If you thought about opening your small business, then clearly interested in existing options by franchise. In a crisis financial situation, the franchise has become a kind of "lifeline" for many entrepreneurs who want without high risk invest. But is it safe , what are the pitfalls and what benefits will it give? More details are in exclusive material from CitySites.
When you open your business, any businessman is busy looking for an interesting idea. Franchising offers get rid of this headache and use a ready-made model: in as a result, everyone remains in the black. At first glance, there are no flaws in the scheme: a new partner gets a ready-made business, and the franchise owner - an extension your network. Next, collaboration begins, from the coherence of which success depends. Let's look at the main disadvantages and advantages franchise work.
Key disadvantages of franchising small businesses
By browsing franchise catalogs you can see many ads in which franchisees are not required. This is not suitable for everyone. franchised models. Most of them when buying a franchise for business of any scale, definitely there are requirements and should be. TO For example, for the franchise of a city site CitySites, this is free time for the project, willingness to create a staff not less than 5 people, rent an office and purchase all the necessary equipment. Therefore, when choosing a franchise, clearly specify:
- Can I do business alone?
need Be ready for teamwork. Take a closer look at yourself: you are good supervisor? If in doubt, include a decent staff member. Deputy.
- Is there a training program?
how as a rule, they promise to teach everything and everything. But if the development of the project is not worth it in place, then a huge plus is the availability of monthly webinars and constant informational support of the franchisee and a systematic approach to staff development to upgrade existing employees.
- Do I need an office?
For some franchises, an office is required, as well as its location.
- When will the project become self-sustaining?
not forget that miracles do not happen. Half a year, a year or more - average the payback period of franchises that are stable in the market. Promises paybacks within a month promise, as a rule, inexpensive and low-turnover projects. The larger the project, and the level of its earnings, the longer, the period of reaching self-sufficiency, but income is much higher.
- How reliable is a franchisee company? What are your development plans?
better all told by numbers and history. If the company exists for quite some time in the market, look at the growth of its success. Just measure with what They promise you.
- Take a look at how the franchise owner’s office works
If there is an opportunity - take a visit personally, or ask for a photo. The presence of corporate design and the appearance of the office shows Is the company's work team really effective? It seems to be a trifle, but believe me, having a corporate spirit of employees means a lot.
Except of this, the drawback is the dependence on strategic thinking franchise owner. Of course, franchisees can influence this strategy and thinking, but you need to understand what the last word for by the owner. An excellent analogy is an autonomous republic within the country.
Franchise Benefits for Small Businesses
how was mentioned at the beginning of the material, one of the main reasons for the popularity franchises are the legal use of an idea. You are absolutely painless Develop a working business model and make a profit. Pay for it Royalty -% of the turnover, or a fixed price. Everything is very simple.
We highlighted the main advantages of creating a small franchise business:
- Price
Typically, the cost of a franchise project is several times lower than the development of its counterpart. Strong advantage.
- Training
All happens for the first time, including creating your own business. Investing in project, you and the franchisor become dependent on each other. Therefore, You will definitely be brought up to date. CitySites franchise, for example, involves training not only the franchisee, but also all of him employees.
- Debugged earnings scheme
instead taking risks in search of a new source of income, you, as usually get all the necessary data in order to start make money today.
- Continuous help and support
always it’s not good to solve problems yourself. Better yet, with an experienced partner, which will always help. Sometimes a franchisee company generally insures situation, and completely oversees the work of the partner and does not allow the commission critical errors.
- Opportunity to do interesting business
Due to the lower price, you can afford areas that previously seemed inaccessible.
- This is a READY business
Why waste your time developing? Take it and work! It also means a significantly lower chance of failure.
- It's profitable
you You can always ask how much others earn. franchisees, and what they did for this. Chat with other partners personally - whoever however a person has already tried to create a project on franchise tells about all the nuances. At first glance, you can look at old projects - if they successfully exist, then they are profitable. Obviously, unprofitable enterprises do not exist for a long time.
Let's summarize some result . Is it worth it to mess with a franchise business?
Of the minuses : franchise projects may be too high requirements for the entrepreneur. You need to be prepared to do a good job on your success. Also, you depend on the strategic thinking of the owner franchises.
Of the pros: any starting a small business is risky. And the help of an experienced A partner who is interested in your success is a big bonus. Besides of this, the purchase implies the transfer to use not only the enterprises, but also all debugged business processes. They will also teach everything in bargain.
Anyway, the benefits are much more powerful . No need to make mistakes that have already been made. You are moving along a well-trodden road, and not in the thick grass in the middle of the forest.
Instead of an epilogue
Open small franchise business - a great solution in modern business realities. Safe, inexpensive, supportive and profitable. we recommend learn more about the CitySites franchise - This is a franchise to create a city site. At the time of writing, This is more than 8 years on the market and more than 100 successful sites. Leave a request franchise, and we will tell you in detail about all the nuances of work.