5 Advantages of Franchise

Franchise is a robust business model that allows a business operation achieving tremendous success. While sometimes, or most of the times becoming a franchisee will cost a lot of money, there are other benefits that can outweigh the disadvantages.

Here are 5 advantages of a franchise:

1. High success rate

Statistically, franchise has a high success rate of more than 90%. That’s a really impressive percentage, considering the rate of a business success is merely 1 to 5, or worse.

A business can only be franchised after recording successive years of operation. In other words, a franchise is a business model which is based on proven ideas and implementation. And with high success rate, come a reduced calculated risk.

2. Recognized brand and trademark

Brands such as KFC, McDonald’s, 7-Eleven, Dunkin’ Donuts, Starbucks and so on have become household names in many countries worldwide. Hence, you can leverage the powerful brand names for your marketing strategy. You can now focus your time and effort to get the daily running of the business operation.

3. You’re not alone

Entrepreneurship can be a lonely road, but not with a franchise business. Your franchisor will never allow you to be on your own, toiling with all the paperwork, training and operation. More often than not, a good franchise offers very powerful and superior training and coaching system. All is done with the intention to make your business a success. Because when you do, they also reap the profits.

4. Easier financing

Relatively, it will be easier to get financial help for business which has proven to be a success in the past and present. It is only natural for the banks or financial institutions to be reluctant to approve your business loan unless they know the odd of success is high. Your franchisor will also give you great help in developing a sparkling business plan for loan application.

5. Immense profit

Once running full fledge, it won’t take long before your franchise business reaches the break even point, and from thereon, it’s profit. With the right marketing strategy, brand positioning, and growth of the customer base, your days can only be cheerfully better.

Other posts you may want to read:

1. Buying a Franchise: 10 Questions
2. 5 Disadvantages of Franchise
3. 5 Financial Loans by SME Bank
4. Franchise With Smart Wash Laundry
5. Ridpest Offers Franchise Pest Business
6. How SME Bank Can Help You
7. How to Choose the Right Franchise
8. Franchise in Malaysia

Author's bio: Zul is the founder and principal contributor for the SKOR Career blog. He is the author of two books, The Malaysian Job Seeker's Dilemma and Buat Duit Tanpa Kerja Makan Gaji (How to Make Money Without a Job), available in major book stores nationwide. You can reach him at zulkiflimusa[at]gmail.com.