So, what exactly is a Franchise?
Franchising is a method of distributing products or services. At least two levels of people are involved in a franchise system: (1) the Franchisor, who lends his trademark or trade name and a business system; and (2) the franchisee, who pays a royalty and often an initial fee for the right to do business under the Franchisor's name and system. Technically, the contract binding the two parties is the “franchise,” but that term is often used to mean the actual business that the franchisee operates.
The first question you are asking yourself is, "why invest in a franchise when I can probably start my own business from scratch"?
There is no doubt that many people are completely capable of starting their own window cleaning business. There are many manuals for sale on the internet, and even some YouTube instructional videos. Starting a business is not an easy task, and maintaining and growing a business is even more challenging. Research shows that "95% of start-up businesses fail in the first 3 to 5 years", according to the U.S. Chamber of Commerce...95%!
On the contrary, franchised businesses show a 97% success rate after 5 years!
In 1996 the International Franchise Association commissioned a Gallup Organization survey, of which 64% of franchisees said they would be less successful in the same type of business on their own, and not as part of a franchise system.
There are many advantages of investing in a franchise such as:
So now that you know WHY you should invest in a franchise instead of going it alone, the next question you should be asking is...What type of franchise should you invest in?
CLICK HERE TO FIND OUT WHY WINDOW CLEANING IS A CLEAR CHOICE (PUN INTENDED)
Franchising is a method of distributing products or services. At least two levels of people are involved in a franchise system: (1) the Franchisor, who lends his trademark or trade name and a business system; and (2) the franchisee, who pays a royalty and often an initial fee for the right to do business under the Franchisor's name and system. Technically, the contract binding the two parties is the “franchise,” but that term is often used to mean the actual business that the franchisee operates.
The first question you are asking yourself is, "why invest in a franchise when I can probably start my own business from scratch"?
There is no doubt that many people are completely capable of starting their own window cleaning business. There are many manuals for sale on the internet, and even some YouTube instructional videos. Starting a business is not an easy task, and maintaining and growing a business is even more challenging. Research shows that "95% of start-up businesses fail in the first 3 to 5 years", according to the U.S. Chamber of Commerce...95%!
On the contrary, franchised businesses show a 97% success rate after 5 years!
In 1996 the International Franchise Association commissioned a Gallup Organization survey, of which 64% of franchisees said they would be less successful in the same type of business on their own, and not as part of a franchise system.
There are many advantages of investing in a franchise such as:
- The business model has been tested. You are investing into a company with an established operational system, a locally, regionally, and/or Nationally recognized brand, and a proven track record.
- The company has already done the research, made and learned from mistakes, and has developed a vision for the company. Why reinvent the wheel? With a proven system, you come in ready to make money instead of taking the first few years starting from scratch.
- Consumers trust franchises. They feel more comfortable doing business with a familiar, trustworthy, and reliable, brand.
- Franchises set high standards and expect them to be followed in the system. This also increases the consumer's trust and comfort with the franchise brand.
- Ongoing support and support system. Your franchisor and fellow franchisees are all vested in your success. Success for one is success for all.
- Training is a huge advantage of investing in a franchise. Not only will a good franchise teach you the technical requirements, but it will also provide business training such as marketing, customer relationship management, legal & financial business requirements, and strategic planning.
- The American Dream...Owning your own business! Although there is a system and guidelines you must follow, you ultimately are an independently owned and operated business.
- Predictable start-up costs. You will have a fairly accurate idea of how much capital you need to invest to get started. No surprise expenses that set you back for months at a time.
- Collective buying power. Some franchises can provide you with discounts on equipment and services through vendors they have established relationships with.
- Financial assistance. Banks are very hesitant to give loans to start-up businesses, especially in these times. Franchises are often easier to get approved for financing, since they already have a proven track record. Franchisors sometimes offer assistance with financing either through a third party or in-house financing.
So now that you know WHY you should invest in a franchise instead of going it alone, the next question you should be asking is...What type of franchise should you invest in?
CLICK HERE TO FIND OUT WHY WINDOW CLEANING IS A CLEAR CHOICE (PUN INTENDED)