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Why Are Franchises More Successful Than New Businesses?

November 25, 2020
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Not all franchise businesses are more successful than independent companies, but in many cases, they are. There are a lot of reasons for this. The biggest reason, of course, is that a franchise offers business owners a recognized brand. This means there is already a customer base that uses the product or service. When you start a new business, it can take years before you begin to see a profit. A lot of franchises begin showing profit in the first year. That's because customer acquisition isn't an issue. For franchise owners, there is a corporation behind you. This is something new business owners can't count on.

Franchisor and Franchisee Shaking Hands on a Business Deal
Tried and true products and services is another important aspect of franchise ownership. When you start a new business, you can't be sure customers are going to be there to show support. Franchise owners have products and services that are already being used. Customers know the products and support them. A new business owner would need to spend time and money trying to test and establish products. Many new business owners just open up their business and hope for the best. This kind of approach is risky and can result in great financial loss if it doesn't work.

Training is usually a part of franchise ownership. A successful franchise gives its franchisees training. The training is often what a new business owner needs to be successful. When you're looking at franchise opportunities, always ask about the training the company provides. The Sir Grout article Do I Need Business Experience to Own a Sir Grout Franchise? states, "When you purchase a Sir Grout franchise, you'll get the training necessary to understand the needs of your customers, how to operate your business, and learn how to communicate with customers like a professional." This is what you're looking for when you ask about training. Do you need the experience, to begin with, and does the training you receive give you the tools you need to succeed?

High Five of Many Hands Representing Many Franchisees With Their Franchisor
In short, a franchise comes with its advantages compared to starting your own business does not. That doesn't mean starting your own business isn't a good idea. Some people prefer to be in charge of every detail from the ground up. Starting a business of any kind can be risky, but building a brand new business and trying to compete with established brands is a challenge. Buying a franchise can help you circumvent that challenge. Taking the Sir Grout example here, for instance, imagine starting a new hard surface restoration business and trying to compete with the reach of Sir Grout. It would be difficult. Here's another example, J. Ferg Pros, an established home improvement company wanted to start a sanitizing and disinfecting service in Texas. Rather than start a new sanitizing and disinfecting business, they purchased a Germinator franchise. This allowed them to add sanitizing and disinfecting services to their business that consumers already know and respect. By going with the Germinator franchise, they were able to get started in the sanitizing and disinfecting business without having to re-invent the wheel, so to speak.

The Word Risk Written on Wooden Cubes and Last Cube as the Word High Witten on One Side and Low on the Other
Many business owners think of franchising as a shortcut to owning your own business. This is not inaccurate. Don't confuse "shortcut" with not having to work at it. You will still need to put in the effort required to be successful. The main difference between owning a franchise and starting a new business is that as a franchise owner, you will have access to more tools and resources, which can help you succeed faster.

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If you want to explore the franchise advantage, start right here with All USA Franchises. We are the largest FREE franchise database anywhere. That's because we're on a mission to bring you access to all of the franchise opportunities in the U.S. Whether you're an investor or entrepreneur looking for opportunities, someone looking for a franchise to buy, or a company looking to list your franchise for sale, AUF is here for you. We make it easy to find franchise opportunities. You can start your franchise search and search by industry or investment. This allows you to find the perfect franchise opportunity that will meet your needs. No matter what you're looking for, you'll find it here. We list franchises in many industries, with the details you'll need to make an informed decision.


We also provide you with an informative AUF blog that's full of helpful articles and tips for franchisees. You'll also find the latest franchise news and the latest information about the franchise events you won't want to miss. In addition to the blog and events information, we bring you a valuable resource section that helps you locate franchise advisors, franchise brokers, franchise consultants, franchise financing, franchise developers, franchise lawyers, and franchise training services. These resources will save you time and can provide you with additional franchise help when you need it.

Don't forget to visit our social media profiles, where we always keep you up to date with the newest franchise opportunities and franchise news, along with franchising events you might find helpful. There's no better way to stay on top of what's new in the industry. Let All USA Franchises be a part of your road to success.

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