The prospect of working for oneself and owning a small business is the dream of many Americans. In the past, many entrepreneurs have succeeded in establishing and expanding their business. However, in today's economic climate, the competition is much more intense and starting a brand new business without name recognition is risky. Luckily, the business world today provides potential entrepreneurs with options to still succeed through franchise ownership.
Benefits of Investing in a Franchise
- An established market: Franchises offer most of the benefits of small-business ownership, but with the advantage of acquiring a business already established in the marketplace - most franchises come with brand recognition and an established market presence. Dick Shon, owner of several Midas Muffler franchises, recently reiterated to the Palm Beach Post the benefits of franchise ownership. He knew that buying a franchise would automatically provide the much-needed "potential customers."
- Promotional support: When it comes to marketing, small-businesses owners may understand the management aspect of owning a business, but may not necessarily be as savvy when it comes to properly marketing their business. For franchisees, they have the benefit of relying on franchisors to provide this type of service. In many cases, franchisors provide advertising that reaches customers nationwide and marketing materials to franchisees. And Shon can attest to this. He told the Post that he knew through franchise ownership he would have "someone to go to for advertising, promotions and business operational support."
- Funding: In today's financial market, obtaining a small business loan is not easy. However, in some cases, banks are more willing to provide potential franchisees with startup loans for established franchises; particular those that seem to perform well. In other cases, franchisors are offering their own funding or lending assistance to franchisees willing to invest in their business model.
- Training: Many start-up businesses have floundered as their operators "learned the ropes" of that particular business. Franchisors provide training and business support enabling franchises to hit the ground running.
Though beneficial, investing in any franchise is still extremely complex. However, having the help of a franchise law attorney who understands the intricacies of franchise ownership can help make the process run more smoothly.
On Monday, April 16th, 2012, Julie Lusthaus was interviewed in a 30 minute segment about Franchising on WVOX 1460 AM radio by Marsha Gordon, President & CEO of The Business Council of Westchester.
