Are Franchisees Really Entrepreneurs?

1. Are Franchisees Really Entrepreneurs? There is tiny hesitation that the franchise industry fascinates many entrepreneurial people, predominantly those that want the autonomy to run a business without the encounters of structuring a brand from scratch. Possibly the foremost resemblance between franchise owners and entrepreneurs is that they both relish the responsibility and encounters of owning and functioning their own businesses. The difference The significant difference between being an entrepreneur and a franchisee is that you will necessitate to create your own brand and notions for the former but shadow someone else's brand and concepts for the latter. Therefore, there’s less litheness and more conformity in the franchising world, whereas entrepreneurs can route their business however they wish. www.frantastic.in 1

2. Why entrepreneurs can be great franchisees If you've always dreamed of owning and operating your own business with trifling intervention, you should definitely contemplate franchising. Like entrepreneurship, you'll be accountable for every business function, from marketing to recruitment, and you may have the chance to unclutter novel franchises in the identical network, contingent on your original contract. The benefits of becoming a franchisee instead of an entrepreneur forming your own brand Probably the core advantage of being a franchisee is that you don't have to deal with the strain and cost of forming and launching a brand. Indeed, the persistence of franchising is to make a living by following someone else's notion, not your own. However, the latent for success can be much superior because you'll be buying a business that’s operating under franchise brands that are already extensively recognised and lucrative. Is entrepreneurial experience essential to become a franchisee? Most franchisors owners do not suppose franchisees to have experience in building their own businesses from scratch since this is not what franchising is all about. However, successful entrepreneurs can help direct the franchise through problematic times with their utter determination, negotiating skills and inclination to put very extensive hours into the job. Having said that, they necessitate being contented working within a more organized environment where they will have to follow a set of procedures and ideas that have been definite by someone else. www.frantastic.in 2

3. Franchisees must carry forward someone else’s ideas When running one or more franchise brands, you must shadow what's been set from the head office, from the brand culture to the publicizing tone of voice. This sort of environment may not always suit entrepreneurs that like to contemplate on their own feet and are impervious to following orders. However, as the franchise owner, you will have control over all everyday operations of your business and be able to make your own verdicts about how to drive the business frontward. Budding entrepreneurs can benefit greatly from franchising For a bourgeoning entrepreneur with no experience of budgeting and the tiny prospect of fortifying financing alone, buying and owning a franchise can be a much innocuous option. By interacting with practised professionals and receiving inclusive training, franchisors owners can also obtain invaluable business skills and knowledge from running an efficacious brand with an established concept. www.frantastic.in 3

4. More financing options for franchisees Banks will be more enthusiastic to lend to franchisees if the franchise has already achieved extensive success, whereas solo entrepreneurs are going to find it much grimmer to persuade people that their business plan will take off and grasp its targets. Banks with high- quality experience in franchising will be able to look at the franchise network's financial performance to regulate how much revenue your www.frantastic.in 4

5. novel franchise will obtain and whether it will be able to afford to repay the loan and interest in the timeframe of the loan bond. A big network with many highly fruitful franchises will be better placed to safeguard funding, and the franchisor may be able to endorse a lender before the franchisee signs the treaty. Entrepreneurs are big risk takers Being an entrepreneur in charge of evolving and operating your own business means you gross on all the risk. Entrepreneurs will come up with a ground-breaking idea that they trust has the latent to become a business concept, even if other people around are not so certain. If the novel business nosedives, however, the entrepreneur can incur considerable losses and may even become bankrupt, which could avert them from obtaining credit for numerous years. Franchisees don’t have to go through all the trials and tribulations of entrepreneurship You could equate franchising and entrepreneurship to cooking a tried- and-tested recipe versus concocting one from scratch. The person who prepares the tried-and-tested recipe already knows that the meal is going to taste good and be prevalent because it has already been cast off. In this situation, the cook’s core responsibility is to ensure the recipe has high-quality ingredients and the right cooking techniques to accomplish the finest results. However, if you're making formula from scratch, you can't pledge that your customers are going to like it when you model it, so you might have to make plentiful tweaks until you get just the right taste. This will gross time and cost money, and that’s before your business is making any substantial revenue. www.frantastic.in 5

6. Franchising means less flexibility, but more support Contrasting an entrepreneur, you won't have the autonomy to change your products and services or set up a novel franchise in a territory of your choice unless this is permitted by the head offices of the franchise brands. You may also have to recompense a franchisor fee, although this money will be castoff to fund training and support packages, which will style it easier for you to get your business up and running. Entrepreneurs, on the other hand, don’t have the luxury of being part of a huge support network. Even if they do form a brand and concept that are efficacious, they will still have to invest in training, marketing and further services. Huge franchisors benefit from substantial economies of scale, which means they can often offer franchisees with these services for a lesser cost, in exchange for the enduring management fee/royalties. www.frantastic.in 6

7. Conclusion: A franchisee does all the entrepreneurial functions. There is a very fine line of difference between entrepreneurship and franchise simply because franchise plays a huge role in carrying forward the legacy of the original unit through entrepreneurship skillset. Being a franchisee is an outstanding way for an individual to own and run a business. www.frantastic.in 7

8. If you are considering acquiring a franchise, you custom your entrepreneurial skills. Do your homework, investigate and research. Choose the industry you need to get into based on your background and practice. Evaluate all your options – the advantages and disadvantages – before making a verdict. Because being a franchise owner is alike being entrepreneurs – smart entrepreneurs. Virtuous franchisors want their novel franchisees to shape successful businesses as quickly and efficiently as possible. They've established a set business model for making this happen. They've learned those novel franchisees that stray from this set business model typically get lesser initial results, and that conquests their purpose. If they have a sense that you are a true entrepreneur but are enthusiastic to hold off your natural inclination to make deviations until your business is up and running well, then they're every so often happy to have you in their system. This pushes the entrepreneurship in all the franchisee. The franchisee is entrepreneurs with the minimalized risk, established system, sense of security. At Frantastic, we serve our clients with various franchise www.frantastic.in 8