Why does anyone choose to buy a franchise? Well, as UK franchisor Michael Eyre recently told the National Franchise Convention, “Franchising is the most successful method of distribution of goods and services.”
And it’s a global phenomenon. While it started out in the US last century, the franchising model (in its many forms) has spread across the world and has inspired generations of individuals to invest in building a business for themselves – with a little help along the way.
In Australia, according to the Franchising Australia 2014 report by the Asia Pacific Centre for Franchising Excellence, the franchising sector is estimated to be worth $144bn – that includes vehicle and fuel sales – with a possible 1180 systems trading as franchised businesses.
So why exactly is this business model so popular?
9 reasons why you should buy a franchise
The back-up and experience of the franchisor team and other franchisees can prove invaluable.
- Brand
- Training
- Tried and tested system
- Buying power
- Site selection and negotiations
- Marketing expertise
- Business support
- Mentoring
- Expansion path
As the Franchising Australia 2014 report points out, in the two years of its study, franchise units had grown by about 6000, that’s just over eight percent.
Do you think franchising could be right for you?
Find out: why franchising could be better than starting up your own business; the pros and cons of franchising rather than an independent business.