Buy-In

• Franchise opportunities often offer a low buy-in rate in comparison to the business owner having to provide for all of the start-up costs for a business started from scratch. As a part of the buy-in, the franchise or parent company provides property, equipment, a building, and stock to get the franchise business started. The owner of the franchise is expected to repay the parent company out of profits over a given period of time as outlined in its franchise contract. The parent company will continue to take a percentage of the profits the franchise business makes as long as the franchise is operating. Once a franchise contract period has ended, either party can decide whether or not to renew it for an extended period. If the franchise contract is ended, the franchise business may lose rights to the franchise name.
  
  

Support

• A major advantage of purchasing a franchise is brand recognition and corporate support. Franchise owners are assisted in building a client base through the use of a highly recognizable brand name product. They are also given corporate sponsorship for a given amount of time through corporate advertising campaigns which saves the franchise owner money and reaches a broad audience base. Franchisees are also granted access to integrated company software, equipment and updates as well as new products or services.
  
  

Training

• Franchisees are given the opportunity to receive corporate training and materials for their staff. Many franchises receive periodic visits to their location from company trainers who update and assist staff members. Trainers may also provide access to new company policies or staff requirements. In the beginning, the parent corporation may provide Human Resources support to the franchise, assisting in the initial screening and hiring of new staff members. The training and support that a franchise receives from the corporation depends largely on the terms of the franchise contract.
  
  

Time

• Accepting a franchise opportunity from a corporation can be a quicker way to start your own business than beginning one yourself. The parent corporation will already have a system set in place to launch the new enterprise quickly. A large corporation will have the financial resources to move fast while a small business owner may not have immediate access to a large amount of funds. The faster the location opens, the sooner the franchiser and franchisee make money.