HomeInspireDown to Business

Why franchising is a smart business solution

Why franchising is a smart business solution
Franchising is not typically the first option entrepreneurs instinctively consider in their journey toward business ownership or investing. However, certain pitfalls that entrepreneurs and investors want to (and should) avoid can be addressed through a franchising business model.
As innovators embark on their entrepreneurial journey, they typically seek out an issue, niche, or product to capitalize on opportunities that will benefit and empower their community. Taking the leap into franchising can provide one with the ability to build new locations with less capital, mitigate stressors in daily business operations, and lower their overall risk.
Starting a business from scratch, especially without access to the support and mentorship that others may have, can be a daunting task. Crystal Bethea, the owner of C3 Wellness Spa — a holistic wellness center in Central Florida — explains that while her desire to help improve the overall health and wellbeing of her community was strong, the overwhelming aspects of being an entrepreneur made it challenging to execute her vision quickly. Now, she is part of just the 6.8 percent of Black franchise owners.
Image of Crystal Bethea, the owner of C3 Wellness Spa
As a US Army veteran, licensed medical massage therapist, and experienced cosmetologist, Bethea was determined to impact her community. Inspired by her family of fellow veterans and nurses, and after seeing the benefits holistic care had on herself and her family, it “became a necessity to share that knowledge and help other people.” She is proud to accept major medical insurance at her facilities, as well as VA benefits, to make accessing care as easy as possible for her community.
C3 Wellness Spa, with two locations in Kissimmee, Florida, continues to empower its customer base through its specialized approach to treating physical ailments with a complete, comprehensive care model. Bethea strives to evolve and explains that, through the franchisee’s networking and marketing efforts, clients — namely business owners — can approach C3 Wellness Spa for support whenever needed.
Jason Stowe, vice president of franchise development at Cyberbacker, offers a different but valuable perspective. “Cyberbacker focuses on providing clients virtual assistants at an affordable price point,” he explains. “Our new franchisees are mentored by three support staffers with well-honed expertise in sales, onboarding, and client relationships,” echoing Bethea’s earlier sentiments.
Image of Jason Stowe, vice president of franchise development at Cyberbacker
The franchise support team at Cyberbacker checks in with franchisees regularly to ensure their progress, and is available to answer questions and provide solutions whenever issues arise. While entrepreneurs understand that risk-taking is an inherent part of the game, ongoing support and training, marketing, supplies, inventory, and networking are essential pillars many must bear in their quest for success.

A lower-risk option

For many, franchise business models provide established branding, a pre-identified consumer base, and the ability to adapt to market trends to grow their reach quickly. Additionally, they can negotiate savings to buy supplies at wholesale prices and have access to financing options often unavailable to entrepreneurs who start independent businesses.
Dimitrios Topaltzas, a serial entrepreneur and innovator with years of experience in the wireless telecommunications industry, offers another unique perspective. His next avenue is leading the expansion of VentureX — a premiere co-working space provider — to the east coast, starting with the vibrant community in Maryland.
Image of Dimitrios Topaltzas, a serial entrepreneur and innovator
As Topaltzas puts it, “Franchising is a smart way to start a business, particularly for those new to entrepreneurship. The proven business model and brand recognition that come with franchising can help mitigate risks and set you up for success.” He adds that making a sound investment includes examining the resources you need to succeed and the avenues that can provide that for you.
However, it is essential to note that franchising is not a one-size-fits-all solution for every entrepreneur. “Franchise owners are, at times, beholden to certain factors,” Topaltzas warns.
Before deciding to franchise one’s business, entrepreneurs should carefully consider the associated costs and fees, as well as the franchisor’s track record, reputation, and support services. In fact, the International Franchise Association (IFA) reports that, of the 105 businesses that began selling franchises in 2008, over 40 had not reported the sale of their first unit by the end of 2009.

A pre-established business blueprint

It is also crucial to conduct thorough market research and due diligence to ensure that there is demand for the franchise in the target location. “Nevertheless,” Bethea notes, “It’s a great way to get into a business and have a blueprint to work with, and it’s also a way to be part of something bigger than yourself.”
For entrepreneurs seeking an immediate start, the opportunity to have a blueprint and be an early part of a growing business must be noticed. It can also offer entrepreneurs a sense of community and collaboration.
“Franchising gave me a support system, there are so many individuals out there who could benefit from our services,” Bethea adds, “and franchising allows us to reach them in a way that we couldn’t do on our own.” In addition, there is plenty of opportunity to tap into different industries and markets, a beneficial factor for those who want to mitigate risks and expand their business knowledge and experience.
While franchise owners may have less control over certain aspects of their business, such as marketing and pricing, they can benefit from established branding and a proven business model. In addition, the support and training provided by franchisors like Cyberbacker, Stowe notes, is critical for scaled entrepreneurial success. He says entrepreneurs gain access to a network of experienced support staff dedicated to their success by becoming a franchisee.
These support staffers are experts in areas such as sales, onboarding, and client relationships, and they mentor new franchisees to ensure they are on track to achieve their goals. Additionally, the franchise support team at Cyberbacker regularly checks in with franchisees to monitor progress and offer solutions to any issues that arise.
“Entrepreneurs understand that risk-taking is part of the game,” Stowe says, “but having a support system that includes a community working towards the same goal makes all the difference.” Particularly if the support system includes ongoing training, marketing assistance, access to supplies and inventory, and networking opportunities, with franchising, entrepreneurs don’t have to go it alone — they have a team of experienced professionals on their side.
Banner image credit:  Photo by Austin Distel on Unsplash

This post contains affiliate links, so we may earn a small commission when you make a purchase through links on our site at no additional cost to you. Read our disclaimer

Loading up next...