees. For a simple franchise fee, you are essentially buying yourself millions of dollars of advertising. Plus, the advertising has likely been in full swing before you even buy your franchise. This means that the market is well established right from the very start.

Name Recognition: Buying Into A Name That Is Already Recognized

Most people are more comfortable spending their money at an establishment that they have heard of before. Even someone who is looking to buy something as simple as a hamburger, is going to choose a restaurant they have heard of before. When you buy a franchise, you are buying into a name that is already recognized across the country.

Reputation / Legal Security: Offered by the Franchiser

A franchisee not only benefits from the established reputation of the company, but he is protected by the legal department of the franchiser. Issues like accidents and lawsuits can be extremely costly to deal with but, as a franchisee, you are entitled to the legal protection offered by the franchiser. One single incident could bankrupt an independent owner, but a franchisee does not come out of pocket and can continue running the business as usual.

Support: High Quality Result-Oriented Training Process

When starting up a new business, there is so much to learn. This training process can be difficult for independent owners who don't even know where to start. Franchisers offer high quality initial training as well as specialized, ongoing support and troubleshooting. The franchiser wants to ensure success for all of its franchisees and is committed to supporting each and every owner.

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