One of the growing business trends for entrepreneurs is to buy a franchise. Purchasing a franchise has proven to be a great option for many as they take on the security and backing of the franchisor with more reliability than the average start-up business. If you are interested in franchising, below are both the pros and cons of buying a franchise.
Pros of Buying a Franchise
Reliability of the system
When you buy into a franchise, you have the reliability of a business plan and a product that has proven to work repeatedly. You are given training on the business plan, and provided the mission at the beginning of the purchase, thoroughly understanding everything from operations and inventory to the standards of service that are required.
Corporate Support and Training
One of the biggest advantages that come with being a franchise owner is the support that is provided by the franchisor. If at any point you find that sales are falling and you need some assistance with moving your product, corporate will come in immediately with assistance.
Training is a big part of your relationship with your franchisor. In order to maintain continuity, consistency, and new product delivery, training throughout the year is essential. It is important that staple products of your franchise are promoted and found consist throughout all locations, no matter how many franchise owners between the locations.
The Benefit of Brand Name
Branding of a franchise is central to its marketing. The customer base behind the brand instantly becomes your own customer base once you buy in and begin operating your location. Also, marketing supplies and resources are also provided to the franchise owners periodically for any new promotions with the franchise and to stay current.
Buying Power Bonus
Like the brand, as a franchise owner, you have a power bonus when purchasing inventory or equipment with suppliers. Because you are associated with a franchise, you are entitled to any special prices, products, and equipment, prompting lower costs. The negotiation for many of these items has already been discussed with the franchisor, limiting your stress on prices and the ability to just place the orders.
Retaining Quality Staff
When you buy into a franchise, you can expect potential employees to apply to your location because of the brand and reputation of the franchise. You are able to recruit the best staff members from a large supply of applications and maintain them through standard training from the corporate office.
Cons of Buying a Franchise
When you buy into a franchise, there is a “buy-in.” Before someone can purchase a franchise, they must first pay a portion of fees and start-up costs, as this shows the franchisor that there is financial stability to go with your interest.
The marketing supplies and discounted inventory comes at a price. Annual fees that cover the marketing and other services provided by the franchisor over the course of the year are required by the franchise owner. If the year was not as profitable as in previous years, these fees can be steep.
Why Twin Peaks?
If you’re searching for a quality franchise to invest in, look no further than Twin Peaks. We are the ultimate sports lodge. Our restaurants feature the most relevant sports events, games, matches, fights, and highlights in an authentic lodge atmosphere; a proven business model that champions our signature 29° man-size beers, made from scratch food, and the Twin Peaks Girls. The Twin Peaks menu is the innovative gold standard for the industry, with rotating local beers and in-house brews always on tap. This is the restaurant that encourages every guy and guest to embrace their inner lumberjack.
Investing in Twin Peaks requires an asset liquidation of $1,750,000 minimum, a net worth of $5,000,000, and the security of financing from a third party. If you are a highly qualified developer and operator meeting these criteria, contact us here for more franchising information.