Back in the late 1800s, John S. Pemberton -- one of the earliest franchisors in the United States -- licensed a few select people to sell a little drink he concocted at his pharmacy which contained sugar, molasses, spices, and, as legend has it, an illegal substance. After some recipe changes that made the beverage less addictive and more legal, that drink is known today as Coca-Cola.
So, why would someone purchase a franchise rather than open an independent business? A few good reasons favor franchising over going it alone. To start, a franchise can offer the owner a proven structure for opening, operating, and growing their business. It is a turn-key solution for someone looking to escape the corporate 9-5 grind or make a lifestyle change, which can offer more flexibility and freedom while still earning an income. In other words, a franchise offers the small local business owner some efficiencies they would not be able to realize on their own.
Some of these efficiences include:
When you buy a franchise, you are buying a BRAND. That brand has been built up by the franchisor, and when you come in as a franchisee you can trade on that brand and accumulated good will. Also, the products and services you have to offer customers as a franchisee have been proven through years of sales and research.
The franchisor has also developed training methods and operational procedures that can make the process of opening your business much simpler. Training generally includes time spent at the corporate headquarters, and onsite training at your location, to get you up-and-running smoothly. A good franchisor also offers continuous, ongoing operational support – so, as a small local business owner, you are not alone.
Most franchises have an AD FUND which all of their franchisees contribute to – this increases the buying power for marketing materials and support. In this way the local franchisee has access to professionally designed and printed materials which would otherwise have been unaffordable.
As part of the larger BRAND, local franchisees are afforded the opportunity to participate in national promotions and marketing. Often a franchisor will have licensing and partner agreements with other complimentary brands, so they are able to work together on large campaigns which build the brand and drive local sales.
The franchisor will establish, maintain, and enforce product and performance standards across all franchised locations. That way, when customers visit one location they can expect the same great service and products they get at every other location. This helps build a strong brand and positive reputation which encourages repeat business and good word-of-mouth marketing for your store.
A good franchisor will develop new products, flavors, and services to increase overall sales and brand awareness. The franchisee is able to add these products and services with minimal effort since the development, testing, and training techniques have already been done for them.
"I was in the furniture business for many years, and when I started looking at franchises, I never would have thought about a popcorn franchise.
The simplicity of the Doc Popcorn model and the variety of venue possibilities makes it fun to grow and easy to manage multiple locations.
Fast forward a few years later, I now run several locations with my two sons and we are adding Dippin' Dots to our stores! We are having a great time creating smiles with our amazing products."