One of the main benefits of the franchise system is that an established brand identity and market presence is already in place for the business. This enables capable managers to easily generate a steady revenue flow through existing sales channels. In addition, new franchise owners receive extensive training and management support from area leaders. With well-established success formulas set out, more than 95 percent of franchise operations move beyond their five-year threshold as thriving enterprises.
Another benefit of the franchise system is that owners’ royalties go directly towards marketing, customer support, management, and advertising budgets that would be extremely expensive to build from scratch. While there is no guaranteed amount that franchisers make, they do have the opportunity to contact other franchise operations and ask hard questions about real world results that they have achieved, as well as specific challenges faced.
About the Author: As Business Broker and Area Director with Murphy Business & Financial Corporation, Martin Raffol performs business valuations and assists owners in increasing value and positioning companies for the sale process. His firm notably operates as a franchise operation that offers entrepreneurs expansion opportunities.