Top 15 Benefits and Rewards for Business Owners
Top 15 Benefits and Rewards for Business Owners
1. Sell Your Knowledge
Cash in on your experience and knowledge by selling it to others
2. Expansion Capital
Grow your business using "other people's money"
3. Immediate Revenue
Franchisees usually pay an up-front franchise fee
4. Free Advertising
Franchisees contribute to an advertising fund
5. Higher System-Wide Sales
Research has shown that individual unit sales increase when converted to a franchise system. Because the owner is on-site, a typical franchise unit will have higher sales than a company-owned unit.
6. Cost Savings
Generate cost savings through bulk purchasing power which translates into higher profit margins
7. Accelerated Growth
Franchising permits you to open multiple units at the same time because the franchise buyer puts up the investment capital and provides "dedicated" management
8. Market Dominance
Multiple units increase your competitive advantages over similar businesses
9. Quality On-Site Management
Since the franchisee is more dedicated than a company employee, sales and profits will be higher, expenses will be lower, customer satisfaction will be greater, quality standards will be better maintained and costs will be controlled more tightly.
10. Greater Name Recognition
As additional units are opened, name recognition usually increases. This increases the value of the business to both the business owner and its franchisees.
11. Faster Market Penetration
Franchising can allow a company to penetrate the market quickly while also increasing the stature and prestige of the company.
12. Limited Liability
You will not be signing leases, taking on financing, etc.
13. Fewer Day-To-Day Operating Headaches
Franchisees takes care of employee problems, hiring, firing, etc. This eliminates the need and difficulties of recruiting, training, compensating and retaining staff to operate company-owned outlets.
14. Free Research and Development
Franchisees are an important source of new marketing and product concepts, which can benefit your entire franchise network and increase the royalties you receive.
15. New Revenue Streams Are Created
Business owners may earn income from the franchise operation from a wide variety of new revenue streams described in the following section.
Benefits and Rewards for Franchise Buyers
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Top 10 Benefits and Rewards for Franchise Buyers
1. Better Chance of Success
Government research shows that 80% of new businesses fail within 5 years. With franchising these figures are reversed.
2. Proven Business Concept
The franchisee buys into an already proven business concept – he does not have to “reinvent the wheel”.
3. Training and Support
Through training and manuals, he has a well-defined track upon which to launch and operate his business.
4. Advice and Guidance
As issues arise, he can turn to the franchisor for advice and expertise.
5. Enhanced Brand Recognition
As the franchise network expands, he receives the benefits of enhanced brand recognition.
6. Collective Experience and Knowledge
As the franchisees as a group gain experience, they can provide ideas and answers to each other’s questions.
7. Business Reviews and Business Planning
Many Franchisor's will hold review meetings with you to discuss all aspects of the business and plan for the future.
8. Accessibility of Finance
As a franchisee, you will benefit from the track record that the franchise as a whole has established.
9. Group Buying Power and Research
As part of a franchise network much of the product research and testing process will be carried out for you. It is also possible to take advantage of group buying discounts and better terms from suppliers.
10. In Business For Yourself, Not By Yourself
Franchisees are in business for themselves, not by themselves.