Opening a franchise location is a life-changing decision. Once you realize that you can have the freedom of running your own business with the support that comes from having someone in your corner to back you up, the world is your oyster. There are so many franchising opportunities in the US, too. Think of the last time you stepped into a McDonald’s or a Circle K. That’s right, you too can have a slice of that billion-dollar pie.
What is a Franchise
Now that you’re interested, let’s dig into the specifics. What is a franchise, exactly? Put simply, a franchise is a business opportunity that allows someone to start their business by legally using someone else’s expertise, marketing ideas, and proven processes for success. You generally pay a fee to the franchise that gives you access to a huge amount of support that you’d otherwise have to make up for yourself as you go along. No need to do market research on the best shade of red for your walls or how certain taglines play for the 28-34 crowd.
Types of Franchises
There are three basic types of franchises that you’ll come across in your research. The first (and most common) is the business format franchise. This allows the business in question to expand by allowing other people to buy into the business with an established branding. Like mentioned above, fast food is probably the most prominent example of this. Smoke shops are an emerging piece in this category as well, too. Why are places like this so successful? People want what they’re selling on a regular basis, and they want to have easy access to a business near them.
Product franchises focus on people who sell products or delivering specific services in an industry. Think of your Roto-Rooters of the world. Finally, we have manufacturing franchises, where the business allows a franchisee to make products using their branded trademark. Have you ever seen something with the Coca-Cola brand slapped on it that’s most definitely not a soft drink? You can see them on T-shirts and apparel especially.
Now that you’ve dipped a toe into the basics of franchises, think a bit more about what you’d be interested in yourself. You can seriously benefit from buying into a proven franchise model without wasting your time on the small business stress you see left and right in entrepreneurial settings.
