Did you know that about 5.3% of small businesses are franchises? Franchise growth is on the rise, and operating a franchise or becoming a franchisee can benefit you.
But what is the difference between running a small business and franchising it? How do you find the right franchisees, or how do you become a franchisee yourself?
We’ve got the breakdown on the pros and cons of franchising, best practices, and how to market your franchise and grow. If you’re wondering how to start a small business franchise, keep reading for our tips.
Pros of Operating a Small Business Franchise
Since a business must be proven and profitable before franchising, a franchisee is put in a position to succeed. If the franchise is set up properly, the business is sure to find success and growth. No trial and error, no spending money hoping something will work. The business is already proven to work!
As a franchisee, you’ll connect with other business owners as a part of the franchise. With this network of built-in support, you won’t have to go looking for help. Instead, you’ll have others in your same position ready to help you succeed.
The recognition of being part of a larger brand makes generating business easier. You’re responsible for maintaining the standards of the business and meeting customer expectations.
Cons of Operating a Small Business Franchise
Franchisees will have to pay a fee to start their business, along with monthly royalties to the franchiser thereafter. This cost is in exchange for the training and business tools provided, but it does make a dent in your take-home profit.
As a franchisee, you have to adhere to procedures and protocols set by the business. If you’re looking for independence to run your business how you want, then being a franchisee is not for you.
Best Practices for Operating a Franchise
Before jumping into a franchise, you’ll want to find a business that has four qualities. Proven, profitable, teachable, and transferrable. Unfortunately, it’s not as easy as purchasing a great business model and raking in the cash. Do your research to find a reputable franchise and ask questions on how involved you’ll be with growing and developing the business.
Make sure to follow the franchise agreement to avoid any legal or financial trouble. Remember, you are responsibly running another’s business.
Franchise Marketing and Growth
Though the business you’re running is already proven to be successful, you still have to put in the work to help it grow! That’s where proper marketing comes in.
Make sure your brand materials are professionally designed to make your business look its best. From logos to brochures to flyers, those materials matter and represent you.
With a smartphone in everyone’s pocket, it’s crucial to market your business online. You’ll want to set up a strong online presence for your franchise and place ads to generate leads. Click here for more on how to generate leads for your franchise business.
Franchise Opportunities Are Out There
Once you do your research to find a great franchise opportunity and learn the best practices, you’re sure to find success. Operating a small business franchise offers a support system for running a business that you won’t get from starting one on your own.
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