Benefits of Buying a Franchise

Starting up a business is a calculated risk. It is made all the more so when figures suggest that around 4 out of 5 independent businesses cease trading within five years from their launch.

A successful business requires the right formula, which is made up of everything from product range, promotional strategy and pricing, to location, resourcing and the use of technology and systems. There are a lot of traps for the inexperienced - hence the major reason people buy franchises. They buy the experience and the formula from the franchisor in order to minimise the risks and increase their chance of success.

Franchising has yet another key inherent benefit that influences franchisee success. The franchisor relies on your success to reap its own rewards, which means that there are real incentives for the franchisor to assist you in achieving those rewards. Good franchising is a partnership between franchisee and franchisor, and well-structured franchise systems ensure that franchisors have the necessary incentives, as well as legal obligations (via the Franchise Agreement) to provide you with the level of support that an independent business owner could never achieve.

Specific Advantages

Some of the more specific advantages to franchisees are:

  • Training
  • Ongoing Guidance and Support Services 
  • Brand Recognition 
  • Bulk Purchasing 
  • Co-ordinated Promotion
  • Minimisation of Capital Expenditure 
  • Use of Intellectual Property 
  • Territorial Guarantees or Exclusivity
  • Financing 
  • Asset Growth

The above advantages are expanded in detail in our publication, the New Zealand Franchisee's Guide. This guide was written for the Franchise Association of NZ in order to provide prospective and existing franchisees with useful information before purchasing a franchise.

Click here to purchase a copy of the NZ Franchisee Guide from our online shop

We also encourage you to take our free online course for prospective franchisees. 

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