Ever thought about being your own boss? How about running your own successful business? If so, you’re probably aware that owning a franchised business is a viable path to bringing those dreams to life.
To help you understand whether franchising is the right opportunity for you, we’ve put together a step-by-step guide that carefully weighs the pros and cons of this unique business model. By the end, you’ll come away with a much clearer sense of next steps. .
Among the major advantages of franchise ownership is gaining access to systems, management training and operating principles that have a proven track record of success. You aren’t starting from scratch, in other words, which might feel akin to reinventing the wheel.
Instead, you’ll get hands-on guidance to help structure your approach across all areas of your business, from sales to strategy and business management — and everything in between. At Spherion Staffing, for example, we take proven approaches that have worked elsewhere and customize them to deliver the most impact in the markets of all of our new franchisees.
It’s an approach centered on developing strong connections with local businesses, and one that enables our network of independent, empowered franchise owners to offer complete solutions to their clients in turn. You’ll deepen your ties to the communities you serve, delivering great value at the same time that you’re growing your revenue.
Robust Business Models
Best-in-class franchises offer business models that aren’t only effective, but also simple to execute and organized around clear goals. With the right franchise model, in other words, your short- and long-term strategy and vision will always align.
At Spherion Staffing, for example, we’ll be your advocate as well as your coach, helping you grow your market share while also ensuring that you build a sustainable business practice. In fact, that commitment to longevity and longer-range vision is part of what raises the bar for all of us in the Spherion family.
We’ve touched on some clear advantages of franchising — notably, access to highly developed support resources, effective operating systems and proven business models. But at the end of the day, of course, nothing is more important than the bottom line.
How are the books typically balanced in a franchised business model? Let’s start with the revenue, since that’s easier: franchise owners usually get to keep a significant percentage of the gross margin from every business transaction, while the smaller remainder goes to the franchisor.
Also on the outlays side are ongoing expenses for which franchise owners are generally responsible. These can include:
- Rent and utilities
- Staff expenses
- Local sales expenses and advertising
- Computer and technology support fees
How all of that shakes out at the end of the day varies depending on a number of factors, including location and market. But we can tell you that in fiscal year 2018 — the most recent year for which data is available — 24 of our franchises attained or surpassed the average annual revenues of $4.8 million, or more than $987,000 in gross margin.
Bear in mind, too, that you’ll always have a clear idea of any applicable fees and expenses when you decide to become a franchise owner with Spherion Staffing.
Undeniably, there are both pros and cons when it comes to franchising. On balance, however, the clear advantages — carefully developed systems, proven business models and a huge financial upside — are compelling, and ultimately dispositive. The “pros” take the day.