Did you know that some of the most popular and successful restaurants in the world are franchises? But what exactly goes into a franchise to make it work successfully? Put simply, a franchise is a license granted to a business that allows the business to use the licensor’s brands, products, services, operations and knowledge in exchange for a franchise fee.
The party that establishes the brand’s trademark and business system is the franchisor who grants the license. A franchisor provides a recognized brand name, site selection, development assistance, training opportunities, research and more! The party that pays the fee for the right to do business under the franchisor’s name and system is the franchisee.
Continue reading our guide on the benefits of franchising to learn more!
The Benefits of Franchising
A franchise can be a fantastic investment that can yield positive returns, not only for the franchisor and franchisee but also for the customers. Many customers feel more comfortable purchasing from a trusted, recognized brand, especially when it comes to food.
Familiar options, reassurance that the food has been prepared properly and reliable service are all benefits that a franchise brings to customers. With the familiarity, reliability and resources that come with owning a franchise, businesses can find the path to success.
Why Franchise a Business?
From the positive financial returns to the rewarding resources available, a franchisee can enjoy many critical advantages. Here are some of the top benefits of franchising a business.
Advertising and Promotion
A major benefit of franchising is the advertising and promotional resources available to franchisees. Because a franchisor is a large corporation with a marketing department and an already established and popular brand, purchasing a franchise gives businesses access to those materials.
A franchisor will often provide cooperative advertising resources and promotion initiatives to franchisees to help reach the target customer base, which will increase profits not only for the franchisee but also for the franchisor — a win-win scenario.
Another advantage to franchising is the speed of growth that your business may experience. A properly functioning franchise network has the ability to grow as fast as the franchisor can develop infrastructure to hire, train and provide support to each of its franchisees.
Opening a single, standalone business takes time. With a franchise, the brand, target market and product are already established. These pre-established elements mean that the franchisee will have marketing leverage over competitors and start earning business right away, rather than having to lay the groundwork.
Limited Risks and Liability
One of the most exciting aspects of owning a franchised business is the reduced risk and limited liability of running a franchise. When starting a business from scratch, there is an extremely high risk that the business may not be successful or that something may go wrong. When purchasing a franchise, the brand is already established, meaning that people are already aware of what you will be selling and you will have a customer base from the start.
A franchisee has limited risk as well because it won’t experience much need to negotiate, risk capital or sign lease and employment agreements. A franchisor provides the brand and market services for a fee and at low risk.
Increased Brand Equity
Finally, a franchised business can benefit from the recognition of the franchised brand and the equity that it brings along with it. By utilizing the established equity assets of the franchisor, a franchisor can grow their market share more effectively and efficiently than if they were starting a similar business from scratch.
How to Become a Franchise Owner
While it may seem daunting, becoming the owner of a franchise can be an incredibly rewarding process, both financially and personally. As a franchise owner, you will take what is already a viable, successful and established concept then apply it to successfully generate a profit for yourself.
Consider these steps on how to be a franchise owner:
- Begin by deciding what kind of franchise you want to open. Some of the most profitable franchises are in food services, such as the restaurant and catering industries. It’s important to choose a franchise in a market that you have experience in and feel passionate about. Most franchisors will look at the experience that you have within the industry and whether or not you have management experience when deciding to approve you for a franchise or not.
- Before purchasing a franchise, become familiar with the terms, conditions, requirements and fine print of the franchise opportunity that you’re interested in buying. Ensure that you’re partnering with a company that shares the same values and passion about the industry you’ll be diving into.
- Next up is to find the right area to open your franchise location in. Not every location is the same, and there are some areas that have the opportunity to be far more profitable than others. For example, opening an ice cream parlor in a climate where it is below freezing most of the year may not be as successful as opening the same parlor in Florida. Educate yourself on your target market, where they live and how they will be supporting your business in the future.
- Once you feel that you are properly prepared, it’s time to make the leap towards owning a franchise. The next step will be to submit an inquiry to become a franchise owner with the company that you’re interested in. Usually, this inquiry is a note or call to the company that contains your contact information.
- Finally, if the parent franchise company feels that you are a good match for their organization, they will have you submit an application. In this application, you will provide detailed background information about yourself and your financial situation. After submitting the application, the franchisor will decide whether or not you qualify.
- After you qualify, congratulations! You’re officially the owner of a franchise license. But if you don’t qualify, don’t lose all hope. You can reapply at any time and will be more likely to receive approval after improving your finances or level of experience going forward.
Franchise With Apple Spice
There are numerous benefits to owning your own franchise ranging, from valuable advertising resources to fast and expansive growth. The rewards from partnering with a franchisor to expand an established franchise brand are endless and provide countless opportunities to grow financially while making a difference in your community.
When you franchise with Apple Spice, you benefit from 30 years of specialized expertise in the box lunch delivery and catering business. This model offers you the opportunity to do business with clients both small and large. Our dedication to excellence, brand recognition, personalized support and training opportunities can help you find business success as an Apple Spice franchisee.
Want to learn more? Consider becoming a franchisee with Apple Spice Catering today by submitting a franchise contact form today.