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4 Ways Franchising is Different from Traditional Business Ownership
One of the American dreams that many Americans have in common is to own their own business. If you’ve decided that you want to run your own business, then there are a few options to consider that you may not have been aware of.
First of all, you could go about it the traditional way by building your very own business from the ground up. However, another option exists — franchise ownership. The following are four ways in which franchise ownership differs from traditional business ownership.
Topics of Discussion
- Franchises Come with a Proven Business Model
- Franchises Provide Owners with Support
- Franchises Benefit from an Established Brand
- Franchises Are Not as Unpredictable
1. With a traditional business, you have no idea if the product or service that you plan on providing will be accepted by customers. Even if your products or services are actually effective and considered to be of high quality, your ability to market them properly to the right audience may not be adequate. A franchise owner will have a complete business model laid out for them that’s been proven to be effective. There will be a demand for the established product or service, as well as a proven marketing plan that you can simply follow without fear of failure.
2. When you become a franchise owner, you won’t be on your own. You’ll have the support of the franchise, which will typically provide all kinds of resources for you to take advantage of, including training on how to run your franchise and help with marketing and hiring. Traditional business owners don’t have this kind of support. In fact, they have to go through trial and error constantly as they get their business up and running. It’s sink or swim — and for many it’s sinking, because without any kind of support, they’re simply in over their heads.
3. One of the biggest challenges facing a traditional business owner is that nobody knows about their company or their products (or services). This means that they’ve got a huge amount of work ahead of them in terms of building their brand identity and increasing brand exposure. This requires a lot of time and resources to accomplish — and if they fail to accomplish this, their business will fail. As a franchise owner, the brand will already be established. A business that offers entrepreneurs the chance to invest in a franchise has to have some sort of success in order to do so. This means that it already has an established brand identity that people know about, as well as an established customer base.
Disclaimer: This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for information purposes only. Currently, the following states regulate the offer and sale of franchises: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. If you are a resident of or want to locate a franchise in one of these states, we will not offer you a franchise unless and until we have complied with applicable pre-sale registration and disclosure requirements in your state. Franchise offerings are made by Franchise Disclosure Document only.
