Every entrepreneur is faced with the decision of whether to operate a firm as a solo proprietor or whether to purchase a franchise business. A sole proprietorship gives the individual the flexibility to make all decisions for themselves and keep all of the profits, however owning a franchise provides various privileges that can lead to even greater financial rewards for the individual. Not only does it come with a pre-made company plan, but it also comes with a loyal customer base, assistance, training, and other benefits as well. These are significant advantages that can help an entrepreneur realise his or her ambitions.
A readymade business model
When you own a franchise, you are obviously going to choose a brand that already has a name for itself and enjoys a huge customer base as they are able to distribute more branches to other budding entrepreneurs. This means that the business is already a success to a certain extent, all you need to do is strike a deal with the franchisor and take their proven business model ahead. Being a sole proprietor would mean starting with a new business model which might, or might not work. You might invest in an idea that looks great on paper but has several on-ground challenges that are really difficult to overcome. Owning a franchise will not give those sleepless nights.
Brand recognition and loyal customer base
One of the biggest advantages of owning a franchise over being a sole proprietor is brand recognition. Imagine owning a franchise of a brand like Dunkin’ or McDonald’s, two of the most widely recognized brands across the world having an incomparable customer base. Even if you don’t go that big, there are several small businesses that enjoy a powerful brand recognition and customer base in their area or their country, and there are several in the US. So, what most businesses struggle to create, franchise owners get it ready-made. You won’t have to spend money on devising a marketing and branding strategy, implementing it, and then promoting it on an ongoing basis. You just need to strike the deal, open the store and start making a profit.
Larger buying power
Being a franchise owner, you are a part of a larger operating system giving you a broader and stronger buying and negotiating power. Being a sole proprietor might not give you the same power. This power can help you save a large sum of money while investing as well as on an ongoing process. That not only means more profit margins but also a lower investment on an ongoing period.
Training and guidance
Several franchisors provide comprehensive guidance and training for all their franchise owners. Certain brands deploy managers and administrators to the franchise owners to give them the initial guidance that is required to settle a new business and help them kickstart their business. This gives you the experience and expertise from a source that has already seen it all and has all the right answers to the challenges you might face during the initial stages of your business. There are certain brands like Window Medics, which has established dedicated training centers providing hands-on experience imparted by their experienced managers. Such guidance and training can be of great help for those who don't have a lot of business experience.
Greater resale value
If, for any reason you wish to pass your franchise business to another entity, you will get a greater resale value than a sole proprietorship business. This is mainly due to wider brand recognition, a set and successful business model, and a ready customer base. Anyone looking to re-invest in your franchise business will look into all these factors and depending on the franchise brand, you can enjoy getting a greater value for your investment.
So, if you dream of being an entrepreneur and take matters into your own hands, owning a franchise is a lot better than starting a business from scratch. The advantages the owning a franchise provides outweigh being a sole proprietor and this is the reason several successful businesses are thriving even more by providing franchise options to several entrepreneurs. Some of the biggest and most recognized brands across the world are popular because they have expanded through the franchise model.
One such business is Window Medics which provides unprecedented franchise benefits. One of the most recognized and trusted brands in the domain of window repair and replacement, Window Medics provides robust and comprehensive training and guidance, equipment, advertising and marketing material, and charges zero royalty. And all this at one of the lowest start-up costs. The nature of the business is such that it doesn’t require a physical office, you can start it from your home as well. Since windows demand repair work and replacement all year round, this is an ongoing business model that will provide profitmaking right from the start.