For the uninitiated, a franchise is more like a permission from a business to use their logo, brand value, name, trademarks and products. If you intend to start a franchise, you would be the franchisee, while the concerned company will be the franchisor. So why should you start a franchise instead of a new company? How to get started? We have answered some of these aspects below.
Own business vs. franchise
There’s no denying that having your own business is a lucrative idea, but consider the work and effort involved. It may take a month, a year or more to convert the new business into something that customers identify with. The huge investment and risks involved are also points of contention for many new investors and entrepreneurs.
With a franchise business, you are safe to a good extent. You don’t just sell goods/service, but you acquire a brand that’s already relevant and has its own market standing in the targeted niche. Additionally, the investment is considerably lesser. Since you are selling a brand, the risks are lower too. The franchisor will offer all the support that you need before and after starting the business, including operations, marketing, financing, site inspection, and construction.
Selecting a brand
Some of the biggest franchise brands are expensive and may not fit the portfolio of certain investors. If you are starting or operating a business for the first time, find the best ones that have credible growth potential. For example, in Quebec City, you can think of Ben et Florentine franchise Quebec, which is a known diner and has more than 25 outlets. The idea is to work with a company that doesn’t demand huge fee in form of loyalty and allows new franchisees to earn their adequate share. The kind of support a company offers is also something to consider.
Applying for a franchise
Usually, most brands have a formal form and application process, and given that their brand value and reputation is stake, there’s always a screening process. Apart from the investment, they may check for a few other aspects, as well. In case of a franchise, it’s best to discuss the requirements, expectations and overall revenue-sharing plan in advance.
If you are keen on starting a franchise, doing some initial homework is always recommended. Check the application process and meet the company in person to know more about their response, services and support.