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Why Buy a Franchise?
If you're considering a career change, you might want to consider starting your own business, rather than working for someone else. And, for many, one of the most best ways of starting your own business is to buy into an existing business by buying a franchise.
What is a franchise? Odds are you already know many franchises, or utilize their services many times during the day, whether it's eating at a restaurant that is a franchise, or having work done on your car from a franchised car repair place. Franchises are everywhere. Think Starbucks, McDonalds, Jiffy Lube, etc.
Franchising refers to an arrangement in which someone like you buys the right to sell a product or service from a seller, the franchisor. The price to buy into a franchise can range from a low of $10,000 to the upper $100,000 for the older, more established franchises.
Why are franchises a better bet than starting your own business from scratch?
Proven Business Model: A reputable franchise has already set up and operated a proven business. They have the business model which serves as a blueprint for all their franchisees. Some statistics show that a franchise business failure rate is less than the failure rate for new independent businesses.
Training: You don't have to know about the business before you buy into it. You are usually provided training in all aspects of the business in order to run it.
Support: You are usually provided support by the franchisor. When you start a business from scratch you are often on your own.
Funding: Often time lenders may be more inclined to make loans to franchises because they are less risky than those which are started from scratch. You may even seek the help of the franchisor in helping you obtain funding.
Name recognition: You don't have to wage a huge campaign to get your name out there. If it's an already-successful franchise, chances are people already know the name and trust it.
Advertising: You may benefit from the already-existing advertising campaign of the franchisor. In addition, you may receive advertising materials from the franchisor, instead of having to create your own advertising materials, which can be costly.
So, these are some of the reasons you might want to consider purchasing a franchise business. But, are you the type of person who will be a successful franchisee? For that, you might want to read inside: Should I buy a franchise?
Synonyms: Ranchise, rfanchise, fanchise, farnchise, frnchise, frnachise, frachise, fracnhise, franhise, franhcise, francise, francihse, franchse, franchsie, franchie, franchies, and franchis are typos for "franchise." |
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