6 Advantages of Franchise Business

[Suba]

Franchise Business is a form of cooperation between two parties in which the franchisee has the right to use the trademarks, products and business operational systems provided by the franchisor.

Franchise business scheme
The easiest business idea is to buy a franchise, because it is well known, so the possibility of success is very large. Franchisees only need to apply the same operational standards or guidelines. For example, if you buy a coffee drink brand, you will get it in full, starting from the production package, trained employees, raw materials, promotional media, outlet layouts, etc. Another example of a franchise business is Starbucks, Mc Donalds, Pizza hut, mini market, goods delivery etc.

One of the disadvantages of a franchise business is that the franchisee must pay several types of fees, including:

• Franchise fees/license fees and rights are costs that must be incurred before the business is operated.
• Royalty fee franchise fees that will be incurred after the business is running, generally paid monthly which is calculated from the percentage of sales.
• The cost of raw materials or inventory must be purchased from a supplier appointed by Franchiso.

In general, the franchise business is very profitable for both goods and services businesses, here are some of the advantages if you buy a franchise business, as follows:

1. Business can be operated immediately
You don't need to hesitate to run a franchise business, because everything will be arranged and guided.

2. Professional Partners
You don't need to think about how to manage your business and finances because all systems have been formed and will run smoothly.

3. Business Support and Training
In general, training will be provided both for marketing and how to run a business.

4. Free Promotional Media
Well-known franchise brands will make promotion easier, Franchiso already has a good strategy.

5, Running Business Easily
The franchisor wants you as a franchisee to be successful and profitable, so they will try to fully support you.

6. High Success Rate
As a franchisee, you don't need to be afraid of loss, because almost all franchise businesses are successful, because professional support, management and a well-known brand will greatly reduce the risk of failure.

 

[Mika]

The major benefit of running a franchise business is you do not have to work hard to build your brand as the business is already a well known brand. This eliminates marketing cost. However, this can also be a disadvantage because you will have to pay money juist for using a business's brand. Interestingly, you can also create your own business,. build it into a popular brand and instead of expanding your business as your own branches, you can try selling your franchise. THis is a good strategy to make a lot of money from your existing business without making additional investment.

 

[Jasmine]

There are several benefits of franchise businesses. Some of the common benefits are:

1. Established brand recognition and reputation. No need to work on building a brand for the business.
2. Access to proven business models, products, and systems, no need to work on new ideas
3. Training and support from the franchisor
4. Access to marketing and advertising resources
5. Potential for lower startup costs and reduced risk compared to starting a business from scratch
6. Established supplier and vendor relationships
7. Ability to leverage the purchasing power of a larger organization
8. Potential for higher success rates due to the franchisor's experience and knowledge
9. Potential to benefit from national or global branding and marketing efforts.
10. Existing customers for the business.

 

[Hasan12]

1. Established brand recognition: Franchise businesses often have a well-established brand and reputation, which can help attract customers and increase visibility.
2. Proven business model: Franchises typically have a proven business model and track record of success, reducing the risk of starting a business from scratch.
3. Training and support: Franchisees receive training and support from the franchisor, which can help with everything from setting up the business to running day-to-day operations.
4. Marketing and advertising: Franchise businesses typically benefit from collective marketing and advertising efforts, which can save money and increase exposure.
5. Access to resources: Franchisees often have access to resources, such as bulk purchasing power, that can help lower costs and improve profitability.
6. Increased likelihood of success: Studies have shown that franchise businesses have a higher rate of success compared to independent start-ups, making it a potentially safer investment option.

These are just a few of the many advantages of starting a franchise business. However, it's important to carefully consider both the benefits and the responsibilities before making a decision. Before investing in a franchise, you should thoroughly research the franchisor and the franchise opportunity, and consult with legal and financial advisors.