Why Franchising Is a Good Investment

Every business owner faces risk, but franchising helps mitigate that risk. To understand why franchising can be a smart investment, 1851 Franchise spoke with Luke Christian, CEO and founder of Surcheros.

A Built-in Support System

One of the primary attractions of franchising is the built-in support system it offers. 

“Franchising exists as an attractive investment option because support, guidance, buying power, brand recognition, and guidance are in place from day one,” said Christian. 

This support structure is invaluable, especially for new business owners who will be facing the complexities of owning a business for the first time. With a franchise, much of the groundwork is already laid out, reducing the risk and uncertainty that typically accompany new ventures.

The franchisee is not the only one who benefits, however; the franchising model is mutually beneficial for the franchisor, as well. 

“We believe that when an individual or group invests in our business, we are giving them a template for potential success in their market,” Christian said. 

This mutual relationship ensures that both the franchisor and the franchisee are invested in each other’s success, creating a powerful incentive for teamwork towards growth and development.

For those considering franchising, selecting the right opportunity is crucial. Christian advises prospective investors to find an organization that aligns with their personal values and passions. But more importantly, be sure to find a team you can trust.

“It’s really pretty simple when you break it down: work with people who you would want to be around,” he said.

Misconceptions About Franchising

While franchising has many benefits, there are some stigmas surrounding the concept, many based on misconceptions. One prevalent myth is that franchising is an “easy” pathway to business ownership. 

“Our Surcheros franchisees are some of the most talented and hard-working individuals I’ve had the pleasure of collaborating with, and each of them has navigated seasons of success alongside tougher times,” Christian said.

While the support system is robust, success still requires dedication and hard work. Especially in the beginning, franchisees can expect to put in some long hours and plenty of effort.

Another misconception is that franchising stifles creativity since franchisees have to adhere to the prescribed model and systems to help maintain brand consistency. In reality, some franchises are more prescriptive than others and it’s all about finding the right fit.

“We challenge our franchisees to make their location their own by getting involved with local organizations and events of their choosing and we always welcome new ideas and feedback within the system,” Christian said. 

This flexibility allows franchisees to bring their unique touch to their business while benefiting from the established brand and support network. 

Franchising is a Safer Investment

While no entrepreneurial venture is without risk, franchising with a good brand provides a safer avenue to business ownership. Franchisees benefit from a tried-and-true business model and an experienced leadership team. Beyond that, franchisees also become a part of a community with other franchisees within the brand’s network. This sense of community and shared purpose can be incredibly motivating and lead to insightful collaboration.

Being a business owner means you can work for yourself, but becoming a business owner as a franchisee means you don’t have to do it by yourself.

“We like to say at Surcheros that together is our favorite place to be,” Christian said, “and this is echoed in the franchise model – we are better and stronger together.”

Interested in learning more about franchising? Check out the following:

• 1851 Growth Club
• The Importance of Comprehensive Training in Franchises
• Top Insights for Franchisees to Successfully Navigate the Franchise Renewal Process