The Franchise Business Model – Pro’s Con’s And A Better Option
The franchise business model is a very popular one for people looking to start their own business. There are lots of advantages that make it more attractive than starting from scratch. But you can do better still.
It really comes down to the question of build it or buy it? I’ve been looking at a survey conducted by Franchise direct last year and wanted to share some of their findings and show why there is an even better option open to the would be entrepreneur.
Google the term franchise business model or any related terms and Franchise Direct will usually be on page one. It’s a safe bet then that their survey, whilst it doesn’t give numbers of potential franchisees polled, will be pretty reliable.
What You Want From The Franchise Business Model
These are the key boxes that people looking at the franchise business model want ticked.
I’ve taken the highest numbers from 11 of the multiple choice questions asked in the survey. Here they are:
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When asked why they wanted to start a business 66.7% answered – To be my own boss
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The most important factors they were looking for were support and training (20%) and potential earnings (27.5%)
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56% were currently employed by someone else (makes sense of the first number)
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88% researched franchise opportunities through online franchise directories like Franchise Direct and 64% through franchisors websites – probably after finding them in an online directory.
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75% were looking for a business to run as a sole trader rather than as part of a group or team.
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53% were looking at franchises costing between £5K – £50K
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61% were looking to get started within 6 months
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66% were aiming to finance from personal savings or a retirement fund.
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From 37 different sectors the highest percentages were looking at Internet businesses (27%) Business Opportunities (28%) and Food related (29%)
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Slightly more were looking for a hands on business (57%) as opposed to a managerial business (43%)
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52% were aiming for a full time business rather than part time or either.
The main advantage of the franchise business model is that, if you choose wisely, it’s been through the tricky start up phase and is a proven business. Branding, marketing materials and all the other initial ingredients have already been done. You just buy a partnership and get started.
A Better Option For Modern Times
It can however be quite restrictive. You are limited to the products and services sold by the franchise. There can be a lot of paperwork and pre-qualifying procedures to go through. They can be expensive and can be difficult to get out of, should you want to further down the line. It’s becoming a dated model.
If you are looking at the franchise business model, particularly an online business like the 27% of those surveyed by Franchise direct, here’s a better option.
The Six Figure Mentors offers a franchise style online business, which offers all of the benefits of the franchise business model with none of the disadvantages. It ticks all of the boxes that most people from the Franchise Direct survey wanted ticked.
They’ve been in business for over 3 years are debt free, expanding and are in one of the most profitable industries in today’s world – Internet marketing training. The market size is immense. There are no geographic or time restrictions and their unique digital business system and training can be applied to multiple niches.
Running an online business is worlds apart from a traditional business. The starts up costs are far less and it can be run from anywhere. The SFM’s online business model can be used to build multiple online income stream in any niche. No limits.
If you love the franchise business model and are doing your research you should make SFM part of it by subscribing for their free introductory video series on the link below.
By Dave Menzies
