85% of the businesses that operate under the franchise model continue working after the fifth year of life.
Although the franchise sector has been growing in recent years to become a consolidated business formula, when we talk about venturing with this option, not everyone knows the advantages that it involves.
Many times, those who consider being their “own boss” are hesitant to start their business journey as part of a franchise because they do not usually consider it as their own business. However, it is a business model in which the franchisor and the franchisee benefit. The first, for the support found in the entrepreneur to grow their brand, and the franchisee, for the training they receive before starting their activity, the support and advice throughout the business process, besides the possibility of being part of a recognized and successful brand.
Benefits of starting with a franchise
-You use what already works: You have the possibility of allying yourself with a brand of proven success, taking advantage of its history, communication and marketing tools, as well as products and services recognized in the market, guaranteeing a more productive entry into the commercial sector.
-You receive continuous advice: The franchisor transmits all the know-how and experience in the business so that you can operate it technically, financially, and commercially successfully.
-You secure your investment: Investing your money safely and intelligently in a previously proven business guarantees a quick return on investment, generating profits from the first years of operation. In addition to the fact that many franchises offer financing plans that fit your business plan.
However, choosing the right franchise requires much more than just opting for a popular brand name. You should also take into account:
1.- Identify your strengths and weaknesses: Choose a business that matches your interests and skills, not just one that you would be a consumer of.
2.- Stability VS Freedom: Acquiring a franchise implies following rules established by the franchisor. Would you be willing to sacrifice freedom of decision for financial stability?
3.- Consult an expert: Before signing a contract, seek a lawyer to review each clause and explain how the business relationship would work.
4.- Study the franchise offer circular: Review the sections on litigation, open and closed units, finances, etc. Evaluate the data with your trusted lawyer and accountant.
5.-Ask if you will receive support: It is important that you know if you will receive continuous training and if you will be able to go to the franchisor at any time you require support.
6.-Develop a business plan: Explore industry trends. Every company, even a franchise, must be governed by a business plan to guarantee its success.