Taking a Franchise : Fruitful or Not?

So you're planning to buy franchise but somewhere doubts still occupying your brain that would it be right choice or not? Spending bucks on a big name is not required when the efforts can be duplicated. If you're opting for franchise business opportunities, you don't actually've to start from zero as it is already at its zenith and has proved that this business model works. A smart entrepreneur deeply studies the range of logistical, financial and marketing advantages offered by a franchise company prior to decide the kind of business to commence. There are certain benefits to be considered while the doubting worms buzzing in you.

Benefits of buying franchise :

• Established Brand
  

Building a brand is not a two minute noodle game. It might take couple of years for a newbie to reach the level of recognition as its competitiors're enjoying. But no,this feature doesn't exist in terms of buying a franchise. Big brands like McDonald's and Subway have already broken their banks on the logos and branding,and here the Franchise gets full advantage. Most of the Franchisors are well identified to public as they've survived decades already in their respective business. If the brand is remembered,so do the franchisees,being the successful brand identities.

• Advertisement

If the customer is not familiar with what you are offering, they won't bother to come in. No business can survive without getting itself advertised effectually. And effective advertisement literally costs a lot. However,this feature gets eliminated because you are buying a franchise. Franchises offer advertising campaigns that are included in your franchise fee.

• Financing

To collect seed capital is the another challenge crawling in the way of opening a business. Besides, the hesitation factor to invest in a new venture too exists here. Investors are usually more interested in investing in franchise chains having an established network,efficacious support structure and secure brand. In few cases, finance may be collected from the franchisor,making it simple and easier for the new venture.

• Low Chances of Failure

Statistics say franchise buying is more successful rather than starting up an independent business. Where the franchisees stand a 80% chance to survive,the people who are new to a business in the starting critical point of time have 70-80% chances of failing. Thereby, Franchise gives the impression of "less likely to fail"

• Ongoing Support

If you're buying a franchise, you are not alone. You will be having the ongoing support of the franchisor always. They want you to do well, after all you are a part of the developing family. They will be available to train you in everything from the accounting, to the technology involved to taking money and asking questions.

• ROI

While buying a franchise, the ROI i.e. Return of Investment is also one of the important factor. When doing the evaluation process, ROI can't be ignored. By calculating it you can get a rough estimate of what return you can expect on your investment.

ROI is of two types : Active and Passive. In passive return of investment , investors are

sure of certain amount of profit after a particular period of time from the investment has been made. Further,they're not required to indulge in these investments on a daily basis. But, investing in a franchise is not a passive investment as it requires active and daily participation of investors. Franchisees need to invest a lot of money and time to get the ROI on their franchise that differs in every case. In this situation, the franchisees have to look for a franchise with high return on investment.

Some Speeding Ahead Franchisee sectors are:

• Health and beauty
• Apparel & Fashion

• Restaurants and Convenience stores

• Fitness Centers

• Educational Programs

• Tax Services

These categories in Franchise Business in India is growing very rapidly. And this is why it is known as a simplest way to go into business for the first time and worth to be considered. Check various online websites which provide information about Franchises. Log on to GetDistributors.com or all your franchise related needs,your new business is just a click away.