The beauty of starting a business is that you have options. You can start your own, create your own brand and identity, then chase the dream of someday having a well-known brand. The other option, which we will dive into in this article, is buying a Business Franchise. To start, what is a Business Franchise anyway? It is when a Franchisor sells to another person, a Franchisee, the rights to use its trade name, products and services, in exchange of royalties over the years of usage. It is a contractual relationship that is usually entered into by successful brands and that of a person wanting to start a business, so as to skip the hassle of building your own brand and instead, start earning from the get-go.

When you buy a franchise, it doesn’t just give you a business that generates income. It also provides for the support of the parent company. With that being said, you will not have to worry about creating your own Operations Manual, Human Resource Management System, or even Equipment and Inventory Acquisition plan as these, and more, are all provided for by the Franchisor.

Usually, business creation starts with experience especially when the industry is a highly-specialized industry. Meaning, you will have to at least know how the operations of such a business works and ideally, have experienced working in one, before you may be able to run your own. I mean, you cannot run a food truck by yourself without knowing how to cook, right?

This is not applicable to buying a franchise. Sure you have to know at least how to read and enter into a contract, but that’s about it. When you buy a franchise, the Franchisor usually provides for the business model as well as the training needed to start and operate the business.

In starting your own business, before you even get to the actual operation, you will have to go through a lot of processes. You have to think about the licensing needed, the insurance, the regulations you have to follow, and the amount of money you will have to burn through promotions and marketing. All those things you have to pay for, before you even start to actually operate the business.

In buying a franchise, these are all usually taken care of. Of course you will have to go through the other processes personally such as real estate acquisition or leasing, etc., but for the most part, the brand build-up has already been taken care of.

These, and other things, make buying a franchise cost less than creating your own business - monetarily and timely speaking.

You’re probably thinking by now that we’ve been talking about branding all this time but “how hard is it really to make my own brand?”

Think of it this way, a franchise would not have been approved to be a franchise if it is not in good standing. Regulations are in place for matters of upgrading a single business into a franchise. You cannot also bet your capital as well as investments into upgrading a business to a franchise, if you think that the brand reputation is not really well-taken care of, right?

To answer the question, before a franchise is made, a business was first created from scratch. The brand that is being sold in a franchise also came from a simple business that was once tried and tested by time and experience. To simplify, a franchise being sold is more often than not, a brand that is already tested in the market and a business that works.

Author: Green Tech Cleaning LLC