Answer
While buying a franchised business is no guarantee of success, buying a franchised business which is part of an established franchise system can have distinct benefits over and above buying an existing non-franchised business or starting your own business from scratch. These include:
- Statistics show that a franchise business is usually less risky than starting your own business from scratch.
- You are using a model to operate your business that has already been proven to succeed.
- You are using branding that is already recognised in the market place. You will not need to spend time and money to develop public recognition of a brand from scratch.
- You will receive support from the franchisor who has already has the experience in operating the business and knows what works and what doesn't.
- You will receive training, support and manuals which will assist you to operate your business successfully.
- You get the benefits of running your own business combined with the benefits of being part of larger network for instance – preferential supply arrangements in a coordinated manner.
- You have the benefit of coordinated national and local marketing paid for by contributions from all franchisees and arranged by the franchisor.
- You may find it easier to obtain finance if you are purchasing a well-known franchise business
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