The business model of franchising is one that continues to be relevant no matter the time or challenge. Franchising allows the prospective business owner the opportunity to get into business for themselves, but not by themselves.
The franchisor develops a brand with systems and procedures to operate the franchise; the franchisor provides the model, marketing, advertising, training, tools, and operating system to successfully operate the business. And, as an added benefit, the brainpower of the entire network, including everyone at the corporate office and all of the franchisees, works together to find the best ways to keep and get more customers than the competition. The beauty of this model is that it helps anyone who is willing to work hard and follow the system to become a successful franchisee. If franchising is something you’re considering but are still not sure whether you should take the leap, here are a few helpful things to consider:
A Proven Path to Business Ownership
The franchising path affords the potential business owner lower risk than opening an independent business. By joining an established brand, one is able to take advantage of and build on the existing brand’s success. It’s similar to standing on the shoulders of giants who have already paved the way for your success. When we talk to existing franchise owners, they share with us to “just follow the system.” It takes trust at first, but over time, franchisees begin to see the value that the system provides and utilize the many resources at their disposal.
Training and Business Support
Many franchisees have shared that the reason they chose a franchise business is the extensive training and support they knew they would receive from the team at the franchisor. A reputable franchisor will provide excellent training, operations support, sales and marketing advice, and supply chain savings. Small business owners have the daily challenge of wearing many different hats, and oftentimes, they struggle to run all parts of their business effectively. By purchasing a franchise business, someone not only purchases the business but, in addition, they benefit from an entire support team (from marketing to sales management and technology to operations and more) who are merely a video call, phone call or email away. Franchising gives franchisees many tools and business training needed to leverage their growth.
At FASTSIGNS International, Inc., we have an entire training team focused on educating future franchisees by bringing them up-to-speed on business and financial management, sales and marketing management, production management, the industry, and more in three weeks of initial training followed by training in their own center. In addition, our inhouse team hosts webinars and has built and maintained various resource sites that house a plethora of educational, business and marketing assets. One of our core tenants is franchisee satisfaction, and we live that every day from our corporate office.
A Strong and Vetted Group of Vendors and Partnerships
With the power of size and scale, the opportunities available to franchise owners can also include things such as more affordable health insurance options or access to better vendor discounts across the supply chain. A larger franchisor is better positioned to leverage benefits from vendors and assists with the heavy lifting for negotiating better prices for franchisees, which they can then negotiate further on their own. The larger franchise network is also what enables the franchisees to tap into better cost savings that they would not normally have access to as a single business owner. In addition, the support team with the franchisor is daily working on behalf of all franchisees to find reputable vendors, new sources of supply, and create partnerships that help business owners increase their profitability, educate their employees and keep them on the cutting-edge of technology and trends.
Creates Opportunities and Generational Wealth
Those who are turning to franchising are able to gain success and build generational wealth for their families. Franchising is the most democratic form of wealth creation, providing the franchisee the opportunity to generate economic output, create jobs, and build wealth for themselves and their families. In our brands, we focus first on franchisee profitability, as we truly believe it is the foundation of franchising best practices. But, it’s important to remember that not all franchisors are created the same. Before you buy a franchise, you’ll need to be diligent in your research. This must always include reading their Franchise Disclosure Document, paying special attention to their Item 19 Financial Performance Representation. If they do not show results down to profit, you need to be wary. Another aspect of doing your due diligence is to speak with at least 25 or more of their current franchisees, inquiring about satisfaction, support, and profitability. We highly encourage that you ask existing franchisees, “If given the chance to do it all over again, would you?”
An Adaptable and Resilient Model
Franchising is a carefully and wisely constructed model of support that enables a franchise owner to better position themselves for continued success, no matter what is happening in the economic landscape. While it provides stability and support, it also provides flexibility for growth and positive change. During the COVID pandemic, the FASTSIGNS corporate team and all of the franchise network worked together to support each other, develop and refine new products and services, and share success stories to help every member successfully “weather the storm.” This model allows for more peace of mind to navigate challenges through a supportive and collaborative approach. Franchising removes and reduces many risks, as long as you are dealing with a reputable franchisor with extensive franchising experience, a focus on franchising best practices, and a brand with proven success. This incredibly effective model truly assists people on the path to reaching their business ownership success goals.
Is Franchising a Fit for You?
Aspiring business owners see the value in buying into a system that has been successful for others. This specific model truly assists people on the path to reaching their business ownership success goals and establishing generational wealth.
I feel incredibly blessed to be able to help people on the path to achieving their lifelong dreams of business ownership!
Catherine Monson , CFE , Propelled Brands, CEO Immediate Past Chair of the International Franchising Association, IFA Catherine Monson brings 30 years of franchising and management experience to her role as CEO of FASTSIGNS International, Inc., and Propelled Brands, the multi-unit franchisor that includes FASTSIGNS®; SIGNWAVE® in Australia where FASTSIGNS centers operate under the SIGNWAVE brand; NerdsToGo® and Suite Management Franchising, LL C, the parent company of MY SALON Suite® and Salon Plaza®