Offering both the flexibility and independence of being a small business owner, plus the support and infrastructure of a larger corporation, a franchise can be the ideal opportunity for anyone interested in becoming an entrepreneur. However, while many articles will breeze through some of the positives and negatives of owning a franchise, few take the time to actually detail out thoughts and research behind the points they raise.
The goal of this is to help you see the positives of opening a small business through a franchisor. We’ll share some stories, statistics, and antidotes detailing why we think franchising is the right path for many inspiring entrepreneurs.
Here we go…the second of seven reasons why franchising may be the right path for you to open your business.
Experience of a Franchisor Translates into Dollars
There are many benefits of operating a business in the Denver area but one has never been that it is easy to get a project approved with the city. The city of Denver and all of its’ suburbs are well known for tying construction projects, even the smallest ones, up for weeks if not months. We recently opened a store outside of Denver. While touring the potential site with a contractor, our project manager asked on a whim if we needed to get full architectural drawings for approval for the city. After all, we weren’t doing much other than taking down a few walls and moving some electrical around. The contractor shocked us when they told us all they would need was a layout. That simple question saved us $10,000.
There are a lot of questions like that when starting and operating a business. While franchisors can sometimes get questions about their initial franchise fee, its stories like this that begin to articulate the value that such a fee encompasses.
There are literally hundreds of questions that translate into real dollars for new business owners. Without a franchise, a new business owner is left to guess those answers. Should you advertise in the local paper? What type of flooring should you install? Do you need that piece of equipment? How many staff do you need to operate your business? These are all questions that have a dollar amount attached to them. They are also all questions a franchisor should be able to quickly answer.
Franchisors have a wealth of knowledge to share. The best ones have very specific equipment and marketing plans they share with you. Their training is full of operational best practices regarding hiring, staffing, and the day to day running of your business. These are all from lessons learned (some hard ones) and experiences by their franchisees.
In addition to the savings most franchisees get from start-up and operational efficiencies, most franchisors have also assumed many expenses that you as a new business owner won’t have to undertake. Most have already registered their trademark, paid for a logo design, developed a website, designed marketing materials, established a supply chain, and negotiated discounts with suppliers. These are thousands of dollars of expenses that you will not incur in addition to the time you save by not having to do any of this yourself. So while your startup costs may be increased by the franchise fee, odds are they’ll often be much lower overall.
The best franchisors are extremely vested in your success. Your wins are their wins….your losses are their losses. As a result, the best franchisors have learned from their lessons and perfected their business so they can pass it on to others. These lessons have all had a monetary value attached to them. As a result, when they speak they do so often with the bottom line in mind.
What it Comes Down To
The decision is a very personal one. No matter which you route you decide, the business will ultimately be yours. Hopefully, this has given you a little more insight into the decision then you had before.
Below are links to each article in the entire series of 7 Reasons to Franchise.
- #1 The Franchisor is your Business “Partner”
- #2 Experience of a Franchisor Translates into Dollars
- #3 Most Franchisors Offer the Expertise of a Professional Business Team
- #4 Franchisors Aren’t Selling a Job, Their Selling You a Business
- #5 Franchising Offers Flexibility
- #6 Franchising Can Help Financing Your Business
- #7 Franchising and the Risk Equation – What is the right amount of risk?
If you are interested in discussing franchising or oppurtunities with Monkey Bizness, please reach out to us.