Is Owning a Franchise Right for You?
Whereas starting an independent business can come with a lot of unknowns and unpredictable legwork, a franchise provides the backing of a successful model that is already established for you. And while franchise businesses are statistically more likely to succeed, they still require a lot of work and ask that you be willing to follow a pre-written set of guidelines.
Owning a franchise is a great opportunity for aspiring entrepreneurs who don't want to start a business from scratch — but is it for you? Here's what to consider.
The benefits of owning a franchise
Whether or not you already have a particular franchise in mind, there are many positive attributes that they share across industries.
Owning a franchise allows you to capitalize and build your business on a name that people already know and trust. Getting customers to recognize a brand takes a long time, but a franchise like Tide Cleaners is well-known around the globe before you even open your business’s doors. The value of franchising with a household name brand cannot be overstated.
When you become a franchise owner, the brand you partner with is equally invested in your success, and they will apply their expertise and power to promote your business at every level. You will receive input on how to craft and execute effective campaigns of your own, as well. The franchisor may provide a marketing plan that covers a market analysis, sales forecast, and budget to help you to advertise most effectively.
An obvious advantage to becoming a franchise owner with an established brand is the access to increased buying power. The franchise may buy large amounts of inventory and equipment on behalf of their franchisees, meaning you will obtain these essential assets at a reduced cost. As a subsidiary of Procter & Gamble, a titan of household names, Tide Cleaners franchisees will benefit from the immense resources of a name that operates in a plentitude of industries.
When you buy a franchise, you are usually also buying an exclusive or protected territory to do business. Franchisors only allow a certain number of franchises to be open within a specified geographical region. You will usually be entitled to a certain area, and no other franchises (within your franchise system) can operate within that area.
Potential drawbacks to owning a franchise
While full of advantages, owning a franchise isn’t for everyone. Before investing, consider whether you may deem any of the following to be deal-breakers.
While franchise owners are still very much their own bosses, you will still be required to follow the guidelines and operational procedures laid out by your franchisor. It is important that you choose a franchisor whose goals and values align with your own to help foster a symbiotic professional relationship.
Some franchisors require a markedly higher initial investment than you would consider spending to start your own independent business. Bear in mind, however, that these price tags clearly outline where your money is getting spent, and there will be no unforeseen surprises to trip you up. And as previously mentioned, the financing options are more advantageous with a franchise venture.
When you buy into a franchise, you become intrinsically linked to the overall reputation of the brand, for better or worse. No matter how well-run, efficient, and successful your specific branch may be, your business is still tied to the national or global franchise name. If a scandal befalls the brand or another franchisee gets bad publicity, your business may be affected. Alternately, you will naturally benefit from the good name and positive publicity a brand receives.
New franchise owners are required to sign a Franchise Disclosure Agreement (FDA), which lists all of the rules, obligations, and guidelines specific to a brand. This is a legally binding contract that you will be compelled to uphold. This arrangement may feel restrictive to some entrepreneurs but ultimately is to the benefit of both the franchisor and franchisee — in that it protects everyone’s interests.
Consider franchising with Tide Cleaners
The decision to become a franchisee comes with many of the same considerations as starting any other business — it requires an entrepreneurial spirit, an innovative business mind, and a tenacious attitude. Franchising provides the tools and support that many independent ventures struggle to nail down.
Consistently ranked #1 in its category by Entrepreneur magazine and others, Tide Cleaners is excited to welcome new franchise owners to become a part of our internationally beloved brand.