Can a Small Business Owner Start a Franchise

With franchising proving to be a popular business model, many entrepreneurs are considering the question of, “Can a small business owner start a franchise?”. The franchise business model allows bigger businesses to branch out and expand, while giving entrepreneurs and small business owners a chance to run their own operations with the help and support of a larger organisation. Franchising a small business is a great way to achieve business growth, while minimising the overhead costs involved in opening additional locations yourself.

Operating a new business can be daunting, but by opening a franchise business, you don’t have to start from scratch. A franchise business allows you to operate under a recognisable brand name with an established customer base. The best part is that franchise businesses have established business models, training opportunities, support lines, and mentorship that can assist entrepreneurs, especially in the early stages of business development.

One of the biggest differences between a franchise and an independent small business is the built-in brand recognition franchises have. When starting a new business, building brand awareness is a huge challenge, but a franchise’s brand is already established.  

This brand recognition does however come with a few caveats. Startup costs can require significant investment. Additionally, owners have to follow the franchise agreement in their day-to-day operations.

The Steps to Start a Franchise:

• Find an industry;
• Research the competition;
• Evaluate costs;
• Create a business plan;
• Form a business entity;
• Complete the franchise license agreements;
• Find a location;
• Order equipment & hire employees; and finally
• Open the doors to your business.

Benefits of Starting a Franchise

• Name recognition;
• Insight into tried and tested products/services;
• Location design/decor standards;
• Proven techniques for running business;
• Procedures for employee training; and
• Ongoing help with the promotion of products/services.

This spares you the time and risk of creating a venture from the ground up, and provides new business owners with a strong chance of success.

Even the most seasoned entrepreneur may be inexperienced in the franchise process, and this is where Franchise Administration can assist to ensure success.

For further clarity on “Can a small business owner start a franchise?” – Get in touch with us.