The Benefits of Franchising with a Retail Business

The benefits of franchising a retail business are tenfold. When franchising with an established well-known brand, you get a loyal customer base, brand recognition and much more. Below are the top five benefits of franchising a retail business. 

No Industry Experience Needed

One of the greatest benefits of franchising a retail business is that little to no industry experience is necessary to get started. Many retail franchisors have built-in models with a step-by-step process to follow when starting their business, making getting started almost foolproof. 

”Franchising provides a consistent and well-thought-out business structure in a box, which greatly reduces the risk of failure,” said Doug Payne, serial franchise owner and founder of OHM Fitness. “Franchisees can leverage the ready-made processes and the support of the franchisor to operate their businesses successfully.”

Franchisor Support

In addition to built-in models, many retail franchisors offer support for franchisees. Some retail franchisors have networks where franchisees can talk to each other and can reach out if they run into problems unlike starting an individual business from scratch. 

“The biggest benefit is that the brand has a proven track record of success, and provides me with training and support to set my location up for success, while still allowing me to have flexibility and freedom,” said Courtney Florence franchisee of The Birthday Suit waxing spa. “The Birthday Suit's retail product line component is an easy upsell that supports the longevity and success of our services while allowing us another revenue stream to profit off of.”

Scalability Opportunities 

When starting a retail business, you have a greater opportunity to scale your business sooner than you do when starting your own business. Retail franchises allow you to start earning a profit faster because you already have an established customer base, making it easier to scale your business. You may also be able to secure financing for your franchise, allowing you to pay off your loan faster and reduce the amount of your own investment funds.

“Franchising creates brand awareness at a scale that is difficult to achieve as a stand-alone mom-and-pop business,” added Payne. “As more and more franchise locations open, the brand value increases.”

Low Failure Risk 

Since franchisees are getting a step-by-step, startup guide and an established customer base, the risk of failure is much lower. Franchisors are also there to provide you with support and assistance, which makes it more difficult for you to fail. Many franchisors offer marketing assistance and ready-made marketing kits, which takes the guesswork out of how to market your business. Some franchises also provide franchisees with data from their previous stores so you get a background of what works and what doesn’t, and allows you to better help your business succeed. 

Brand Recognition 

When opening a popular retail store, you get automatic brand recognition. This reduces the amount of marketing you have to do because everyone already knows the business. When opening your store, you have to come up with a name that sticks in people’s minds and also explain what your business is and what it sells.