If you’re interested in starting a business, you’ve probably wondered if a franchise is the way to go.
You’re not alone. According to The Franchise Council of Australia, franchising is a $182 billion sector with over 80,000 franchised businesses.
So why do so many people choose to open a franchise rather than starting their own business? Let’s examine a few of the many advantages of franchising, so you can get a sense of whether it’s the right business model for you as well.
The top 6 advantages of franchising
Joining a franchise has many benefits, whether you’re an experienced business owner or taking the leap for the first time. Here are the top six:
– Brand recognition
One of the biggest franchising advantages comes from joining a well-known business with an established brand identity and footprint.
There’s far less effort and cost involved in marketing to customers when they’re already highly familiar with your brand. This recognition leads to a market of customers who already know your brand, especially if you choose an iconic franchise like Red Rooster – one of the most well-known Australian brands around.
As a bonus, that same brand recognition also gives you access to a pool of potential employees who want to work with you.
– Higher success rate
Another advantage of franchising is the much higher success rate compared with opening a new independent business.
That’s partly because the franchisor has already established all the processes for you to follow. All the hard, trial-and-error work has been done for you ahead of time. You can reap the benefits of that work, and take advantage of all the support the franchisor provides.
– Easier financing
If you need financing, the fact that the franchisor has a proven success rate tends to make investors (banks and lending institutions) more likely to finance your business. A proven business model is generally more appealing to them than an independent business that’s starting from scratch, because it’s just less risky.
And even better, it can cost far less to buy a franchise than it would to start up your own business.
– Established relationships
Many franchisors have built strong relationships and negotiated bespoke arrangements with suppliers and distributors. The size and scale of the franchise network allows them to buy at prices that aren’t available to smaller, independent business owners on a year-round basis.
Being a franchisee lets you leverage those relationships and pricing agreements, taking advantage of your franchisor’s collective buying power. This allows you to focus on your day-to-day business.
– Comprehensive training
Professional franchisors prepare you to join them by providing extensive, high-quality training before you open your store.
For example, Red Rooster’s ten-week Induction Training Program means you hit the ground running with your new store – even if you have zero industry experience. Your training will be a combination of classroom learning and hands-on work in stores alongside an experienced franchisee. The result is a strong grounding in the entire operation.
This kind of training can save you years of expensive trial-and-error while you figure out what works in running your operation.
– Franchisor support
A professional franchisor will also offer you head office support with everything from technology to marketing, human resources, employment relationships and advertising. That frees you up to focus your attention on your day-to-day operations. This support makes sense: after all, the franchisor is (or should be) invested in your business succeeding as much as you are.
For example, as a Red Rooster franchisee, you’ll receive support from the industry experts to help you succeed. We’ll handle your supply chain logistics to ensure your orders get to you at the right time. We’ll help with promotion and sales, as well as assign a dedicated Business Consultant to regularly meet with you and provide support and advice.
In fact, at Red Rooster, we start supporting you long before your store even exists. If you’re opening a new store, we know building it needs to be a turnkey operation. That’s why we contract the builder and manage the entire project for you. And of course, we also help with planning your store opening and your ongoing business to ensure that you’re as successful as possible.
Do your research
As with any other investment, you need to carry out due diligence before you decide to invest in a given franchise.
For a start, it’s important that your business product and/or service are aligned to you and your lifestyle. You can expect owning a franchise to be a hands-on experience. There’s no hiding away in the back office, so it’s vital that you genuinely enjoy the work.
Then, to get a sense of whether a franchise will work for you, research the industry it’s in and its competitors. Speak to existing franchisees about their experiences. Ensure it offers you what you’re looking for.
Things to keep in mind
Purchasing any business will be a significant monetary investment. Remember though: if you find the right franchise business for you, you can expect a greater chance of success than if you strike out on your own.
It’s also essential that you consider how much control and individuality you want in your business. Unlike an individual business, a franchise business represents the main franchisor brand, so each store needs to present itself the same way to customers. It needs to offer the same quality of product and service, the same messaging and the same customer experience.
This means your franchise agreement will require you to operate to the franchisor’s standard procedures. As a result, there’s not much room to change the way your business operates. But the advantage is that you don’t need to: tried and tested processes are already in place to ensure your business succeeds.
Find the right brand
There are many advantages of franchising, but like with any other investment, it’s essential to do your research and find a brand that works for you.
Want to find out more about the advantages of becoming a Red Rooster franchisee?
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