The benefits of starting a franchise

Starting your own business can be an exciting and profitable adventure, but the decision to launch your own business isn’t always an easy one. Depending on the type of business you want to start, you may need to invest thousands of pounds up front, which can be an intimidating prospect if you don’t have that kind of capital available to you. Starting a franchise, however, allows you to buy into an established brand with a proven track record that can help take some of the financial burden off your shoulders.

What is a franchise?

When you buy a franchise, you’re buying into an established business model that already has proven products or services, marketing materials and methods for generating customers. The primary benefit to starting your own franchise is that you buy into an existing system with little risk. But there are some drawbacks, too—you’ll have to pay royalties (usually based on revenue) and adhere to strict regulations that might not fit your unique personality or work style. You also might have less say in choosing your location than you would opening up shop on your own.

What are the benefits of starting a franchise?

There are many exciting benefits of starting a franchise but below we list the main five. We hope this list of benefits can help you decide whether starting a franchise would be a better option for you to thrive in the world of business.

1) Support

While franchises may be great for some, you might want to think carefully before starting one. There’s no question that buying into a franchise is more secure than starting your own business from scratch, but some franchises are better than others. Do your research and make sure to understand all aspects of what it means to own a franchise before you buy into one. In many cases, the franchisor will provide a lot of support to its franchisees these are the kind of franchises you want to buy where you get support every step of the way as these are known to have higher success rates since it’s obvious the more support you get the more chance you have for your franchise business to succeed quickly.

2) Financing Options

A franchise can be an expensive investment, but you’ll likely find that all your bases are covered in some way or another. The most common financing options for new franchises include starting capital, equipment loans, and leases. Some franchisors have relationships with lenders who give preferential rates to their franchisees. Talk to your franchisor about what’s available; they may even help you fill out any paperwork required by your lender. As a bonus, many banks like to see that you’re buying into a brand name as it makes them feel more secure and confident in lending to you. And if worse comes to worst?

3) Brand name recognition

One of the primary advantages to starting a franchise is that you get to join an established brand name. You’ll often get brand name recognition right off the bat, which can be very important when you’re trying to attract customers. Even if it’s not your business, using someone else’s brand name will often make consumers feel more confident in your product or service. As well, joining an existing brand might make getting financing easier than starting from scratch–the less risky you look as an investment, after all, the more likely banks and investors are going to be interested in helping you out.

4) Franchise businesses have higher success rates than independent businesses

The risk of starting your own business as an independent proprietor is high—as much as 50 percent higher than if you had started a franchise. Franchises provide direction, training, and community to their new owners, which encourages them to stick with it. These factors make franchises so successful. If you’re thinking about starting your own business but don’t have an idea for something original, consider purchasing or founding a franchise instead. It might be just what you need to give yourself an edge in today’s competitive market. If you are considering even selling your business to buy a franchise and jump on this trend we recommend you to use a directory called businesses-for-sale-uk.co.uk listing the best businesses for sale.

5) It’s easier to get access to a loan when looking to buy a franchise

Banks love franchises because they are lower risk than starting your own business. If you have more assets, you’ll be able to qualify for more loans and can get larger amounts with less collateral. Simply put, if you want to start your own business with a lot of help, consider looking into buying an existing franchise that is already established.

Where to find franchises for sale in the UK?

Franchising is an established business model in which you can buy into a business, taking advantage of its reputation and industry knowledge to help you become more profitable, quickly. Whether it’s manufacturing companies or fast food outlets, franchising offers plenty of benefits for both sellers and buyers. If you’re interested in buying into one of these industries, you need to know where to find franchises for sale in your area. How do you find them? The answer to this question is by using online franchise directories which are websites that list franchises for sale franchise-uk.co.uk for an example. If you have read this article but you are not looking to buy a franchise or are looking to expand your business through franchising consider using an experienced team of franchise consultants like Infinity Business Growth Network.