Here Are The Advantages Of Franchising Franchising is becoming more and more popular nowadays. Their are more and more people that are starting their franchise. Studies shows that the success rate of franchising is much higher than starting your own business. Franchising has a lot of advantages. Here are the advantages of franchising: A. It has an established business system
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The main advantage of franchising is that it has an established system. If the return of investment is high, then business owners start expanding and franchising their business. Franchising is the duplication of a proven and well established business. The idea of franchising is simple.
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Franchise owners has already proven that their business is successful, this is actually the main advantage of the franchising, since people now have the chance to replicate their success. They share their business strategy. B. It already has branding and even customer awareness One factor that is beneficial to the success of a business is the brand name. It is not easy to start your own business, since the brand name is not yet known and established. This is not the same with franchising because their brand name is already established and known to the public. Even smaller franchise brands can be successful since people know that franchises are part of a bigger group which means that they will not just fail or close. C. They can easily get approved for financing Fully established franchises can easily get financing from banks. However, most banks also approve franchise start ups since they already have a demonstrated track record. A lot of banks have franchise departments that will keep track of those franchises that are really performing well. This is actually very beneficial for those franchise start ups, because they can easily apply for financing from banks even if they are not yet fully established. D. It provides backup Franchisers will provide training and backup to those that will purchase their franchise so they can ensure their success. These can really be helpful, however, the success of the business will really depend on the franchisee. Franchisers are willing to help those people that bought a franchise with them. There are really a lot of benefits when you choose franchising, than starting your own business. Franchising is just like investing in different kinds of business ventures. Before making any decisions it would be best if you conduct a research first. Think before acting. Do not just choose any kind of franchise, you need to be sure that it is established and has quality products.