You’re ambitious, you’re innovative, and you’re ready to enterprise your way into the business world. With such a gung-ho attitude, it’s hard to see the positives of buying a franchise instead of starting your own business. After all, why would you pay someone $30,000 or 5 percent of your sales when you could reap all of your own benefits? First and foremost, starting your own business is risky; 70-80 percent of independent businesses fail within the first few critical years. Buy a franchise, though, and your risk of failure drops to a mere 20percent. If those stats aren’t enough, here are five reasons I bought into franchising and why we continue to expand using this model:

  1. We are on the same team. Royalties increase as your sales increase. What that means is that when you need the most support,you get it while you have the lowest sales. A franchisor in this way bets on your success by giving you the most value early on in hopes of a long-term mutually beneficial relationship.
  2. Technology. In today’s market almost every small business needs a techie, but what small business can afford one? In my business experience, we have spent hundreds of thousands of dollars developing cutting edge software to run our company. When you are a small business that is not something you can typically afford. You shouldn’t have to focus on outsourcing, tinkering, and trying to get it right when your focus needs to be on sales and service the first few months.
  3. Buying power. When you are part of a larger organization you are able to participate in the savings that only large franchise networks enjoy. In some cases the savings may go beyond your royalty.
  4. Network. There are lots of ways to increase your network and thereby benefit by the knowledge of those around you, but when you are part of a franchise network you have access to the knowledge of every other franchisee in the company. This means that you have the chance to learn from all of their mistakes and successes.
  5. Branding. Check out this article on the value of the world’s top brands. This year the Coca Cola brand was estimated to be worth a whopping $68 Billion dollars. That’s Billion with a “B!” McDonalds, America’s golden arches, hit $32 Billion. Brands are worth something huge, and that brand power is made by a franchisor and franchisee working together to build that brand. When you buy a franchise, you get a piece of that the day you join.

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