You can own a Wendy’s Restaurant without possessing a single share of Wendy’s corporate stock. Without even having a daughter named Wendy. In doing so, you can draw customers who have never been to your city before but feel familiar with your restaurant because they’ve visited and enjoyed their meals at dozens of other Wendy’s fast food eateries across the nation.
That’s the magic of buying and operating a business franchise. While on the one hand, it’s your own brand-new business, on the other hand, it’s a concept that’s been tried and tested successfully for years. It’s a known entity to all of your customers — even on your first day.
Like any self-owned business, your success is in your own hands. You just have more support and expert guidance than most startup bosses have.
So What Is a Franchise?
A franchise is a business based on the brand, image, signage, practices, standards, and culture of the parent company of the same name. This previous company is known as the franchisor, while the new business adopting that image is the franchisee.
Here’s how franchising works: After a certain amount of time in business, some companies come to feel that they can “package” their business model and see it successfully replicated by other entrepreneurs. These entrepreneurs buy the rights to use the parent company’s way of doing business, down to the name of their company, the signage, employee uniforms, training, and other elements and aspects of image and performance.
Benefits of Operating a Franchise
The advantage to the franchisor is that the company can grow quicker, with locations all over the region, the nation, or the globe, without having to pay for them. In fact, the franchisor will get paid by the franchisees who help them grow the corporate brand. A corporation might otherwise have to invest millions or even billions of dollars to grow at that pace and quickly hire tens of thousands of workers.
The franchisee — the entrepreneur choosing a franchise — benefits by aligning with an older, larger company with a presumably well-established, respected brand. Customers who’ve had good experiences at other locations will count on the same level of excellence as yours because, in their minds, it’s all one company, just a different location.
This is an advantage for you, the franchisee, as long as all previous customer exposure to the brand has been positive. You get to benefit from that history even though you’re a new business owner.
Despite this big-name guidance and direction, you’re on your own as a franchisee. You own the business. The bottom line is that you’re your own boss, which is what every entrepreneur wants to be in the first place.
Big city or small town dweller? Doesn’t matter where you live. American consumers patronize successful franchises everywhere. There are top franchises for small towns and big cities alike.
But at what cost to you, the entrepreneur? Good question.
What Does It Cost to Buy a Franchise Business?
The cost could be well into six figures or beyond — or a fraction of that amount. It depends on the franchise, the location, your startup needs, and other factors. For instance, opening in Manhattan will obviously cost a lot more than setting down roots in a small town in Kansas.
For another example of the wildly varying costs, some franchisees will need to lease or even construct a new and sizable store or other building. You might then have to stock it with significant inventory, invest in expensive equipment or gear, and have a trained workforce of dozens by your grand opening.
On the other hand, a service-oriented franchise such as an insurance agency might only have one primary asset: you. You might be able to initially run such a business out of your home with little more than the phone and laptop you already own. Your main investment costs might be in obtaining the certification you’ll need and training to operate the business up to the standards that made the franchisor insurance company successful.
How to Choose a Franchise
Most corporations that have franchise operations do a good job of getting the word out. After all, they want and need calls from entrepreneurs in order to continue to grow their companies and brands. Therefore, you should receive plenty of useful information with such search engine queries as “fast food restaurant franchise opportunities” or “how to buy a (name of company) franchise.”
When looking into how to choose a franchise business model, you might also simply go to the website of a company that you know is franchised and find the information you need there.
That’s only the start, of course. Your franchisor representative will tell you the specifics of how to own a franchise within their organization. They’ll want to know whether you have the funding and qualifications to successfully open a franchise that will enhance their corporate name and brand.
They’ll also tell you if they have openings in your requested dot on the map. They might turn you down if you live in a small city with three or four franchises you want. After all, it’s in the best interest of the franchisor and franchisee alike not to cannibalize existing locations with additional ones that will act as competitors and potentially steal customers.
Look to Insurance as a Valuable Franchise Business With a Low Entry Cost
You don’t have a million dollars in the bank before you start to figure out how to buy into a franchise. Who does? What you do have to possess is motivation, a desire to own your own business, a passion for customer service, and an excellent work ethic.
At Freeway Insurance, we’re looking for entrepreneurs like you. We’ll show you how to buy a franchise, step by step. On top of top-tier industry training, we bring you the guidance, support, and brand strength of one of the largest and most reputable personal lines in the United States. We’ll give you the fast guide to buying a franchise.
The entry cost is low, and we have franchise opportunities all across the country. Tell us where you live or want to operate a business, and we’ll tell you what’s available.
Start the conversation. We welcome motivated entrepreneurs who are looking to become their own boss with an insurance franchise that carries the Freeway name and brand.
Find out more by contacting us online or calling (877) 822-3024 to speak to a representative today.
