Franchising is considered as the best option for small business owners. In the UK alone, there are more than 900 franchises operations, so there must be a catch behind running a franchise business.
Have you ever wondered even with so many rules and regulations by the Franchisors, why more and more investors are seeking franchise opportunity rather than starting their own business from scratch?
Why Consider Franchise opportunity? Following are the top worth-considering opportunities a franchising business offers:
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Proven Successful Business Model:
Having a business model that is proven to succeed is a huge advantage. It will save you from a lot of trouble, and it will save you a lot of time. The business is highly likely to succeed as it will already have an established product, brand identity, distribution channels, product demand, and other business processes.
The successful business model sets a secure platform for long-term business success even for van-based franchises, home based franchises, low cost franchises.
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No Product Development:
Product development takes a lot of time, research and professional expertise. It is a lengthy process that requires a lot of investment for trial and error. Developing a successful product can take years, and product adaptation and creating its demand can take additional years.
This is one of the most significant advantages of a franchise business as it is highly likely that its customers already exist and they are fully aware of the product.
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Established Market and Customers:
You would not have to develop market demand, and there is a high chance that the demand of the product already exists in the market you are trying to cater, especially if you are penetrating the market and starting a franchise business in the region where other Franchisees exist.
If in case the demand does not exist, entering a new market and creating market demand will be not difficult in the market with similar demographics because of the successful business model.
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Limited Professional Help Required:
Without a doubt selecting and buying a franchise business would require a lot of professional help. However, once you have established the Franchise business, you would not need a lot of professional help to successfully run the company as you would only be following instructions and guidelines that are provided by the Franchisor.
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Usually a One-Time Investment:
Franchising is popular because it does not require consistent reinvestment. Once you have purchased a franchise, fulfilled all legal requirements, paid insurance, established the Franchise according to the pre-defined standard, and the Franchise has started making a profit.
It is usually not necessary to make a reinvestment because it is very little to no changes that you can make to the product or any other aspect of the Franchise business. The investment might only be required at the time of any updates that are instructed by the Franchisor.
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No Prior Experience Required:
One of the main reasons behind the success of the Franchise business is that it requires very little to almost no prior experience. The Franchisor is responsible for providing training and guidance to their franchisees, so if you have the investment, but you are hesitant about investing in business due to the lack of business experience, you can opt for a new franchise UK business.
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Ongoing Support:
Running a franchise business means that you will always have a team overlooking your franchise to ensure that all the processes are running smoothly and according to the requirements of the Franchise.
The on-going training and development offer additional support that you will not get if you will be running your own business from scratch. With a franchise business, you will always have professional guidelines to help you on every step of the way of making the Franchise business a success.
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Less Risk of Failure:
With a successful business model and sufficient business support, the risk of failure is close to zero. There can only be a few scenarios that can result in failure, either you fail to choose the right franchise business, according to the regional demographics, or you did not follow the guidelines and meet the standards of the Franchisor. In extreme cases, you got scammed by a franchisor that was not a member of the British Franchise Association.
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Higher Profits:
Your franchise business’s profit will be connected to the Franchisor’s profit. Therefore, it is highly likely that you will receive sufficient support from the Franchisor to ensure that you are always on track. Apart from the sufficient interest of the Franchisor, the established market demand will also guarantee a high-profit margin in the long run.