Franchise businesses have many benefits over traditional business, namely you can hit the ground running and leverage an already established, often well-known trusted brand. This means you can focus on getting to work and growing your business, instead of establishing it right from the start.
In this blog post we wanted to briefly introduce the advantages and disadvantages of owning a franchise business.
So let’s dive straight into the good stuff, what are the biggest advantages of owning a franchise business?
Established brand, products & services
A big part of starting any business is the time and costs involved in establishing your brand and growing awareness of your brand in your target market. This often means that although you might offer a high quality product or service, because you are not as well known you have to work on establishing your brand.
You also have to pour time and money into developing your products and services, often leading to some ventures that may not prove as fruitful and it may place extra strain on your time trying to fix unforeseen issues.
This is where a franchise business offers its biggest advantages. Leveraging an established brand, most likely with loyal customers in your immediate target area allows you to quickly generate interest and business. Furthermore because time and effort has been put into developing and refining a set of products and services you can be confident that you are offering your customers a reliable, quality outcome.
Support & learnings from the whole franchise business
Just like any business it’s never smooth sailing, there are always unforeseen factors and trends that can impact your business. Being part of a franchise group means that you can rest easy knowing there is ongoing support and training to ensure that your business can stay agile and adjust as necessary. Once again this means less time spent troubleshooting and problem solving (which often occurs in competition with family time).
Lower risk & often better returns
Because you can take advantage of an established brand and offering, as well as an established business model and processes, it means that there is less risk and often better returns. A very demotivating issue with some small businesses is often the unforeseen costs that can really drain cashflow and your spirit! In a franchise situation you can avoid these troubles and as a result generally enjoy better cashflow and returns.
Also because you can capitalise on established demand, you can skip over that start up period where you have to spend considerable time just focusing on ways to acquire new customers to keep the doors open.
Go into business for yourself but not by yourself
This is the final, but perhaps the most crucial advantage of a owning a franchise business. With a franchise business you can enjoy the freedom of being a business owner without the stresses and strains that often goes hand in hand with starting your own business.
We really love this quote from the IFA, “Owning a franchise allows you to go into business for yourself, but not by yourself.”
Some traditional franchise businesses do have their drawbacks, mainly in the form of ongoing fees and royalties.
When you enter into a franchise you usually have to remember you are buying into an established way of doing business, a brand, awareness and developed products and services. Therefore, although you can avoid some of the costly start-up and learning costs when you establish your own business, you often have to pay ongoing royalties and fees as a standard part of your contract with the Franchisor.
Franchise businesses can also sometimes have a poor internal culture and can be sluggish to adapt to change. This means that you should always be careful when considering the industry you are buying into as well!
Why Ella Baché is different
Our unique franchise model is built on a strong relationship between Ella Baché and our franchisees; this is because unlike many other franchise models ours does not require ongoing fees.
The model is based on allowing our franchisees exclusive rights to sell our products and treatments. Moreover to purchase many of our products a skin diagnosis is needed first. In this way not only are we ensuring a focus on driving business results for our franchisees, we also establish a win-win relationship since our success depends on the success of our franchisees.
In this post we covered some of the basics surrounding the advantages and disadvantages of owning a franchise business. If you have any questions about buying an existing Ella Baché franchise or areas where there are Ella Baché franchise opportunities, and you have a passion for skin and beauty, please feel free to contact our team with any questions.
Below are some further resources about franchise businesses: