Why Franchise?
Should You Franchise or Do it Yourself?
You've already decided that you're ready to take on a new business, but now you're facing a big question: Should you build your new business from the ground up? Or should you invest your resources in an established brand where the operating system is proven, and buy a franchise?
From a strictly statistical standpoint, franchises often represent a better
success rate than start-up businesses.
The Small Business Administration (SBA) reported that 30 percent of independent, non-franchise companies fail during their first year. Conversely, the U.S. Department of Consumer Affairs reported that less than 5 percent of franchises fail. 1
But while it's important for a business owner to see a high probability of success, it's clearly not the only factor. There are other key areas where a franchise can offer distinct advantages over a new start-up:
Costs
- Initial franchise fees can be much less costly than the research, development, and ramp-up costs associated with a new independent business.
- Franchisors have established bulk purchase discounts with vendors and suppliers - the discounts offered to franchisees can offset the costs associated with ongoing royalty payments.
- Franchisors provide services like initial training, store design, site selection, construction management, and ongoing IT and operations support. Independent businesses must pay to receive, or develop this knowledge on their own.
Marketing
- Brand recognition is one of the most frequently cited reasons for buying a franchise. The product and reputation are already established in the minds of consumers.
- Franchisors have already tested and refined marketing practices, so the franchisee can put their money and effort into established, successful methods.
- Franchisors award exclusive territories.
Training and Support
- Franchisees benefit from comprehensive initial training and start-up support from the franchisor. The learning curve is much less steep when a successful model exists.
- Franchisors have already tested and refined marketing practices, so the franchisee can put their money and effort into established, successful methods.
- Franchising puts you in business for yourself, but not by yourself. Franchisor support can mean the difference between success and failure.
Things to Consider Before Buying a Franchise
- Do you have experience in the industry you'll be working in? Are you willing to learn more about it?
- Do you have the time and enthusiasm to commit to running your franchise? Is your family supportive of your decision?
- Does the franchisor have a good record? Are its officers and staff members experienced? Are they easy to work with?
- What are the costs of opening the franchise? What are the ongoing costs? Does the franchisor offer benefits/vendor discounts that offset those costs?
- Franchise systems provide a blueprint for success. Always confirm that the franchisor has established a successful track record and has achieved financial stability.
The Yogurtini Franchise Opportunity
This is a great time to be in the frozen yogurt industry! Healthier frozen yogurt, like the yogurt offered at Yogurtini, is one of the fastest growing segments of the "frozen treats" industry. We are excited that you have chosen to explore the Yogurtini franchise program and look forward to showing you more about who we are and what makes us unique!
We have had an incredible interest in our franchising program and now is the perfect time to get involved! Thanks to our top-quality product, amazing toppings bar, unsurpassed self-service model and successful pay-by-weight strategy, we have an excellent formula for success.
