Franchising is unquestionably popular in the United States. There are about 3,000 franchises (franchised brands) and about 785,000 franchise establishments as of 2020.
Why are Franchises Popular for Consumers?
Franchises are popular for consumers because they offer instant recognition along with some degree of established trust and reputation. They offer familiar and consistent products and services making decision-making easier. They provide the same or similar layout and design environments that provide comfort, help manage customer expectations, and assist with planning ahead. Franchises make travel easier because don’t have to guess what you will find inside their doors. They also typically make great efforts to be part of their communities.
What are the Nine Benefits of Franchising?
For entrepreneurs, owning a franchise offers significant advantages versus creating a from-scratch business. Consider these advantages offered by franchises:
Entrepreneurs seeking success in owning and operating their own business can build a business using established products or services.
Business systems have been defined and proven viable.
The business will have a defined brand identity and established brand recognition which helps with customer familiarity and trust. Customers know what to expect from the brand.
Franchise owners have access to training programs before they open and can get training and operating support on an ongoing basis as needed.
When problems arise, there is an established avenue of technical and operating support to assist the franchisee.
Franchises offer established purchasing systems and purchasing efficiencies so an owner can operate with the benefits of scale instead of buying items as a single unit operator.
Advertising and marketing assistance are provided. Often, marketing cooperatives are formed to build the brand collectively.
If a franchise owner decides to sell his/her business at some point in the future, the franchisor can help in that process.
Franchises often provide some limited financial assistance for their owners.
Seek Expert Financing Assistance
Contact 360 Commercial Capital based in Leesburg, FL, for fast and flexible business financing. We offer a large portfolio of business loans for a variety of commercial finance needs.