Thinking of Running a Franchise? Here’s Why You Should

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Franchises offer the independence of small business ownership supported by the benefits of a big business network. You don’t necessarily need business experience to run a franchise. Franchisers usually provide the training you need to operate their business model.

When it comes to starting a business, many people choose owning a franchise based on the belief that success is guaranteed. Here are a few reasons why you should run a franchise!

1) Low Rates of Failure

When owning a franchise, you are essentially riding on the bandwagon of an established and success business. Compared to independent businesses, franchises are 80% more likely to succeed. On the contrary, independent businesses face a 70 to 80% rate of failure.


2) Full Guidance and Support

As many franchises are turnkey operations, running a franchise means getting full support and guidance from the franchiser. Because you are buying into an established concept, you do not need to worry about the designing of the restaurant, the menu, equipment, inventory and more. In fact, all of these are supplied by the franchiser. The franchiser is also responsible for all marketing efforts, management setup, as well as training of staff.

3) Paying Less for Inventory

As a franchisee, your franchise will be able to purchase in bulk, thus saving on inventory cost. The parent company of the franchiser is usually responsible for providing raw materials, and can easily do so by buying in bulk. In turn, the savings from these are passed along to the franchisee.

Raw good, materials and inventory tend to cost more if you’re running an independant restaurant.

4) Brand Recognition

When you buy into a successful franchise, you’re also buying into their star power and brand recognition. When the franchise is well-known throughout the region, choosing to open a new franchise can sometimes forge excitement, which leads to free PR and news coverage of the franchise. For example, franchises like Koi Bubble Tea and Llao Llao had scores of people lining up during the opening of their first outlets in Malaysia.

Owning a franchise can be like buying a business with built-in customers.

5) Earn Profits Quickly

When running an independent restaurant business, it can take awhile for your business to turn profitable.

A franchise business on the other hand has proven to demonstrate immense profitability. Even though franchises like Mary Brown, KFC, PapaRich and McDonalds have high startup costs, they are more likely to generate high returns on investments.

Actionable Takeway.

There are several good franchise business opportunities in South East Asian countries like Malaysia, Philippines, Singapore and so on. Some of the global franchise giants that also operate in those regions are McDonald’s, KFC, and Subway. Some of the region specific options are Breadtalk, ILoveYoo,PapaRich, Saravana Bhavan etc.

If you are looking for country specific lists, you can consult this South-East Asian Franchise Guide which provides country-wise, industry-wise, and investment-wise lists for several franchise business opportunities.


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