Why a Franchise?
You're dissatisfied with the way you're being treated by your company. Perhaps you're
an executive who has been displaced. You realize that your labors have been creating wealth for
others but not for yourself. You've had the idea of owning your own business as a solution to these
and other issues but you've heard all the horror stories about the failure rates of independent
businesses. A franchise may be the answer for you.
A Business Strategy
Franchising is nothing more or less than a business strategy for getting and keeping customers. It is
a marketing system for creating an image in the minds of customers about the company's products
or services. It is a method for distributing products and services that satisfy customer needs. Franchising
is a network of interdependent business relationships that allows a number of people to share a brand
identification, a successful method of doing business, and a strong marketing and distribution system.
Safety
For the franchisee, franchising is about risk reduction and safety. You give up the total freedom
associated with being an "independent owner" to become part of a group of people committed to
building a brand and dominating markets using a common, tested operating system. You don't have to
guess about the most effective way to build your business, there is a specific system to use.
Proven Systems
The franchisor provides a proven method of doing business (the operating system), a brand or
trademark that will have value in the eyes of the customer based on execution of the operating system,
and initial and ongoing support so you won't have to reinvent the wheel to be successful. You provide
capital to expand the brand faster than the franchisor can by itself and management talent to run the
business and execute the operating system.
Predictable Results
A franchise system should also provide group buying power to cut your operating expenses, faster
growth due to tested marketing programs, predictable results based on your adherence to the
operating system and less risk of your invested capital. The trade offs for you are the fees you pay the
franchisor for the operating license and the restrictions you will deal with on the method of operating
the business.
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