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Published by on Saturday, June 29, 2013 at 5:01:00 PM

Top Reasons to Franchise

top reasons to franciseThe notion of franchising isn’t merely an offshoot of modern capitalism and enterprise; it goes back much further. In fact, the origins of what we know today as franchising likely started back in the middle ages. It was in this time that wealthy landowners would offer rights to the local serfs or peasants so they could practice commerce in the domain. While modern society is no longer based on serfdom, the general principal of franchising remains the same: to achieve greater odds of success in business than through sole proprietorship.

And while the American dream may have been built on this notion of sole-proprietorship, to suggest that it is the only business model worth exploring is in error. In fact, there are a number of benefits that come with investing in a franchise that don’t exist when an individual starts a small business. Here are just a few:

Less risk

Those who do opt to invest in a franchise will first encounter two pleasant realities: investment costs are lower than with private enterprise and profit margins are higher. This is due to the fact that in most cases the franchiser is a proven entity with a track record for operational success. Not only that, but investing in a franchise eliminates the all-too-common trial-and-error period that comes with starting a new business.

Less marketing

Another reason investing in an established organization makes sense is that the investor doesn’t have to flood the advertising market with dollars in order to build a brand from the ground up. Because in the world of commerce, a recognizable name is often worth its weight in gold.

Hit the ground running

Most franchise units are ready-made business opportunities that are poised to take off right from the get go. That means investors don’t have to worry about tweaking business models or rebranding strategies. And with unified store designs and a solid reputation already in place, investors can focus on moving forward as quickly and painlessly as possible.

Even though the investor is working in concert with an organization, he or she still functions as the proprietor of that particular franchise. And unlike most small-business owners, the franchisee can count on robust support from their larger and more experienced counterpart.

Dependable allies

It’s always nice to have another party shoulder the burden, especially when it comes to business. And indeed this is why franchises are often such attractive options to investors. But the biggest reason for the system’s success rate is the fact that this assistance is mutual. The franchisee depends on the investor, and thus has skin in the game. In fact, the scenario usually involves the two parties working equally together for the common good, much like a marriage.

These are just a few things to consider when deciding between franchising or sole proprietorship. Ultimately, the decision will likely come down to how well a person thrives in a collaborative atmosphere as opposed to one in which there is one single business owner who calls all the shots – and thus assumes all the risk.

Candace Allen is a professional blogger that provides news and information on the top franchises and franchise areas such as energy drink franchises and printing franchises. She writes for, the best place to find the top franchise opportunities and businesses for sale.
Published by IzajAhmed Shaikh.
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I am, Mr. IzajAhmed Shaikh, Computer Professional, and Pro. Blogger, who belongs to Shahabad, Karnataka India. My basic Qualifications are B.Sc., and M.C.M. done from University of Pune, formerly known as, Poona University, also like to write articles based on my personal experiences.