Should I buy an established brand?

 With thousands of established franchises and business opportunities available, budding entrepreneurs have plenty of options to choose among. But what are the advantages of starting a franchise over building a concept from scratch?

Prior to purchasing her own TWO MEN AND A TRUCK*® franchise in Smyrna, Ga., Holly Stewart ran 10 locations across five franchises. Her experience with the company made the decision to purchase her own store an easy one.

“I actually started looking at other franchise businesses, but I chose TWO MEN AND A TRUCK® because it's what I already knew,” Stewart said. “When the opportunity came open to buy one of the locations I had already been running, it just made sense.”

Having inside knowledge of a brand is an understandable advantage, but her decision was based on more than just familiarity with the company—Stewart had the support of an entire system.

“I think the franchise model is great and it allows a small business to have a lot of customized, professional resources at their fingertips that they otherwise wouldn't already have,” Stewart said. “Brand recognition is key, too. Becoming a franchisee provides the best of both worlds—you have the freedom and independence to own your own business, but the backing of a whole group of people who have been there before and are ready to guide you toward success.”

Kevin Olson, owner of The Cleaning Authority (TCA) in San Jose, Calif., had spent more than 20 successful years working in corporate finance. When he decided to go into business for himself, he chose to go with a brand that had an established and proven model for success.

“The support that The Cleaning Authority organization provides is fantastic and something I could never replicate on my own,” he said.

Everything from IT and systems support to marketing and public relations, Olson said that the company provides support that he would otherwise be unable to replicate or afford if he started his own business from the ground up.

“If franchisees leverage the support provided by TCA Corporate, they have greatly improved their chances of success and removed a lot of stress,” he said.

For others, the idea of starting from scratch is just too exhausting.

Jim Harmer discovered Lenny’s Sub Shop while commuting back and forth from Tampa Bay over an eight year period. He and his wife Karen made it a point to stop in the eatery each time they made the trip, so when he decided to go into business for himself; he chose a brand that he respected as a customer.

The 50-year-old Lakeland, Fla. resident considered all his options. Initially, he thought about opening his own store and looked at other established sandwich shops, but in the end he chose to go with Lenny’s Sub Shop.

“I wasn’t interested in starting from scratch and trying to make up all sorts of different sandwiches and menu items,” Harmer said. “You need to have a unique premise that would appeal to the general public. What I see in Lenny’s is a high-quality sandwich shop that I truly think has as good a chance as any to be the next big franchise.”

For Right at Home* franchisee Robert Hoffman, 57, buying into a franchise instead of building a business from square one wasn’t an easy decision.

“The decision to go with an established brand as opposed to a new concept took some time,” Hoffman said. “When I decided to start my own business, I initially looked at starting from the bottom and working towards creating a business of my own.”

Having spent his entire career in working in the corporate end of retail, Hoffman created several concepts and designed business plans, pro forma budgets, and he even discussed partnership opportunities.

“I always felt that I could come up with a basic concept, even develop a working business plan,” Hoffman said. “But once I saw the benefits of franchise partnership in the areas of marketing and sales training, and in the recruitment of employees and labor laws, I was a believer.”

Disheartened with the concept of “big business,” Willy and Karen Papke realized that their combined years of corporate experience had prepared them to go into business for themselves. Owners of two Philly Pretzel Factory locations in New Jersey, the couple chose an established brand to help them get the ball rolling.

“There were two major factors that drove my wife, Karen, and I to an established band: time and design,” Papke said. “Being in our 40’s and early 50’s, time to profitability was an important factor. Working with an established, high quality band such as Philly Pretzel Factory allowed a considerable reduction in that time.”

For those considering whether to purchase a franchise or start a business from scratch, Papke offers some advice.

“Make sure that you consider all of the time and expense of starting it from ground zero,” he said. “It takes time and money to work the bugs out of the product and get the right business formula for that product. Yes, you will have to pay for the work that has been done by a franchisor both now and in the future, but if the franchise is a good one, they will continue to help move your business forward faster than you could on your own.”