By Neil Patel

Starting a business is a major endeavor. You need to perform market research, file for a license, create a marketing plan, and build your brand. One way to shorten the process is to become a franchise business owner.

As a franchise business owner, you can tap into the resources and branding of a large brand—while still maintaining the autonomy to run your own business.

If you’re considering starting a franchise business, there are a few things you should know. First, let’s talk about what a franchise business is.

How Does a Franchise Business Work?

In a franchise business, a franchise owner pays a fee to essentially “rent” a brand name. The franchisee runs the business themselves (or hires someone to run it) and must follow the rules and regulations related to how the brand is used.

For example, many McDonald’s restaurants are franchises, meaning an owner (or group of owners, in some cases) pays McDonald’s to use their brand name, menus, logos, and other business assets.

They run their location, pay McDonald’s to use the name, and keep the remaining profits.

A franchise business is a popular business model because it offers owners the best of both worlds: the support of a large brand and the benefits of owning a business.

A few businesses that offer franchising options include:

• 7-Eleven
• Taco Bell
• Great Clips
• Ace Hardware

Starting a franchise business should not be taken lightly. There are pros and cons to consider before deciding whether to become a franchisee.

4 Benefits of Starting a Franchise Business

Starting a business gives you more control over your life and income. Unlike starting your own business, however, there are specific benefits to buying into a franchise.

More Support

Starting a franchise business is sort of like playing video games on easy mode. The franchisor offers support in the form of training, materials, process flows, and branding to make it easier to get your business off the ground.

For example, starting a taco shop could require months for menu development, taste testing, logo design, product sourcing, etc. As a Taco Bell franchise owner, however, much of that work is already completed.

Lower Failure Rate

Franchise businesses often have a lower failure rate. When you buy into a franchise, you join a proven business model that works. You also have additional support and business resources that can make a difference in your success.

Built-In Brand Awareness

Building a brand is one of the best things you can do for your business. However, it often takes time and resources. When you buy into a franchise, the branding is already complete. People already know who your brand is and what it represents. This saves you time and creates a built-in customer base you can tap into.

Better Buying Power

In some cases, you may purchase goods at a lower rate. Many franchisors negotiate contracts with vendors for the entire network, allowing you to spend less …read more

Source:: Kiss Metrics Blog

Author: Aaron