Advantage #1 – The Experience of the Franchisor
When an individual buys a franchise, he purchases the years of experience and the proven methods of the franchise system, also known as the franchisor. One franchisee expressed it this way: “What I have learned from the franchisor was worth ten times what I paid for the franchise”. In any new business, much time and money are spent in trial and error. A proven franchise may eliminate many of the start-up problems. This reason permits one to open a franchise business with little or no previous experience in a given industry.
Advantage #2 – Training
A franchise system will provide training for the new franchisee. This is usually done at the home office and at the franchisee’s place of business. This training should prepare the new owner in all facets of the business.
Advantage #3 – Buying and Advertising
Most small-business people cannot afford inventory products in bulk or extensive advertising. The franchisee buys this advantage when he or she purchases the right to use the franchise system’s purchasing power and advertising. Most system provide advertising. Most systems provide advertising help and direction. Furthermore, as the number of franchisees increases, so does public awareness of the franchise. This can be tremendous advertising advantage. Also, franchisees that are located near one another can advertise together thus reducing cost.
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