For many people, the “American Dream” is the idea of owning their own business, being their own boss and taking control of their life. Well, a franchise is a great way to do just that. Owning a franchise gives the buyer some unique advantages and in the current market some of the best new franchises are as diverse as a High School gym during a pep rally.
Well, what exactly is a franchise?
A franchise is an independently owned and operated retail business that is being backed by and marketed by a “parent company.” This agreement allows the buyer of the new franchise unit to be a student and the parent company is kind of like a mentor.
Some of the biggest advantages to buying a franchise include…
- The reputation of the parent company. These companies usually spend years build trust in a community. As a franchisee you buy that reputation, and the community will already be willing to trust you, which will free you up to focus on your business.
- There is already a proven system of operations in place. The parent companies have perfected the way that the business should operate, so you will not have the burden of learning through trial and error. The large corporation has already done that for you.
- The corporations care deeply about your success. You might be thinking, “I’m supposed to believe that these money hungry multi-billion dollars a year in sales corporations are going to care about me?” Well, yes. You would be representing them and their product. If you fail, so do they by losing a customer base that they have tried for years to get to remain loyal.
- They have excellent support. They want you succeed so they have instituted the tools you need in order to do so. More so, they are there to help when you have a crisis. Remember, you are representing them, so they need you to do well and they will do what it takes to make sure you do.
“It is starting to sound too good to be true. What’s the catch?”
Well, as with any business proposition, there are a few disadvantages.
- If the parent company is very large, it can be hard to get approved to open a new unit. If they already have a saturated market, it is in their best interest to focus on the existing units, than to open a new one. You can, however, get around this. You could buy an existing unit, which has its own advantages. This way you can see the profits that the business makes, the way it operates and exactly what you are getting yourself into.
- There are a lot of rules to follow. This is especially true if the parent company is a very large corporation (Starbucks anyone?) This cannot, however, be seen as a true disadvantage. These rules are in place to ultimately help your business succeed, so really, they are helping you out.
- It could be hard to be approved to get the branch. These large companies get thousands of inquiries for franchises a month. That means there is a lot of competition for the buyer. You have to be aggressive and play up your strengths. Or you could go with a smaller company, which has its own advantages, such as, much less market saturation.
On that last note, there are many new business opportunities every year; some of the best new franchises have yet to be discovered. If you are going to invest a substantial amount of money into a franchise, it is best to go with one that is new. Being weary is not a bad thing! If the company is very new at franchising, watch it for a while. It won’t hurt you to take your time. It is best to get in right before the snowball occurs, you know that moment when you just heard about it and then there is one on every corner (Starbucks, anyone?).
Here is a list of the top 2008 best new franchises, as reported by entrepreneur magazine:
- Instant Tax Service
- Massage Envy
- Snap Fitness Inc.
- System 4
- One Hour Heating and Air Conditioning, LLC.
- Super Suppers
- Mathnasium Learning Centers
- The Growth Coach
- Play N’ Trade Franchise, Inc.
Remember, franchising is the best kept secret of the 21st Century!
Edward Dean is an accomplished website developer and author. To learn more about what-is-a-franchise-and-is-it-best-for-you [http://computerinformationdisplaysystems.info/Home_Page.html] visit Sports Bar Franchising [http://computerinformationdisplaysystems.info/Home_Page.html] for current articles and discussions.
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