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What Makes a Franchise a Better Option Than a Startup?

Almost everyone who dreamt of having a business, at one point, had to choose between getting a franchise and starting a company. If you’re looking to start your own firm and you have the budget for it, experts will tell you that the better way to do it is to franchise an existing business.

Brand Recognition

One of the main reasons franchising is a much better option is brand recognition. If you franchise an existing well-known business, such as McDonald’s or Burger King, people will immediately recognize the store and go to it.

If you’re going to build your own restaurant, on the other hand, you’ll have to wait for months or a few years before people will start recognizing your store. Also, customers remember mishaps more than successes. So, if you make one in your store, like one of your sandwiches is soggy, then you might ruin your reputation.

With big brand names, it’s almost impossible to go wrong because they have already established a strong reputation that everyone is aware of. And so, it’s harder to build your reputation as a brand if you’re only starting out.

No Trial and Errors

Another advantage of franchising a store is that you already have a manual on how to run that particular business. Every franchisee will receive training on how to run the store, so it will be easier to manage your business.

Unlike starting your own company, you need to figure out a lot of things, such as marketing strategies, managing a small crew, taking care of inventory and deliveries, etc.

With this option, you need to learn the ropes, and even if you manage to learn everything, you need to know about running a business. It’s no guarantee that your store will succeed.


businessman doing accountingYou might think that starting your own business is less costly than franchising an existing store, but you’re wrong. Most people think that franchising is expensive because you have to pay large fees to franchise a store.

But the truth is you’ll get to spend more if you start your own business because there are many expenses you have to take care of that are already taken care of in a franchise. One example is advertising. If you’re franchising a store, all the signs you need to tell your neighborhood that you’re opening sub franchises down the block will be provided to you.

If you’re starting your own business, you need to take care of those yourself. So, that means you have to pay a graphics artist to make you a sign, if you don’t know how to. You also need to pay a copy center to print signs for you, which might cost you a lot.

Less Tedious

Finally, the best advantage of franchising a business is that it is less tedious than running a start-up firm. A franchisor will be there to guide you through every detail you need to know to run a store successfully.

So, if you’re looking to have your own business, go with franchising a store right away. It’s easier to manage, proven to be successful in drawing in customers, and guaranteed to make a profit.

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