A question often asked is
“Why would I take a franchise and pay firstly a ‘joining fee’ and then a monthly royalty to do something I could do myself?”
The answer – because the chances are if you start up yourself you are likely to fail whereas if you buy into a recognised franchise you will more than likely succeed – simples!!
The long running bfa NatWest survey has consistently shown that over 90% of franchisees are still in business after two years whilst in the same period some 80% (yes 4 in 5!) independent start-ups fail.
Franchising is in essence a licence to operate someone else’s PROVEN business system and to this end franchising is neither an industry in its own right nor in fact a business.
It remains one of the fastest growing and consistently successful methods for distributing products and services to the marketplace – essentially it is a marketing concept.
A crazy mixture of conformity and individuality franchising combines the very best element of big business and small operations and the phrase ‘in business for yourself, not by yourself’ really does capture the soul of franchising.
Remember, if you started up your own business YOU would be responsible for ABSOLUTELY EVERYTHING from selling and marketing, to researching and developing new products to sourcing the best suppliers to doing the accounts, chasing debt – the list goes on.
In my experience it is often not the business idea that causes start-ups to fail but the sheer enormity of the task of running the business.
In a franchise the franchisor provides the franchisee with experience, business know-how, operational methods, marketing tools, sales training, procurement advice and of course ON-GOING SUPPORT as well as a proven business system, trademarks and use of the brand.
There is a quote I’ve used previously from the book ‘Growing Pains’ that really does highlight the benefit of a franchise over a start-up business
“Running your own business is about as easy as navigating unchartered waters in a leaking rowing boat with an inexperienced crew whilst surrounded by a school of sharks!
The crew might be glad to know that others before them have made the voyage successfully and to hear and learn of the lessons that other voyagers (the franchisor) learned in the process”.
The magic of franchising is that it combines an individuals’ own abilities, drive, determination and ambition with the proven business systems, resources, intellect and ambition of a corporate body.
So to mind there is no argument – franchising reduces the risk of the investment and provides the structure to bring success to people from any and all walks of life.