Franchising Means Support

Over 50% of small businesses fail within the first five years of operation. That is a staggering number, especially when you consider that many of these failed owners invested huge sums, even their entire life savings, into these ventures. The rate of failure for franchise owners is notably less. There are many factors that give franchisees an edge during those critical first five years. One of the most notable is the network of support that comes along with franchise ownership.

Franchisor Support

Obviously, the bulk of the support that we are referring to comes from the franchisor itself. Franchisors want their franchisees to succeed. In fact, their very success as a franchising organization depends on the success of their franchise owners. This is not just because they generate their revenue through royalties and franchise fees, either. If franchises fail, then the brand loses appeal in the eyes of potential investors. Franchisors need franchises to succeed in order to draw in more new franchisees.

Since the success of the franchisor hinges on the franchisee, you can be sure that franchisors do everything in their power to see that their franchises not only stay in business but grow and flourish. Franchisor general offer a strong network of support to ensure that this happens. This includes market and promotions, corporate advising on administration and policy, and regular seminars and training courses for management and staff alike.

In franchising, very little is left to chance. Most franchisors conduct extensive marketing research and create overall operational guidelines based on the trends across their entire range of influence. Essentially, franchisees are given a business plan that is based on years of experience by numerous franchise owners. Most of the trial and error has already been sorted out. Franchisees have a model that is proven to work and the support of a franchising organization that wants them to succeed with their business.

Peer Support

Peer support may be one of the single greatest assets available to franchise owners. The franchising organization may offer great support, but when it comes to the actual issues that arise over the course of day-to-day operations, there isn't any substitute for practical knowledge. A franchisee has the benefit of being able to draw on the real life experience of his or her peer franchise owners.

Peer owners are those who operate under the same brand, often having successfully been in business for years. These owners intimately know the ins-and-outs of the franchise and can help a new owner through almost any situation. Peer owners that operate within the same region are an invaluable source for understanding the demographic in a specific area and finding ways to market effectively to that community.

The Two Pillars

Corporate and peer support are the two pillars which support a new franchise. The franchising organization is able to provide a view of the of the big picture and gives the franchisee the best possible overall business plan. Peer support provides the detailed view specific to the intricate issues that face franchise owners. Between these two resources there is very little that a franchise owner has to face alone, thus his or her chances of success during those fragile first five years are significantly higher than those of the independent business owner.

Check out an example of a real franchise meaning.