One of the many reasons entrepreneurs gravitate towards a franchise business is the minimization of risk! The franchise business model is a proven model with processes in place and a much lower failure rate than that of a startup business. Franchises truly offer the opportunity to buy into the independence of a small business, but with the benefit of a larger business network.
Part of this lowered failure rate is that franchises come with brand recognition built into them. When consumers are looking for a particular business they frequently gravitate toward a well known name in the industry, thus some of the success of a franchise business is built in. Once under contract, the franchisor and the franchisee have an ongoing relationship. The franchisor will provide training to the franchisee to get them started in business, often times this means the buyer doesn't even need prior experience to run their business. The franchisor will also provide corporate support for advertising and marketing initiatives as well as a network of resources and professionals to support the owner as they become more established.
The perceived disadvantages of buying a franchise are few. Generally, the initial franchise fee can be difficult to swallow. However, this fee includes the rights to open a business location using the franchise model, logo and design as well as the initial franchise training. This initial fee can also be significantly cheaper, when purchasing a franchise resale than purchasing a new franchise location. There is also the royalty fees that support continued branding, advertising and the provision of administrative support. While paying fees is no one's favorite task, these fees pale in comparison to the ability to start a business on your own with a full network of support behind you.
For more information on buying a franchise and the franchises available for acquisition in Colorado, please contact one of our knowledgeable brokers today!
Rachael Holstein joined the Transworld Team in 2016 as Marketing Coordinator. Her working experience has been largely focused on Business Development and Marketing in the finance, architecture, property management, and information technology industries. A longtime resident of Cleveland, Ohio, she attained her Undergrad from John Carroll University and a Master?s Degree in Global Interactions from Cleveland State University. She relocated to Denver in 2013 for a change of scenery and a bit of adventure.