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Are you hoping to be a business owner one day? Do you want to take charge of your financial future by becoming an entrepreneur, working for yourself and not for others?

There are many ways of making your entrepreneurial dreams come true. In the 21st century, starting a business is more accessible than at any other point in history.

But not all business paths are created equal. Many require long, difficult journeys to get from idea to startup to the first dollar in the bank. Owning a franchise, on the other hand, offers a very clear path forward. With a franchise, you are leveraging the assets of an existing business to take a lot of the guesswork out.

It’s the fast track to entrepreneurial success and should be a top consideration when you begin your own journey. Keep reading to learn what running a franchise is actually like.

Franchise Business Definition

A franchise is another branch of an existing business. It’s when you buy the right to use a particular business’s name, trademarks, branding, knowledge, and products.

Rather than having to build your own brand, developing your own product or service, you can use someone else’s. For example, you can become one of the 38,000 people who own a Mcdonald’s franchise worldwide.

When you do this, you pay for the right to sell McDonald’s products, using their systems and processes, their equipment, and their brand. This may be a much better option than starting a brand new burger joint with no reputation.

When you do this, you have zero customers. You have to build a brand reputation and a following from scratch. While it can work, it takes a long time.

With a franchise, on the other hand, you are leveraging the brand built by others, often over decades. When you start a franchise, you have customers from day one.

Owning a Franchise

Starting a franchise is a great option for first-time business owners. As a franchisee, you are going to get a ton of help. The franchisor won’t leave you on your own.

In fact, they’ve built out an entire program that will guide you to success as a franchise owner. The company wants you to be successful. The more successful you are, the more successful the franchisor is, too.

You get to use systems and processes developed by the original company. That means processes for hiring and managing staff. It also means processes and procedures for everything serving customers to cleaning, opening the shop to accounting, and pretty much anything else.

As a franchise owner, you have the freedom to manage the business as you see fit. However, you are in effect operating someone else’s business. You own it, but you have to play by their rules. You serve their products, wearing their uniforms.

A portion of your revenue goes back to the parent company. But it’s a small price to pay for the priceless education you receive and the quick profits you can expect to make.

Starting a Franchise

To start a franchise, you’re going to need some capital. Starting a new location can be quite expensive, though you may only need a portion of that yourself.

The parent company may cover half or more of the startup costs on your behalf. Generally, you can expect to need between 25% and 40% of the total startup cost as a down payment.

On top of that, you may need to take a franchisee course before you are approved to own and operate a franchise. This can take some time but is always worth the effort.

Is a Franchise Right for You?

Many people have dreams of owning their own company, under their own brand, serving customers in their own way. It’s an extremely rewarding path to take, but it’s one that is long and difficult.

Starting a business from scratch is much easier when you already have experience managing a business. As a result, it’s often best to start your entrepreneurial career by starting a franchise.

It’s kind of like business school, but instead of walking away with a degree at the end of it, you have a fully functional, cash-flowing business that you can keep or sell.

It’s an education that actually pays you, rather than the other way around. Plus, after successfully owning and operating a franchise, you will be in a much better position to start your own company one day.

You may have the cash needed to start your business without a loan. Or, since you have experience running a business, you’ll be more qualified to get a loan or investment in your new endeavors.

So whether you eventually sell your franchise to another aspiring entrepreneur, or keep it and pay a manager to handle the operations for you, owning a franchise is a good idea for most would-be business owners.

Best Franchises to Consider

The best thing about owning a franchise is that there are so many options available. When people hear about franchising, most people think about a restaurant franchise.

That’s just one example. If you like the idea of working in the restaurant business, franchises are a solid option. But there is so much more opportunity available.

There are retail stores like 7-11 or Ace Hardware. There are hotel franchise organizations like Marriott. There are real estate offices, accounting services, fitness centers, salons, carpet cleaning services, and many other franchise examples.

Many franchises will require a large number of startup funds, as you’ll need to buy or rent a building and outfit it with all of the equipment necessary to run a brick-and-mortar location. However, there are service-based franchises you could start for far less upfront.

With a service-based franchise, you would only need a vehicle and some basic equipment. That means you have a much lower loan and can start meaning a profit much sooner than with brick and mortar franchises.

Check out this article for more information on affordable franchises to consider. After all, the lower your startup costs, the sooner you can actually get started and start building the life you dream of.

Leverage the Success of Others

Owning a franchise is a smart move. It makes business ownership much more attainable, and it makes success much more likely. It allows you to leverage the success of others while you build an asset that you own.

Looking for other articles like this? Visit our blog today to keep reading.

With millions unemployed and numerous industries struggling due to the coronavirus pandemic, some people who are out of work are considering a new career.

As positions dwindle in the fields they are familiar with, people are finding themselves forced to go outside their area of experience. And for some, that Plan B could be a blessing in disguise.

Owning a franchise has gained popularity in recent years, even in times of economic prosperity, as individuals have looked for a “second act” in their professional life. Franchise sales often do well in a down economy because unemployed people are tired of the lack of control they have in a corporate setting and are ready to become their own boss. Of course, there are also the additional dangled carrots of potentially more income and freedom.

In my world of franchising, pest control, we are seeing some people who have been furloughed in other industries becoming interested in being franchisees. The restaurant, hotel, oil and gas, and airline industries have been hit particularly hard in this COVID-19-caused recession. Some jobs in these and other fields may not be coming back.

But the good news is that many of the people whose jobs have been eliminated or reduced have the skills associated with running a franchise successfully. Those skills span the spectrum from leadership to business experience, discipline, technology knowledge, and communications. For many of these displaced professionals, franchise ownership may be a natural fit.

Becoming a successful franchisee takes hard work and some up-front money. Getting business loans can be tough in today’s economy. Franchise ownership is more attractive to those with a nest egg or a nice severance package that affords them the flexibility to purchase a franchise. It’s also important to note that “freedom” is a relative word when owning a franchise; in addition to long hours while getting the business established, remember that it was somebody else’s business idea, and you have to follow the script of operating the franchise.

But more and more, franchising is something out-of-work individuals with money to risk and a desire to run their own business want to consider. It requires a lot of research and intense due diligence before signing on the franchisee line. Facing life after a layoff and looking for your next move, it’s vital to do your due diligence when investigating a franchise opportunity and to clearly understand what your role will be as a franchisee.

Some of the top benefits of owning a franchise:

Experience is optional. How many times have you seen a job posting that interested you, but the experience required didn’t match up with your work history? You don’t have to worry about that as a franchisee. The franchisor provides the training to help you gain the skills to operate the franchise. A major part of what makes a franchise successful is an easily replicable system.

Minimal startup work. One of the most difficult parts of owning a business comes in the startup stage, which involves, among other tasks, writing a business plan and doing market research. But buying a franchise allows you to skip this often painful stage and hit the ground running. The template is in place, the market research for the region has been done, and the business model is well established.

Risk reduction. When someone decides to buy a franchise, rather than start a business from scratch, they have reduced their risk of failure. For one thing, consumers are already aware of the brand name, and that awareness puts the franchisee ahead of the game. The product and the system have been tested and shown to work, and the franchisee’s access to corporate guidance is a big asset in growing their franchise.

Additional support. Along with training and ongoing advice received from the franchisor, franchisees can get support from other franchisees in the company’s network. Additionally, the company itself does marketing and advertising on a wide scale that by association helps promote the franchisees’ locations.

Help in negotiating operating costs. Typically, someone starting a new business as an independent owner is out there alone trying to negotiate prices for items to get their business off the ground. But as a franchisee, often the franchisor already has relationships with vendors, giving franchisees the ability to purchase goods at discounted prices.

If you’re a displaced worker or executive, the franchise industry may be the opportunity you’ve been looking for. It could make life after the layoff better than you imagined.

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Chris Buitron is CEO and president of Mosquito Authority® (www.mosquito-authority.com), a nationwide leader in mosquito control with franchises serving communities across the U.S. and Canada. Buitron has an extensive background in franchise industries. He was chief marketing officer for Senior Helpers, vice president of marketing for Direct Energy (home services division), and director of marketing for Sunoco Inc., where he supported the company’s 4,700 franchised and company-owned rental facilities across 23 states (over $15B in annual revenues).

What Is It Like Owning a Franchise?