Starting a business is a dream for many of us, but such ambitions are not without their risks. That’s why it can be beneficial for first-time entrepreneurs, and indeed seasoned businesspeople, to invest in a franchise rather than a startup.
Entering competitive markets – like the coffee shop industry – for the first time can be incredibly challenging. Embracing the best franchise opportunities offers a wealth of advantages that’ll put potential franchisees on the path to surefire success.
What are the Advantages of a Franchise Business?
There are many franchising advantages that make buying a franchise business so attractive. Here are some of the top considerations:
- Reduced risk of failure
- Ongoing business support
- Market expertise
- Brand recognition and loyalty
- Increased buying power
- Higher profits
- Better chance of finance
- Being your own boss
- Opportunities to grow
1. Reduced Risk of Failure
As a franchise owner, you’ll benefit from the name and identity of an existing brand. You’ll operate under their proven business model that has provided results again and again.
This offers a level of security that is just not there when you start a business from scratch, ensuring you start seeing profits from the beginning.
2. Ongoing Business Support
Support from an industry expert can be invaluable when taking on a new business venture. Depending on the sector, this support can take many forms, undoubtedly making the opening and running of your business much smoother.
Initial support may include things like procuring premises, store design and supply management. The franchisee and franchisor relationship is ongoing, so you’ll also receive long-term operation support, ongoing training for you and your staff, guidance with marketing and more.
At Esquires, we provide customised support for each of our partner’s needs, ensuring everyone can enjoy the success of a thriving coffee shop.
3. Market Expertise
As players who have been in the game for many years already, your franchisor will have lots of market knowledge and valuable expertise to pass on to you.
Ultimately, you will be able to learn best practices very quickly without many hitches. This vital knowledge further increases the likelihood of your venture being a success from the get-go.
4. Brand Recognition & Loyalty
Because you are joining an existing brand that is already a recognisable name, your store or business will have a built-in customer base. Many patrons naturally gravitate to their long-preferred options, so if they’re already familiar with your name, you’re one step ahead.
The brand name and the power behind its identity can bring much-needed traffic through the doors upon opening, giving you the chance to make them regular customers to your location.
5. Increase Buying Power
When you’re part of a franchise, forming contracts with external suppliers is much easier. As part of a larger organisation, you are more likely to see reduced costs and more favourable terms for the products and services you need to operate.
Here at Esquires, all of our franchisees benefit from favourable contracts with suppliers of goods and services, helping you maximise your shop’s business potential.
6. Higher Profits
Despite the initial startup costs and franchise fees, franchised businesses generally see a higher return on investment sooner than independent businesses.
This is down to many of the advantages mentioned above, with recognisable brands and proven business models garnering more profit than those just starting out.
7. Better Chance of Finance
Because of the more guaranteed opportunities for profits and the higher chance of success for franchise businesses, you may find that lenders are more willing to provide loans and financing for your business startup costs.
8. Being Your Own Boss
Owning your own business is desirable for several reasons, with the flexibility and freedom afforded to you being among the top perks. With a franchise, you get all the benefits of being supported by a successful brand while still having the opportunity to be your own boss and run your own business.
At Esquires, we provide plenty of support but don’t take over, allowing individual owners to leave their mark and turn their store into a thriving community hot spot.
9. Opportunities to Grow
When you’ve proven yourself with a single-store franchise and reaped all its benefits, there are several other kinds of franchise agreements to branch out into to continue seeing success.
For example, regional or master franchise agreements allow you to develop a particular territory, operate a network or business and further consolidate your portfolio.
If you’re interested in all the rewards owning a franchise can offer, buying a coffee shop franchise might just be the perfect opportunity for you! The coffee shop industry is thriving but competitive, making entering the coffee world as a part of a franchise an ideal way to get your foot in the door.
