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Want to start a business? Four reasons to consider franchising


For many Canadians, becoming a business owner is a lifelong dream. They love the idea of being their own boss and doing something they really enjoy rather than working for a lifetime for someone else.

If you’re one of those people who yearns to be an entrepreneur, here’s a question for you: have you considered buying a franchise?

Franchise owners are entrepreneurs, with a little extra rocket fuel under the hood. Here are a few reasons to consider franchising as your path to running your own business.

You buy into a proven solution

For those entrepreneurs who start a business from scratch, there’s absolutely no guarantee of success. Heck, you can’t even know if you’ll have customers if the idea is one that hasn’t been tried before. With franchises, there are already dozens or even hundreds of existing businesses across your region or Canada that prove that the model works. Therefore, there’s less risk for you as the franchisee. You can find out how much the average franchise revenue is, which can give you some comfort that this decision will be financially viable.

You benefit from out-of-the-box processes

Because the franchisor has spent plenty on the research and development of its products, pricing, and processes, you reap the benefits of having it all established as soon as you open your doors. You don’t have to test out pricing or develop new products. Even how you train your staff is already laid out for you. Having these components of your business already established saves you time and stress, and allows you to focus on other aspects of running your new franchise.

You get resources from your franchisor

A franchise is a partnership between you and the franchisor. It’s in the franchisor’s best interest to help you succeed so that it can expand its brand and attract more franchisees. And so the franchisor will provide you with valuable resources that can help you succeed. For example: your franchisor may have established relationships with suppliers that you can rely on for the best prices and quality products. It may also offer you access to operational support through a business manager who can advise you when you have questions about how to grow your franchise. The franchisor may also be able to provide you with a business plan template that has worked for other franchisees, thus cutting down the time you need to invest in trying to figure out your best business strategy.

If you need help, you can turn to other franchisees

A franchise is also a bit like a brotherhood (or sisterhood). There is a network of franchisees all around you who you can turn to when you have questions or problems. Likely some of them have encountered the same issues and can advise you on the best path to follow. Many franchisors will send new franchisees to train with established franchisees, so this is a great hands-on experience to see how the business is run and get ideas for your own franchise. Franchising provides an established path to entrepreneurship, with less risk than starting a business from scratch.

Meridian Credit Union communications are intended for informational purposes only and do not constitute financial advice or an opinion on any issue. We would be pleased to provide additional details or advice about specific situations if desired.

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