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All franchises require an initial fee. In return, franchisees acquire:
- proven business models
- intense training that rapidly makes new owners the “best” in their respective industries (enabling rapid career transitions)
- site selection, lease negotiation, and build-out services
- quick startups that save time and money
- instant name brand recognition and identities
- knowledge of the market and how to immediately gain customers
- partnership with successful franchisors and fellow franchisees
- greatly enhanced chances of success.
Those are just a few of the benefits new franchisees acquire in return for their initial franchise fees. Compare those advantages to the months of startup problems, years to build market identity, location mistakes, and learning about the business through trial and error, etc., which are the norm for new independent ventures.
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