Why You Should Buy a Franchise

by Five Star Painting

Most likely the first thing you hear from someone when you are about to buy a franchise is, “What! Why would you pay someone $30,000 or 5 percent of your sales when you could start your own business?” Interesting enough, many people in America unfortunately are swayed by this question to NOT buy a franchise. Now I may be a little biased, given I own a franchise system BUT here are five reasons why I bought into franchising and why we continue to expand using this model.

We are on the same team. Royalties increase as your sales increase. What that means, is that when you need the most support you get it while you have the lowest sales. A franchisor in this way bets on your success by giving you the most value early on in hopes of a long term mutually beneficial relationship.

Technology. In today’s market almost every small business needs a techie, but what small business can afford one? From my experience we have spent hundreds of thousands of dollars developing cutting edge software to run our business. When you are a small business that is just not something you can afford to do. What ends up happening is a lot of outsourcing, tinkering, and trying to get it right when your focus needs to be on sales and service the first few months.

Buying power. When you are part of a larger organization you are able to participate in the savings that only large franchise networks enjoy. In some cases the savings may go beyond your royalty.

Network. There are lots of ways to increase your network, and thereby benefit by the knowledge of those around you, but when you are part of a franchise network you are all on the same team. This gives you access to the knowledge of every other franchisee, with all of their mistakes and successes

Branding. I saw an article recently on the value of Americas top brands (check it out here) http://www.interbrand.com/best_global_brands.aspx. Coca Cola was estimated at $68 Billion with a one Big B. McDonalds was at $32 Billion. Brands are worth something, and the power of the brand is made by a franchisor and franchisee working together to build that brand. When you buy a franchise, you get a piece of that the day you join.

-Five Star Painting

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