Investing your money in a franchise business is an excellent way to hit the ground running. Have you ever thought about doing that? Given its home-based orientation, the BooXkeeping Franchise might be right down your alley as we gear up for the post-COVID-19 economic recovery.
In this article, we're going to touch on the benefits of the franchise model as opposed to starting your own business from scratch.
Access to Capital
Most franchises require an initial investment from the franchisee by way of an entry fee. You might already have savings, or you might need to take out a bank loan for some or all of that initial fee.
Banks are more likely to grant a loan for you to buy a franchise in a business that has a good reputation than they are to give your start-up capital for a brand new business.
The one-time payment by franchisees of the initial fee could be in the low $10,000 to $15,000 range. But it might be well over $100,000, depending on the franchise. The average initial franchise fee is around $30,000.
Royalties paid to the franchisor average at around 5-6%. This is fluid and depends on the franchise. Often, franchises with low initial fees charge more in royalties, with some as high as 50%.
You Don't Have to Do the Marketing
Marketing fees of 1-4% of the gross turnover are paid to the franchisor. The upside of this is that the franchise brand is already established, and the franchisor does all the marketing and brand promotion.
As a franchisee, you have the peace of mind of knowing what your marketing costs will be.
In a sense, you are piggy-backing on the good name of the franchisor. All you have to do is ensure customers in your location are aware of your status as a franchisee, and build up customer loyalty that way.
Benefits of the Franchise Model: You Receive Training
Experience in the business of the franchisor is not entirely necessary. Naturally, if you have had related experience, then you are at some advantage. At Booxkeeping, for example, we offer a comprehensive training program for new franchise owners.
There is a specific curriculum that includes technical training as well as training focused on sales and networking. We also provide our Brand Standards Manual for day-to-day reference.
The Power of Teamwork
As a franchise owner, you benefit from having a broader team to go to for advice and sharing. Your informal team members are Booxkeeping (the franchisor) and other franchisees. There is no need to struggle with difficult decisions.
The franchise model is based on mutual help. And you can use that support to build your business as a franchisee.
Better Buying Power
Because the franchisor is bigger than your individual franchise, it has greater buying power. This translates directly into being able to take advantage of bulk discounts for inputs. This means that your input costs are lower, which means better profit margins.
The Sky Is the Limit
As a franchisee, there is no limit on how much you can earn. Whether you are in a stay-at-home situation, a war veteran or just looking for somewhere to put all your energy and drive, the sky is the limit. So, what are you waiting for?
Make the most of the opportunity to become a franchisee. Contact us by phone or via e-mail in the form at the bottom of any one of the pages on our website.
We'll be happy to talk about the benefits of the franchise model, and our bookkeeping franchise in particular