Buying a franchise is a good option for anyone who wants to run their own business without the risk of starting a company from scratch. Because they have bought into an already-established brand, franchise owners retain a level of independence while benefitting from the support and security of a larger business network.
A report conducted by the British Franchise Association in 2018 found that less than 1% of franchises fail each year, demonstrating the stability that franchising can offer as a business model. With that in mind, here are just a few of the advantages that buying a franchise offers to aspiring business owners.
Financial Security
One of the main upsides of becoming a franchise owner is the security it offers you – your business is less likely to fail if it has the financial backing of a well-known brand that stands to benefit from your success. Your franchisor should be able to connect you with finance providers who can provide funding for the initial franchise fee, if you need it, and because of their low propensity for failure, franchises are more likely to be approved by banks for a loan or overdraft.
Established Systems
Franchises also offer the advantage of an internal support system, providing you and your workforce with access to training schemes designed to aid all areas of your business, from sales and marketing to account management. It’s in your franchisor’s interests to give your business all the help it needs to succeed, so you won’t be left on your own when you’re in need of advice – ideal if you have limited business experience.
Existing Network
Established brands will already have their own proven methods of working, which can be carried over to your franchise with a limited chance of failure compared to a completely new set of ideas and business techniques. Your business will have instant access to many of your franchisor’s business relationships, reducing the need to spend time struggling to forge relationships as a new brand.
Brand Credibility
The importance of credibility can’t be ignored in business – an established name will instil confidence and loyalty in your customers, whereas starting out as a new business means developing a good reputation from scratch. Any advertising and promotion your franchisor carries out will have a positive impact on your company.
Multiple Opportunities
There are almost 1,000 active franchise systems in the UK, operating across multiple industries including fast food, plumbing, accountancy, education, and many more. Franchise opportunities range from full-time to part-time, and there are plenty of home-based and low-cost options available.
Summary
To conclude, there are many advantages to invest in a franchise with some of the key aspects being financial security, brand credibility, and operating within an already well-established network. Here at London & Zurich, we encourage those with an entrepreneurial spirit to embark on the incredible journey of establishing yourself as a business owner. We work alongside many franchises, providing a specialist payment system to take their businesses to the next level.
If you require any further information on the benefits of franchising, or if you wish to enquire about London & Zurich’s specialist payment services for franchise businesses, please get in touch today.
