Benefits of Franchising: Why You Should Consider This Business Venture

Are you one of the nearly two-thirds of American adults who would like to run their own business one day? If so, you understand just how difficult it can prove to even decide what business you should open.

Should you open a competitor business for your old job or venture into new ground? Or maybe you just know you don’t like working for someone else.

If you still don’t know what business to open, you should consider moving into franchising. Not familiar with franching?

Keep reading and well cover franchising basics as well as the benefits of franchising. 

What is a Franchise?

A franchise is a particular kind of business model. It works like this. 

Someone owns an existing business that does well. The owner would like to expand the brand, but they don’t necessarily want to open new vacations themselves. 

So, instead of taking on the headaches and administrative overhead of new locations, they create a franchise. That means that they let other entrepreneurs buy the right to use the business’ logo, products, and methods. They also provide ongoing support in several areas. 

In exchange, the entrepreneurs agree to ongoing franchise fees and to abide by limitations set out by the franchise founder/owner. 

Curious about what options there are for franchises? Check out the top franchises 2021

Now that we’ve covered the franchise basics, let’s look at some of the advantages of owning a franchise. 

Cost of Entry Options

Starting any business costs some money, but some prove more financially reasonable than others.

Opening a restaurant can cost you over $400,000. You can start a modest food truck for around $50,000. 

The same applies to franchises.

Some name-brand franchises, like a McDonald’s, can cost $1 million or more to start. You can find some franchises than run you $2000 or less. There are options at nearly all price points. 

That puts business ownership within reach of almost anyone. 

Proven Business Model

Part of what makes opening a completely new business so uncertain is that you have limited info about its odds of success. You can make educated guesses based on general industry data, but they’re just guesses. Until you open, you can’t see how well the business will perform. 

According to Fantastic Franchise, with a franchise, you already know the business works because other people run them in other locations. You know the menu or service offered attracts customers. 

While there is still an element of risk, it’s a much smaller leap of faith. If the franchise works in other nearby locations, there is a good chance it will work in your location. 


Many franchises offer new franchise owners substantial training. That training can include a wide range of areas, such as:

  • Finances
  • Leadership 
  • Core processes
  • Equipment training

In essence, they tell you what works best in that business because they already know. By the time someone creates a franchise, they typically have the bugs worked out of the system. 

While this training generally focuses on running that franchise effectively, it’s not all exclusive to that business. Good principles of leadership and sound financial management hold true in all businesses.

That means you get preparation for future business ventures as part of the deal. 

Simplified Logistics

Another benefit that a franchise owner enjoys is less complicated logistics. A completely new business must set up relationships with everyone who supplies the business. 

That means that finding suppliers, vendors, and even software companies. After all, a point of sale system has to come from somewhere.

Once you find them, you must set up accounts. That often involves long delays as they run a credit check and make a decision.

With a franchise, the franchise owner already established all of those relationships. You use the suppliers, vendors, and software they tell you the use. 

This can vary by franchise, but you often enjoy better pricing than you’d get as an independent business. The franchisor often buys certain supplies in bulk and you get the lower price. 

Easier Marketing

Most brand new businesses struggle with marketing. They know in general what kind of marketing works in their industry. Yet, it often takes a while to figure out what works best for that specific business.

As a franchisee, you will typically get at least some marketing support from the franchisor.

They may provide you with basic ads you can use from the outset. They may even provide you with a website template that includes some core marketing copy. You simply update the content for your location. 

Again, the franchisor likely tested dozens of options before they landed on a combo of text and images that delivered reliable results. You skip that testing phase and jump right to results. 

Brand Recognition

A potential advantage you might see is brand recognition. When people go shopping around for a product or service, they like  the familiar. It’s why tourists overseas go into a Burger King instead of trying a local restaurant. 

If the franchise you pick is common in your region, you’ll often pick up customers based on brand recognition alone. They know what they’ll get with that brand. That’s enough to convince some people. 

For others, they may settle on you because the brand has multiple locations. You may only own or work out of one location. The customers take the existence of all those locations as a good sign that it’s across d business. 

Do You Want the Benefits of Franchising?

For the new entrepreneur, the benefits of franchising should prove tempting.

You can launch a business with a very modest investment. That’s ideal for young entrepreneurs looking to get started. It’s also good for those who find themselves abruptly downsized into unemployment. 

You get training, logistics support, and likely some help with your marketing. You even assume less risk because it’s a proven business model. 

If you start with a cheaper franchise, it also makes it less difficult to walk away if it doesn’t work out. 

Ready for more? Check out our Business section for more articles with tips and advice to help you run your business more effectively.