If you’re thinking of investing your hard-earned money into a franchise business, it’s likely important to you to understand the success rates of the industry and company into which you are buying. Franchising offers a number of benefits, to both the buyer and seller.
Here are some of the primary advantages a franchise model presents.
Training and Support
As a franchisee, you should expect to receive initial training and ongoing support from the franchisor, which greatly increases your chances of succeeding. F45 Training, a global fitness franchise, is a notable example. F45 provides its franchisees with daily workout/training programs, as well as extensive coaching in the F45 business system, including customer acquisition and retention. As a result, the franchise has experienced unprecedented growth. “This assistance allows franchisees and their staff to avoid a lot of the renowned pitfalls of gym ownership and focus their energy on the key growth drivers in their business,” says F45 Invest. The support franchisors offer normally includes managerial and administrative services, as well as marketing support.
An Entrepreneur article highlighted that "the most common barrier to expansion faced by today’s small businesses is lack of access to capital." Banks may be more likely to approve a loan to buy a franchise with a credible reputation, so financing your business may be easier if you choose to invest in a credible franchise.
Experience Is Not Required
You don’t need to have prior experience to operate a successful franchise. The training provided by your franchisor ensures you gain the skills necessary to run the franchise. For example, at F45 Training, everything is tailored to be as simple and direct as possible to ensure that the franchisee can quickly adapt to the world of owning a fitness franchise. The incredible success of F45 could be due to the fact that it has made the process of opening a new studio very easy, regardless of where you are in the world.
A key benefit in the franchise business model is that, as a franchisee, you are given the right to trade with an established name, logo, and style, which is not the case when you start an independent business. You are operating under a brand that has built up its reputation and general brand awareness. While your franchise won’t be immediately distinguishable from other franchises in the network, you can make customers aware of local ownership and stand out that way.
According to Small Business, “because a franchise consists of several entities doing business under the same banner, its purchasing power can be mighty.” As a franchisee, you will benefit from the negotiating power of the franchisor. Whether it be with brand awareness, major global partnerships, spokespersons, or marketing campaigns, having a big brand behind your own franchise helps drive sales and leads for your local market.
While the success of a franchise depends on several factors, if you do your research well and find a franchise that suits you, it can be extremely beneficial. Franchise opportunities like F45 Training are a great opportunity to take advantage of.