Franchising is the fastest and safest way to become a business owner. Rather than making all the mistakes and risking disaster at every turn of the road, a franchisee can buy the necessary experience and expertise. In many systems, franchisees get fantastic value in the knowledge they obtain for the dollars invested.
A franchise purchase is often an opportunity to acquire the use of an already established name with lots of goodwill. As an independent, the franchisee would have to invest many years and dollars to achieve the same name recognition.
These days, many of the best locations are simply not available to a new independent business. However, someone without any prior business experience can obtain a lease in the largest shopping mall in the country as a franchisee of an established system.
The group buying power of franchises can give the franchisee the important edge over the competition and improve profitability. The amount and quality of advertising a franchisee can obtain for his advertising contribution to the regional or national fund of the system is substantially greater than would be the case if the same dollars were spent for an independent business.
Most independent businesses can only dream about the research and development programs available in many franchise systems. Such research and development can make a big difference in competing and profitability.
When it is done properly and works well, franchising is a win/win situation for all concerned - not just for franchisors and franchisees, but also for consumers, landlords and suppliers. Consumers get superior products or services more efficiently and at better prices. Landlords can predictably increase their traffic flows and reduce the incidences of lease defaults. Suppliers can be assured of a steady volume of purchases with secure receivables.