Franchising is a well-known strategy for the expansion of business. Also, it is one of the best business marketing strategies to attain maximum market share. This marketing concept helped much business across the globe, attracts it popularity, rapid growth, and achieve its success.
In India, Franchise industry has risen substantially in recent years, and statistics report states that “India is expected to grow from US$1.5 trillion to nearly US$6 trillion by 2030”
In this article, let’s discuss the major benefits of franchising business in detail:
- Capital Cost
- Established Brand & Proven Idea
- Training & Support
- Economies of Scale
- Higher Brand Recognition
- Be Your Own Boss
Capital is the fundamental determinant of any business, lack of capital is the greatest barrier faced by most entrepreneurs. Franchising business paves entrepreneurs to enhance their start-ups without the risk of equity & debt cost.
Established Brand & Proven Idea
The major advantage of owning the franchising business is investing in an already well-established brand, tested and proven business idea. Already someone builds a viable business system to operate. As a result, chances of risk about the growth and profit of the business are likely minimum.
Training & Support
Most of the franchisors provide comprehensive hands-on training programs on the methodologies they are using in the business system. From the training, you can benefit from new developments in the franchise industry. Extensive ongoing support and training are major components of achieving the franchising goal. Some franchises even offer financial assistance in terms of loans to their franchisees.
Economies of Scale
A franchise business system provides purchasing efficiencies through economies of scale. Also, you can leverage the advantage of bulk discounts on products as well. Another major benefit is all the products which you ordered are dispatched from either a trusted partner or franchisor.
Higher Brand Recognition
Customer acquisition is the hardest part of any business, but it’s eliminated in franchise businesses.
Franchise business is already established well-known brand among customers that have a strong loyal customer base and high brand recognition. Therefore, you will get a hasten path to achieve profitability from the day one when the business started.
Be Your Own Boss
The franchise industry opened a wide door to welcome many entrepreneurs by establishing your own venture. Buying the franchise business allows you to be your own boss in any field that you are passionate about without worried about the customer base, brand building, infrastructure, risk of profitability, and legal problems. At the same time, running a franchise will need as much effort and persistence work as running your own venture.
Before entering into a franchise agreement do well research about the industry/company, check out their performance track and reputation. Better consult with the in-field experts and consultancy to choose your best-fit.
After you have done the consults and proper research, just tighten the seat-belt to drive the profitable ride of the franchising business.