The Strengths of a Franchise System

 The formula behind franchising explains why so many people explore it as a career option. It’s pretty simple; a proven system means fewer mistakes. Everyone wants a degree of certainty when it comes to short and long-term financial success. How do you minimize the risk associated with franchise ownership? You join a proven system and you follow it.While there are no guarantees for success in any business, only franchising allows the prospective owner to obtain a wealth of information in order to determine the best prospects for success.

Expert advice and support 

Just like in a successful corporate structure, there is a web of leadership positions within a franchise that offers key insight and experience in the industry. For example, a new franchisee may not know anything about making the perfect hamburger, but within the franchise core there is likely someone who perfected a fantastic recipe and then surrounded himself with experts in preparing and distributing his new product.

As you learn about various franchises, it would be wise to examine the background of key players in the company. If you were buying into tutoring franchise, for example, it would benefit you to discover the involvement of skilled educators in key leadership positions. People that have experience in the industry before joining the franchise can offer insight that you might not find otherwise. 

A great franchise will typically have extensive training and support systems designed to get you on track and quickly and efficiently as possible. They will be very organized in how the training and support is provided. In the same vein, the existing franchisees act as their own support system should you feel the need to speak with someone who has been in your shoes.   

Marketing and purchasing power 

The marketing power of a system is far more efficient than a stand-alone business. Professional marketing tools, while extremely valuable, are very expensive. Fortunately, a franchise system provides marketing materials that are often much better in quality and price due to the size of the system.

Your stand-alone burger joint may have a $25,000 marketing budget for an entire year. However, you have to be careful about your spending within this budget for a single business. A set of high quality photos and brochures could cost this much alone. Economically, it’s impossible for stand-alone operations to have the power at the level of a franchise. Wal-Mart has proven that size matters when it comes to purchasing. A mom-and-pop business cannot compete with a large, well established franchise in this realm.

Community 

The community aspect of a franchise may be the strongest differentiator between franchising and large corporations. Life in a large corporation can be marked by political headbutting, competitive clashing among departments, and a focus on individual accolades and incentives.

In franchising, both franchisors and franchisees hone their effort on strengthening the collective community. The ever growing pool of knowledge and trust – the system – is what you become a part of in franchising.

The good of the whole will trump the good of one in the franchise world. Simply put, there is strength in the community that cares about its well being. One of my favorite Japanese proverbs explains this perfectly: “None of us is as smart as all of us.” Don’t hesitate to utilize all of your resources. There is strength in numbers.