How Franchise Opportunities Differ from Other Types of Small Business Opportunities in Canada
There are so many small business opportunities in Canada that the would-be entrepreneur can often feel overwhelmed with the choices. In addition to deciding on what goods or services to offer, where to locate, etc. you will need to decide whether you are more suited to franchise ownership or to starting your own business from scratch. Both models have their advantages and drawbacks. And while there are many similarities between franchise ownership and any other small business opportunity in Canada, there are a few important differences that you should be aware of before you make the decision of which route you are going to take. Let’s have a look at a few of those differences:
You have to play by someone else’s rules
One reason why franchises get such good brand recognition is that franchisors set certain standards across the organization. For instance, they decide the products or services that will be offered. They have processes and procedures in place that must be followed. They may also provide support by way of marketing and brand management.
For many business owners, this is appealing. Someone else makes the major decisions and they can get down to the day to day running of the business. But for business owners who would prefer to march to their own drum, this may be a strike against franchise ownership.
Franchise costs
When you invest in a franchise, you will need to account for the franchise fee and the ongoing royalty payments. The advantage is that it is usually pretty simple to calculate exactly how much a franchise is going to cost because you are working with a model that has already been proven. Also, there are a number of different financing options available.
Starting a business from scratch will typically be slower to ramp up and has limited financial options.
Franchisees have a built in network of support
Starting a business can be both exciting and scary. If you own a franchise however, you have an entire network of support that you can turn to for help and advice. This network includes both the franchisor as well as other franchisees.
Additionally, you will usually have access to insurance, marketing tools and software offered at rates you wouldn’t be able to secure on your own.
Franchisors have already done the hard part
Anyone who has ever started their own business will be familiar with how difficult it can be to build brand recognition and trust. Franchisors pour a lot of money into their marketing and brand building efforts and this is a direct benefit to their franchisees.
Clearly, running a franchise is quite different from starting your own business from scratch. What you give up in terms of creativity is gained back in terms of brand recognition and support. To decide which business model is right for you, you must determine what qualities you value most. To explore franchise opportunities in Canada, we invite you to contact us.
