Benefits of Franchising
Franchising simply put, means multiple duplication of an already successful business.
The owner of the business (the National Franchisor) grants Franchisees (through the Regional Franchisor) the rights to own and run a copy of the initial business model using the same branding, administration, training systems, products and/or services.
The National Franchisor supports the Regional Franchisor who in turn supports the Franchisees business with marketing, ongoing training, business advice and administration assistance. This helps remove a lot of the risk factor out of starting your own business.
If you were to start your own business (not Franchise), statistics tell us that 77% of new businesses FAIL in the first 5 years, whereas 92% of franchised businesses SUCCEED. Like anything in life,franchising does not offer a guarantee of success. What it does offer is a formula that is not available to those who go into business alone. Buying a franchise means you are not starting out by yourself.
As Franchising is one of the fastest growing business sectors in Australia it’s great to know that it is also protected by the Federal Governments ‘Franchising Code of Conduct’. The Franchising code of Conduct is a mandatory code, which assists both Franchisees and Franchisors in making informed decisions prior to entering into a franchise agreement. It also provides a standard framework for operating within the franchising industry.
So should you decide that a Jim’s Dog Wash franchise is for you, you can have the confidence that you’re not only entering into the biggest franchise group in Australia but you are protected by the Federal Governments ‘Franchising Code of Conduct’.
So what are some of the benefits of Franchising over stand-alone forms of small business?
- Detailed Industry training
- As a Franchisee you have the incentive of owning your own business but not having to do all on your own. You gain the support of your Franchisor, your very own Business Mentor
- As a Franchisee you will operate under a well-recognised Brand which is already well established and trusted by the public.
- A franchisee receives the benefit on a national scale of the franchisors advertising and promotional activities at a lower cost than if you were to attempt such marketing yourself.
- A franchisee gains the benefit of linking into the bulk purchasing power and negotiating capacity made available by the franchisor by reason of the size of the franchised network.
- A franchisee can call on the specialised and highly-skilled knowledge and experience of the franchisor’, while remaining self-employed in your own business.
- The support and benefits provided by a Franchise system greatly reduce a franchisee’s business risks.
- A franchisee has the benefit of the franchisor’s continuous research and development programs, which are designed to improve the business and keep it up-to-date and competitive.
- The franchisor provides a knowledge base developed from their own experience, as well as that of all the franchisees in the system, which would otherwise be impossible for a non-franchised business to access.
- A franchisee can always speak to their franchisor or a fellow franchisee to discuss their business challenges or problems – something a non-franchised business can almost never do.