What Makes Franchises So Successful?


Franchised businesses are more than twice as likely to still be in business after 5 years than non-franchised businesses.  This is a compelling reason for any aspiring entrepreneur to consider buying a franchise.  But just what is it that makes a franchise more successful than non-franchised businesses?

There are several reasons:

Established Operating System.  Franchises have developed, tested and honed an operating system that has proven to be highly successful.  By applying this proven formula for success, new franchisees greatly increase the odds in their favor that they will also be successful.

Collective Buying Power.  Since franchisors make arrangements to supply all of their franchisees with the goods and services they sell, the franchisor can leverage this buying power into lower costs of goods sold for their franchisees.  And one of the keys to success in any business is keeping more of every dollar you earn, this buying power gives franchisees a powerful advantage over their competition in the marketplace.

Branding Power and Marketing Plan.  People buy from companies they know and trust.  And the more they see and hear about a company, the more they tend to trust it.  By pooling all of their money together, franchisees are able to build a strong nationwide brand that benefits all franchisees equally.  It’s truly a case where the whole is greater than the sum of the parts.

Startup Assistance.  Getting started is one of the most critical periods for any new business.  The franchisor has been through the startup process many times and is experienced at making the right decisions.  Franchisees weather this timeframe successfully because they have the support and expertise of the franchisor behind them.

On-Going Support.  Once the doors are open and the business is up and running, the franchisee has the on-going support of the franchisor.  This is critical to success because the franchisee has an experienced mentor they can rely on to continue to make the correct business decisions that will ensure their long-term success.

To view a directory of hundreds of successful franchise opportunities, visit the BizBen Franchise Directory at and use the powerful search tools to find the perfect new franchise for you to buy.

Categories: Franchises For Sale


Comments Regarding This Blog Post


Franchises are great businesses to buy, but it's important for the buyer to read the franchise circular to make sure that there are no mandatory upgrades that will need to be done in the future. An example, I had a buyer who wanted to buy a franchise, but they later found out the seller had neglected to disclose that in 3 years time, the franchisor would make the franchisee spend up to $100,000 to upgrade their business. A potential franchisee should also know what the royalty fee is, because some places can be significant. It's worth noting that many franchisees own multiple locations to make a good living.






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