Why Choose A Franchise Over Business?

on Dec 18, 2020 | 13317 views

Choose a franchise over a business There are very few people who have the natural skills or expertise to be perfect at all aspects of running a successful business, this is where the franchisor’s experience comes into play.

Brands that offers franchise provide a complete a structure to launch , operate and grow a business.In short, the successful franchisor provides the entire framework around which they have built the business . Franchisors usually create comprehensive manuals explaining how to operate and training programs for the franchise owners that cover marketing, operations, accounting, technology and other areas that are important for the particular business model. These efficiencies are designed to help franchise owners to earn more by spending less time and effort than otherwise would be required to open and operate a similar business on their own.


The franchise organization model provides the franchisee the ability to succeed under a common brand and share the advantages of a larger group of business owners. Though a franchise is independently owned and managed, all franchisees share in the benefits of the organization through the support and oversight of the franchisor including:

Being the boss of your own business and making day-to-day decisions yourself which are guided by the experience of a successful business enterprise.

It provides an advantage of  well recognized and proven service marks, trademarks, proprietary information, patents and/or designs.

Training is provided from successful business operators. 

It has a lower risk of failure and/or loss of investments as compared to starting your own business from scratch.

It helps you to become a part of a uniform operation i.e, all franchises share the same interior and exterior physical appearance, same product, same service and quality etc.

The franchisor provides operational support,before and after the launch of your business venture, in areas such as financing, accounting, employee training and operational procedure.

It provides an opportunity to enhance your management skills by owning an established business model that’s very difficult to experience in most employment situations.

From the franchisor’s perspective, this collaboration:

It Provides the franchisor a way of rapid expansion

It helps to Spread the brand messaging and awareness over a large chain of franchise owners.

Allows the franchise owner community to grow due to a duplicable system and support

Features increased buying power for goods and services due to higher volume with suppliers

Enables new products and services to be developed in the field with more testing and input

It Provides a strong cash flow to the franchisor to help in the overall growth of the system

It can finance the brand recognition effort to grow nationally and globally

The freedom factor

Most individuals find the three common elements when they choose a franchised business:




These three factors are important for a various reasons and seem to be common factor when people seek a new business. Flexibility has always been a great deal for entrepreneurs who give up the stability of a “real job” for the independence that comes by owning the busin amd being the own boss. Money, or income, is the second and the most important factor. 

Status is a wide category that involves not only names and position, importantly, the feeling of purpose one has and being a part of something significant/important.

Owning a franchise can provide you with all these elements if you operate the business finely and manage your time and resources accordingly .

Happy franchise owners make more money

It’s a saying that if you love your work,no one can stop you from being successful and there is a lot of truth in this statement. If you can help yourself choose a franchise that really fits your passion, you’ll be much happier, which in turn will result in higher profits.

Some franchise organizations have suffered failure because they weren’t aware of this reality during the fast growth stages.

The primary advantages for most companies entering the world of franchising are capital, speed of growth, motivated management, and risk reduction, etc.

1. Capital

The most common obstacle on the way of expansion is lack of access to capital. Even before the demonetisation of 2008-2009 and the “new normal”, entrepreneurs often found that their growth goals were obstacled by their ability to fund them.

The primary reason most entrepreneurs switch to franchising is that it enables them to expand without the risk of debt or the cost of equity. First, as the franchisee provides all the capital that is required to open and operate a unit, it allows companies to expand using the resources of other people and by using this money, the franchisor can immensely grow unaffected by debt.

Moreover, as the franchisee -- not the franchisor -- signs the lease and commits to various contracts, franchising allows for expansion with virtually no contingent liability, thus greatly preventing the risk to the franchisor. Therefore, as a franchisor, not only you need less capital to expand, but your risk is largely limited to the capital you invest in developing your franchise company -- an amount that is definitely less than the cost of opening one additional company.

2. Motivated Management

Another obstacle faced by many entrepreneurs wanting to expand is finding and retaining good unit managers.Therefore, a business owner spends a lot of time and energy in finding and training a new manager, and then they leave or, worse yet, get hired away by a competitor.As hired managers are only employees who may or may not have a genuine commitment, emotional attachment to their jobs, therefore this makes supervising their work from a distance a challenge.

But franchising allows the business owner to overcome these problems by substituting an owner for the manager. No one is more motivated than someone who is materially invested in the success of the operation. Your franchisee will be an owner -- often with his life’s savings invested in the business. And his compensation will come largely in the form of profits.

3. Speed of Growth  

Every entrepreneur I've ever met who's developed something truly innovative has the same recurring nightmare: that someone else will beat them to the market with their own concept. And often these fears are based on reality.

The issue is that opening a single unit takes time. For some entrepreneurs, franchising is the only option to make sure that they capture a market leadership position before competitors takeover their space, because its the franchisee that performs most of these tasks. Franchising not only allows the franchisor financial leverage, but also allows it to leverage human resources as well. Franchising allows companies to compete with much larger businesses so they can excell markets before these companies can respond.

4. Staffing Leverage

Franchising allows franchisors to function properly with a much effective organization. Since franchisees will assume many of the responsibilities otherwise handled by the corporate home office, franchisors can grasp these efforts to reduce overall staffing.

5. Ease of Supervision

As per the managerial point of view, franchising offers other advantages as well.

The franchisor is not responsible to manage the franchise units on a day to day basis. At a micro level, this means that if a leader or member of the crew falls sick in the middle of the night, they will be  calling your franchisee -- not you -- to inform and  it's the responsibility of the franchisee to find a replacement or cover up their shift. And if they choose to pay salaries that aren't in line with the marketplace, employ their friends and relatives, or spend money on unnecessary or frivolous purchases, it won't impact you or your financial returns. By eliminating these responsibilities, franchising allows you to direct your efforts toward improving the big picture.

For more exciting franchise-related information and the best franchise opportunities in India, kindly register at https://www.franchisebazar.com/entrepreneur-registration and for further help give us a call on +91-9844443200

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