The Benefits of Owning a Franchise
If you were asked to list five franchises off the top of your head, you’d be able to do it without hesitation. Your list could cover anything from retail chains like ACE Hardware or 7-Eleven to fast food franchises like McDonald’s or Taco Bell.
For those looking to start a business, opening a franchise offers several benefits that locally owned or independent businesses can’t always provide. A franchise name, like Dunkin’ or Planet Fitness, is always at the forefront of consumer’s minds when searching for products or services, which then ensures instant recognition and business upon opening.
So, if you are looking to start a business, here are some benefits to owning your own franchise.
Mass Appeal
In the US, every town no matter the size is likely to have a franchise of some kind mixed in with other businesses. Even in the smallest of towns in rural Indiana, you will find a Subway or Dollar General.
Purchasing a franchise comes with an existing customer base and brand awareness. Consumers tend to trust and shop at brands they already recognize as they know exactly what to expect. This also makes it easier to attract employees and talent.
Proven Success
When opening a franchise, understand that you are not alone at any point in the process. The beauty of a franchise is that the groundwork has already been laid, and there is additional support for a successful business model already in place.
A franchisor provides all the brand standards, operating systems & manuals, marketing plans, and quality control guides. Since the franchise is already an established brand name, you are mitigating the risk of failure by having a built-in support network and proven systems.
Location
According to the International Franchise Association (IFA), most franchises are seeking to have a presence in the top 350 markets in the United States. It makes sense with a higher population that there would be a larger customer base, but there is a second market to consider.
Lower populations offer a smaller market, but those consumers are often under-served and looking for larger businesses to come in and fill in the gaps in the community. Not every business will work in a smaller market, but if a franchise can fulfill a need, it will most likely be welcomed and supported in the community.
Scale
Franchises are constantly popping up all over. The IFA Economic Impact Study found that franchising directly created 8.2 million jobs for Americans. With over 775,000 establishments across the US, there’s not only a local impact but a national one.
And even on that smaller scale, franchises still present a positive impact. Of those 730,000+ franchises, 16,800 are located in Indiana and provide over 190,000 Hoosiers with jobs. Thus, the scale of franchises simply can’t be beaten, and the ever-growing market could come to a place near you in a matter of months.
Many franchises are looking to make their way into Indiana, and some have even originated in the Hoosier state. Texas Roadhouse, despite its name, was actually first opened in Clarksville, IN. Other local franchise venues that you could expand beyond Indiana and the Midwest include Jack’s Donuts, Schoop’s, and Pizza King, among others.
Thus, opening a franchise has many benefits and can be a lower risk than starting from scratch. Keep in mind that the decision to embark on opening a franchise should always favor your overall business and financial goals. Find a company that aligns with your business and work ethics and has a good track record for supporting new owners.
