I have no idea where your head’s at with regards to purchasing a franchise. Or your reasons for doing so.
At the same time, maybe you’re on the fence. I get it. It can be risky to get into business, and that includes franchise businesses.
But what if you’re sick of helping your boss and/or the company you work for make money? Heck-that’s how I felt before I went into business. That said, maybe you just need a little nudge.
To put it a different way, maybe you do need a reason to buy a franchise this year. Or several.
If I’m describing you-or someone you know, you’re going to like what I’ve put together below. Why?
Because I’m giving you the 45 best reasons to purchase a franchise this year. And they’re damn good ones if I say so myself.
Will 2024 Be The Year You Purchase A Franchise?
If you’re up for it, and you do things right, this may be the year that changes everything for you.
Just imagine how you’d feel if you never had to work for someone else ever again.
If you were able to gain more control of your life. Of your future.
By owning a franchise business.
To that end, the allure and promise of franchise opportunities have never been more enticing or diverse.
Not only that, franchise ownership stands as an almost unparalleled avenue for aspiring business owners. Possibly the best business model ever created.
Additionally, the franchise landscape continues to evolve. How do I know?
Because I see it and live it every day.
From the stability and proven success of established brands to the innovation and adaptability seen in the newest emerging franchise concepts, the spectrum of possibilities within franchising continues to be vast. Over 4000 different franchise opportunities vast.
Keeping those things in mind, what follows are the best reasons to buy and own a franchise in 2024…besides an opportunity for you to make excellent money…
The Best Reasons For Purchasing A Franchise In 2024
Why buy a franchise?
Let’s see if any of the reasons I listed below are good enough reasons for you to buy a franchise business this year.
1. Interest rates for small business loans are pegged to be lower this year. As a franchisee, that translates into lower monthly payments. You’ll benefit from that a lot. After all, faster break-even times means faster profitability for you!
2. Inflation has (probably) peaked. That means franchisees nationwide will be able to purchase their goods and services for less money. That’s good news for franchisee profits. Your profits, if you decide to go this route. That said, inflation is something that’s cyclical. As a franchisee, you’ll need to prepare for that. How? By putting money aside, so you can be ready for times of higher inflation.
3. According to CBRE, Commercial Real Estate investment activity likely will begin to pick up in the second half of 2024. That translates into good availability of commercial space for your new franchise business. And open-air space will continue to increase in popularity. As will franchise businesses leasing those spaces.
4. Being part of a franchise group potentially brings stronger negotiating power with Commercial Real Estate brokers and landlords. Translation: you may be able to secure better lease terms for your franchise business.
Strong Branding As A Reason To Purchase A Franchise This Year
5. One of the best reasons to purchase a franchise has to do with branding. According to Michael Seid, “The brand is the franchisor’s most valuable asset.” Better yet, in a lot of cases the power of a franchise’s brand is instant in a local market. As in, instant recognition and credibility. Having a powerful brand name behind you when you open the doors to your new franchise can go a long way towards your success as an owner.
6. A franchise brand brings with it established materials, logos, and designs for consistency across the board. That means you don’t need to spend time designing a logo, choosing brand colors etc.
7. Brand reputation serves as another reason to purchase a franchise business. Unlike an independent business which needs to prove itself, a franchise brand doesn’t. Well not for very long-especially if it’s a big brand like Dunkin’.
8. As a franchisee, you’ll be able to immediately utilize recognized trademarks. It’s a great feeling to have a trademarked brand behind you.
9. Purchasing a franchise means you’ll have an unusual and exciting opportunity to be part of a franchise brand’s evolution and growth strategy. Especially if something like a new product introduction adds to franchisee revenue in a bigly way. And to brand equity.
10. Franchisors have the power, and in most cases, the resources, to build a strong, unique brand online. It’s something that franchisees get right away without any effort on their part.
11. Today’s franchisees have access to the latest business trends. In most cases these trends can be found in franchise industry publications and sometimes directly from franchise headquarters. The best case scenario? Your franchise business capitalizes on hot and profitable trends…quickly
Access To Best Practices, An Instant Peer Network, And An Opportunity For Personal Growth
12. Best practices are often shared by other franchisees in the network who’ve seen success with them. It’s a true win-win for the company and it’s franchisees. And for consumers/clients.
13. As a franchisee, you own a business that comes with R & D (research and development) built right in. That’s because the team at headquarters is always looking for new revenue-producing products and/or services you can add to your offerings.
14. You have an instant Peer Network: a network of fellow franchisees you can look to for support, advice, and networking opportunities.
15. Yearly franchise conventions are a must-attend. That’s because you’ll be able to meet and network with franchisees from all over the country. In most cases, they’ll share what’s working and not working in their businesses. You’ll participate in workshops. Additionally, there are usually a few fun things planned that can provide great experiences and memories.
16. When you purchase a franchise, you’ll find opportunities for personal growth. For instance, you may find that you’re becoming a better leader and/or manager of people. Maybe you’ve always wanted to become more skilled at sales or basic accounting practices. Bottom line? Those opportunities exist for today’s franchisees.
17. You’ll always be learning. Whether it’s a new way to present a product, or a better way to market your business locally, you’ll constantly be exposed to new ways of doing business and making money. As will your staff.
Valuable Franchise Articles To Help You On Your Journey
Speaking of learning, if you’d like to learn all you can about franchising, here’s a collection of informational articles I know you’ll find helpful. Let’s continue.
18. Receiving top-level, thorough training is a huge part of what you get when you become a franchise owner. By the time you’re done, you’ll know exactly how to operate your franchise business. That, in itself, is one of the best reasons to buy a franchise. And I guarantee the training you’ll get will be better than what the independent small business owner down the street got (if any).
19. Expect to receive ongoing training, too. The best franchisors schedule ongoing training several times a year. Some of the topics may include, new technology training, marketing training, and training that pertains to things like new labor laws or employee safety laws.
20. High customer service standards are an important part of the franchise model. You’ll be trained on exactly what they include, and how to implement the standards. Additionally, you’ll be taught how to teach your employees the customer service standards that are required of them.
21. Purchasing a franchise allows you to be a part of a continuous improvement culture. In a nutshell, there will be an almost constant stream of ideas for improvement. They’ll come from the staff at headquarters, to fellow franchisees and franchisee employees. And improvement can sometimes lead to higher revenue and more money in your pocket. It’s another example of why you may want to buy a franchise.
22. Franchising brings with it high customer trust. Customers often trust established franchise brands more than unknown startups or no name independent business establishments. That ups your revenue potential a lot.
23. I almost forgot about this one. It’s a doozy of a reason to buy a franchise this year. You’ll be open for business way quicker than you think. Why? Because headquarters knows exactly what to do to get your franchise location up and running. Plus, it’s mutually beneficial, because the quicker you’re open for business, the quicker the franchisor can receive royalties from you.
24. Franchisees have the benefit of a proven, usually well-established business model. One that can go a long way in helping you establish market dominance. Note: if you’d like to know a bit more about the actual franchise business model, read this article from Tulane University.
25. As a franchise owner, you’ll have instant access to the company’s Intellectual Property (IP). That’s huge, as it gives you the ability to use patented technologies and/or proprietary products/services. These are the things that only franchisees get. For example, I know several franchisors that have produced their own internal technology for purposes of marketing and operational efficiency.
26. Franchisees get access to all sorts of technology platforms, not only internal ones. That’s because today’s franchisors understand the importance of getting their franchisees access to the best tools available. Those tools can include things like HR software, employee scheduling platforms, top-of-the-line inventory management solutions…and more.
27. Operationally, today’s franchise owners benefit tremendously from specific guidelines for running the business efficiently. Most of the guidelines can be found in the extremely detailed franchise operating manual. Wait. You will follow all the guidelines, right? I hope so, because if you’re too much of a “do my own thing” person, you’re going to be throwing away your money by owning and operating a franchise.
Idea: take my free Franchise Compatibility Quiz before you start looking into franchise ownership. Let’s make sure you’re right for franchising!
You’ll Have Instant, Valuable Data On Your Franchise Business
28. In a well-run franchise system, franchisees generally don’t need to worry about not producing a consistent product or service. Of course the franchise system needs to be well-run by the franchisee, too. My point? The business systems are in place to maintain consistency. But it falls on the local franchisee to adhere to the standards put out by corporate.
29. Franchisees have access to performance metrics and reporting. For instance, your franchisor may provide you with an outline of key performance indicators (KPIs) and reporting requirements. This often includes things like inventory turnover rates, sales target numbers, optimum inventory turnover rates, customer satisfaction metrics, and financial reporting standards. Why are these KPI’s important for franchisees? Because regular reporting helps monitor performance and identifies areas for improvement for franchisees and the system as a whole.
30. Franchisors with specific, well thought out operations strategies tend to be winning organizations. Typically, these strategies are crafted subsequent to the overall business strategy, and they play a vital role in supporting the organization’s strategic direction. Depending on which stage of growth the franchise company is in, that direction could involve unit growth, an increased online presence through online PR and the like, or creating new, high profit margin products and/or services for franchisees to offer. You?
31. In addition to looking at KPI’s, one of the top reasons to purchase a franchise has to do with the serious amount of data you’ll have access to. I’m talking both data and analytics. The exact things you’ll want to have in front of you to do things like tightening up your expenses or increasing your advertising spend. And so much more. In most cases, way more than the independent business owner down the road can lay there eyes on.
32. The marketing and advertising assistance you receive as a franchise owner is worth it’s weight in gold. It’s a great feeling to know that you won’t need to be the one to comes up with (hopefully) memorable taglines, jingles, and all of the other assorted things startups need to do. That’s because you have a full-time marketing team behind your local franchise business. Like wow.
For example, check out this television ad that was produced for Subway:
33. You don’t need to have a background (or a degree) in marketing to own a franchise. Wait. Unless it’s a marketing franchise! My point? The majority of the marketing tactics you’ll be engaging in will be put into motion by franchise headquarters. They’re marketing strategies that have been proven to be successful. That leaves you time to tend to other things. Like increasing your revenue and your bottom line!
34. As of this writing, Social Media marketing is crucial to the success of your franchise business. That’s because it’s one of the best ways to spread the word about your brand, promotions you’re having, and store updates. Again, it’s not something you need to have deep knowledge of. Because in a perfect world, the marketing department at franchise headquarters does.
35. Online marketing, which is another thing that can and does impact your brand is also handled by corporate. Everything from your local online presence on Google and Bing, to the use of proper keywords for national and local exposure, is handled internally by the marketing team or a Search Engine Optimization (SEO) specialist/firm. Note: SEO is expensive. Especially for independent small business owners. But not for you, which is another great reason to own a franchise.
36. If you own a franchise that has other locations near you that other franchisees own, you may have an opportunity to participate in a Cooperative Advertising program. That’s where a a group of franchisees pools their resources (marketing dollars) for the common good, and in doing so, can get more bang for the buck in their local market. In other words, more ads and more reach.
37. Today’s franchisors have relationships with lots of vendors. These relationships can benefit the franchise system as a whole along with franchisees on the local level. That’s because these relationships can usually result in favorable terms and discounts for the company. And these can be passed down to you, the franchisee. It’s group buying power at it’s best.
Top Reasons To Purchase A Franchise: A Protected Territory And Business Expansion Opportunities
38. Let’s talk territory. This is a biggie. When you’re a franchisee, 9 times out of 10, you’ll own a protected territory. In essence, that means no other franchises can be sold in your territory. However, some franchisors allow other franchisees to market in your territory. How do I know? Because it happened to a client of mine.
In a nutshell, he purchased a franchise in the restoration space, and one day he called me to tell that another, rather aggressive franchisee one county away was marketing in his territory. Turns out that his franchise territory was only protected from other franchises being sold there. Not from marketing there. So make sure your territory is truly protected.
Note: your franchise attorney can tell you if it is or not. I’m still angry about it, and when my clients look into the restoration space, I always tell them to not look into the franchise opportunity in question. Because they refuse to change their terms.
39. You may have an opportunity to own more than one location. if that happens, you’ll be known as a multi-location franchise owner. And it’s a wonderful opportunity if you can be part of it. If you can, one of the things you’ll benefit from is scalability. because once you’ve opened and operated one location, you already have a good idea of how to set up location #2. And #3. And so on.
In addition, owning multiple units can expand brand presence, making it more recognizable and potentially attracting a broader customer base. And finally, owning and operating multiple franchise units means more opportunities for revenue generation, spreading the risk across multiple locations and potentially increasing overall profits. Good stuff. All in all, the profit potential that exists as a multi-unit franchisee is one of the best reasons to own a franchise. You should do it if you can.
40. In franchising, you have the option to own one franchise location, or as stated above, several. For instance, maybe you’re not a high-risk person, but the idea of owning multiple franchise units appeals to you. if that’s the case, you can start with one franchise and grow it one by one (as long as there’s territory available).
But if you’re more of a risk-taker, you can sign a multi-unit franchise agreement upfront. Doing that will require a higher initial investment, but the franchisee fees are usually discounted because you’re guaranteeing you’ll build-out more than one unit. The caveat? You’ll need to get your franchise businesses up and running within a specific time frame. That said, it is possible to own only one franchise unit and do well, financially. It just depends on the type of business it is.
41. If you’re someone who likes to be involved in the community, franchising is right up your alley. That’s because you’ll be the face of a local small business. That means exposure to all sorts of things. Do you want to participate in local charity events? No problem. Your franchise business can be part of any charity event or charity drive. Would you like to have a voice in how things are done, business-wise in your community? Join your Chamber of Commerce and get involved. Better yet, try to get elected or named to a high-level position in the Chamber.
All in all, visibility like that can help keep your business front and center. If you become a franchisee, there are endless opportunities to get involved in your community. And pretty much all of them will give you a great feeling.
42. Many franchises are increasingly focused on sustainability, providing opportunities for franchisees to participate in eco-friendly practices and initiatives. Doing business in an eco-friendly way goes a long way these days. Plus it’s community centric. As you’ll see, there are way more people in your community who care about our planet than you think. So if you’re franchise engages in “green” practices, don’t be shy about sharing it.
A Franchise As A Family Business?
43. Franchises can be an excellent platform for building a family business legacy, passing on the franchise to future generations. Legacy Building: Create a legacy business that can be passed down through generations.
44. When it’s time to sell your franchise business, you’ll have transferable assets like equipment, inventory, and leased premises that can add a lot of value to the sale. In addition, franchisees tend to possess highly organized financial records. Having these in place can streamline the due diligence process for potential buyers and their accountants.
45. When you sell a franchise, you may have a better chance of getting your asking price. Why? Because your business buyer isn’t only buying a business. They’re buying a brand, and everything that goes with it. And they’re also buying into a proven business system with all the tools they need to prosper from day one.
The Best Reasons To Buy A Franchise In 2024: Wrapping Things Up
In summary, if you’re looking to purchase a franchise this year, I just gave you the best 45 reasons to do so. These aren’t just perks; they’re the meat and potatoes of a smart move to get in business for yourself.
Plus, as I said, you’re not just buying a brand; you’re snagging a battle-tested business model that’s been fine-tuned for maximum success. Plus their technology and their national and local marketing prowess.
Moreover, don’t overlook the support you’ll receive from franchisors. In fact, experience tells me that the top franchisors will have your back through thick and thin. I’m referring to franchisors who understand that happy, money-making franchisees are their keys to the kingdom. (I like that Kingdom stuff.)
On Getting Involved Locally And More
When you own a franchise, you’re able to get involved in your local community in many different ways. It’s a huge benefit that’s not talked about nearly enough.
What about when it comes time to sell your business?
As you’ll see, owning a franchise that has a 10-year agreement is like having a built-in exit strategy for what’s next in your life. of course you can probably renew your franchise for 5 or 10 more years, but you don’t have to. You can sell it!
And when you do sell it, you’ll have built-in cash flow along with a built-in franchise business system you can offer potential buyers. How great is that?
It’s your move.
P.S. if you don’t want to do this alone, check out how I can help you get where you want to go.