Benefits of Franchising - Mercury Franchise School

Imagine you could grow your health and social care business with the help of other entrepreneurs?

Franchising is the ultimate teamwork – A way of sharing everyone’s talents for the benefit of the wider franchise community.

No matter what stage you’re at in your business journey, letting others in can enhance the experience of running a business or developing it.

By welcoming franchise managers who operate individual units, franchisors can concentrate on improving their service offering knowing that their business and reputation are in good hands.

Buying a franchise instead of starting a business from scratch means you have access to a proven strategy for success as well as industry expertise and knowledge, even if you’re brand new to the sector.

BENEFITS OF THE FRANCHISOR:

Scale your business without taking on debt

Scaling your business the traditional way means borrowing money or getting someone to invest in your company so you have enough capital to expand into new areas. This means you’re either destabilising your finances or relinquishing some of the control over the decisions you make for your company.

Franchising is often described as growing your business using other people’s money and this can be true.

The initial cash injection from each franchise is used to start and develop a new area that represents your brand with minimum financial risk.

Reach new areas with local knowledge

When you take a risk in moving your already successful business to a new area, you’re an outsider coming in. With a franchisee running the new outlet, they have on-the-ground knowledge of their location and the people who live there, so they’ll be able to pitch your service offering in a way that makes sense to potential customers.

Franchisees become part of their local communities, serving local people, and building up a reputation with other people and businesses within their area.

You’re not responsible for operating the franchise unit

When you choose to build up your business organically, one unit at a time, everyone in your team is looking to you to make it work. The more you grow, the more stress you’re adding to your plate and any failure will have a direct impact on your existing business. Franchises, on the other hand, are independent entities. You’re responsible for training and providing tools to the franchisee, but it’s up to them to make it work.

Develop regular income

Not only do you get a lump sum investment in your business when a new franchisee signs up, but you also have a passive income in the form of the monthly management service fee. This is either a fixed fee or a percentage of that month’s turnover or profit. This means you can go on holiday for a fortnight and know your business is still making money.

Win back your time

As your franchise grows and develops, you can start to put a structure in place to build your head office team. This will then enable you to work around your lifestyle, and not the other way around. Franchising, if done correctly, helps you to develop and grow a business that works for you.

BENEFITS OF THE FRANCHISEE:

Take control of your employment

Job security has got many of us hooked, but it’s running your own business that gives you full control over your work life.

In most jobs, the only way to make more money is to get a promotion, but that can be dependent on so many factors: Are there lots of people on your team wanting the same promotion? Does your boss like you? Have you got the right qualifications?

When you buy a franchise, you give yourself the promotion you know you deserve, and you’re rewarded for your efforts when you see the bottom line each month.

Work in any sector you’ve ever dreamed of

A lot of franchisees join companies in sectors they’ve never worked in before. You can easily adapt to window-cleaning and oven-cleaning, but even more complex companies, like children’s play centres or internet services, can teach you how to run your business. Think of it as a great opportunity to move into an area you’ve always fancied working in, but felt under-qualified.

This is an in-exhaustive list of the possible benefits of franchising for both franchisee and franchisor.

Be your own boss

Owning a franchise unit means you get to decide what time you start work and when you can take a holiday. You don’t get that flexibility in normal workplaces.

Low-risk

Half of all startups fail in the first year, but with a franchise, you’re much more likely to succeed. Franchises are businesses that have already been successful in other places so you know they can work in your area too. With a franchise, you can get bank loans and other credit a lot more easily than if you’re a startup as the lender knows that a franchise business tends to work.

Full training

Your franchisor will provide full training in addition to other tools, systems and resources so you know exactly how to serve your customers and operate your business.

Full support and guidance

Once you’ve finished your training and you’re ready to launch, the franchisor should give you extra support while you build up your business and beyond. Their job is to support you by answering your questions, providing extra training, helping you prepare for audits and inspections and marketing your brand nationally.

Retain benefits of being part of a large organisation

Even though you’re your own boss and you’re running the franchise independently, you’re still part of a large franchise network, which means that purchasing costs can be reduced through buying in bulk.

Work from anywhere

If you want to stay at home and spend more time with the kids, or if you just don’t like cold weather or commutes, then owning your own business lets you work where and how you like. 40% of franchises can be run from home. Other franchises, such as mobile or courier franchises mean you can work in your vehicle or in your customer’s home: no need for office premises.

If you’re interested in finding out more,
why not enrol in one of our courses?

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