Franchising makes sense because it typically reduces your risk as a business operator to work within an established system and brand versus rolling the dice with a new and untested concept.

Some of the most important advantages include:

An established brand – franchises often sell products with regional, national, or even global recognition. A hungry traveller stops at McDonaldÕs because she knows what a Big Mac tastes like. Such brand-name clout helps your business in two ways. It increases revenue by bringing in customers, and decreases the amount of time and money you have to spend on marketing.

Volume purchasing power – franchisors buy parts, raw materials, or ingredients in bulk, and therefore can negotiate far better deals with suppliers than an independent small business owner can. Those cheaper supplies allow you to charge customers less and to increase your profit margins. Many franchises also offer centralised purchasing, which frees you from worrying about how and where to buy many of your supplies.

Advertising – many franchisors provide constant national or regional advertising (ever had a McDonaldÕs jingle stuck in your head?). Furthermore, two or more nearby franchises can pool funds and advertise together.

A proven business model – many franchisors have succeeded for one major reason — their business models work. Moreover, your franchisor probably has encountered — and overcome — most of the problems youÕll face. You can benefit from that experience and avoid a lot of costly trial and error.

Kevin Bugeja at Franchise Selection has been involved in franchising as a franchisee and through franchisee recruitment.