New entrepreneurs have many important decisions to make, but one of the biggest is whether to start a business of their own creation as a sole proprietor or to purchase a franchise.
A franchise offers many advantages over a typical sole proprietorship that you may not have thought about.
A franchise business has higher likelihood of success because a proven business formula is in place, the products, services, and business operations have already been established. It also offers the independence of business ownership, but is supported by the benefits of a business network.
High Street Banks typically see franchise owners as having a lower risk of repayment default and are more likely to loan money.
The extensive training, education and support that a franchise offers are designed to bring franchisees up to speed on the most successful business methods for their business.
As you can see, doing business as a franchise gives the entrepreneur many advantages over the sole proprietorship approach to starting a business; thereby avoiding costly mistakes such as spending too much for equipment or developing an ineffective marketing campaign.