Many North Carolina residents shop at franchises every day without even realizing it. Because the franchise model can be so successful, businesses often use it as a way to expand rapidly while taking advantage of the franchisee’s “pride of ownership.” According to the U.S. Department of Commerce, one-third of all retail sales revenue in the United States comes from franchise businesses.
A person who has no experience operating a business might do better to open up a franchise rather than start their own company. A franchise offers a ready-made business structure that can help a person with little business experience navigate business ownership for the first time. Most franchisors will provide operating manuals, training programs and personalized support services to new franchise owners. Franchise owners will also enjoy the simplicity of offering uniform products and services.
In addition to support from the franchisor, a franchisee will enjoy the benefits of using an established brand identity. Customers who are already familiar with the brand will recognize the exterior appearance of the new franchise, and they may be more likely to visit the new franchise than an independent business that is unfamiliar to them. Franchise owners may also benefit from group advertising that is shared by the whole franchise community.
While there are many benefits to owning a franchise, purchasing a franchise model does not guarantee success. A potential franchise owner should think carefully about the location of the franchise and whether there is enough customer demand for the franchise in that area. Before buying or selling a business, it might also be prudent to consult an attorney.