Investing in a Franchise Business – Understanding Your Options | College Hunks Hauling Junk & Moving
Many people who dream of owning their own company consider whether investing in a franchise business is better than starting a business from scratch. Ultimately, many of these aspiring business owners choose to invest in a franchise business because it removes much of the risk involved in starting a business from the ground up and offers a game plan for several types of ownership geared for success.
Owning a franchise involves purchasing the right to use a franchisor’s business concept, model, procedures, intellectual property, and brand, as well as the right to sell their branded products and services. In addition to paying the franchise purchase fees, the franchisee must comply with certain obligations that should be listed in the Franchise Agreement.
Franchise Ownership Options
- Active Owner – For many, part of the fulfillment that comes with owning your own business is being involved in its day to day operations. Franchise ownership provides a road map for success that takes the mystery out of how to best run the business. For business owners who go it alone, figuring out how to succeed may take more time and money – or not happen at all.
- Active Owner of Multiple Franchises – As owners of franchises succeed, they have room to grow within a network by owning more than one franchise location. They also have the peace of mind that comes with knowing they are already working with a successful model that appeals customers in the new markets they are entering. It takes a lot more work and time to duplicate a “start from scratch” model in a new location.
- Passive Owner of One or More Franchises – Passive ownership in franchises works for those who prefer not to be involved in the day-to-day decision making and operation of a business they own. It’s also proved to be an effective strategy for those who are hoping to transition from their career into the more rewarding role of business ownership. Passive franchise business owners have the certainty of knowing how their franchise business works down to the smallest details – even if they aren’t operating it themselves, a benefit that many who invest in a business starting from scratch don’t have.
- Buy an Existing Franchise or Start Your Own Location? –Most franchisors offer the option to purchase an already existing location in addition to the option of starting your franchise in a new location. Depending on what works best for you, both of these choices are less difficult to launch than starting a business from scratch. Purchasing an existing franchise gives you the benefit of acquiring an existing customer base, especially important if the previous owner had a great reputation in the local community.
Franchise Ownership Benefits
No matter what type of franchise ownership you choose, you receive numerous built-in benefits that make success easier to achieve than starting a business from scratch. Consider these benefits of owning a franchise.
- You work with a proven, successful business model
When you buy a franchise, you are buying into a network and system that is already succeeding using a business model that you can easily implement. It should also be recession and pandemic resilient and insulated from automation. Having these attributes in a business model largely mitigates the risk of business failure that is so prevalent in non-franchise business startups.
- Obtaining financing is easier
Lenders prefer to provide financing for franchises as opposed to other business startups because they have this proven track record of success.
- You have an exclusive/protected territory
Your franchise purchase comes with the assurance that you will be the only franchise of the brand operating within a defined geographical region.
- You receive training and ongoing support
Because franchisors are highly invested in helping you succeed, they offer significant training in how to run your franchise business both at their headquarters and at your location. They help you launch your franchise business and continue to support you to make sure you are running it for optimum return.
- Business launch time is reduced
The time it takes to launch your franchise is significantly less than it would take you to start a business from scratch because all of the systems, procedures, equipment and other materials necessary for you to open your franchise business right are already in place for you.
- You receive brand awareness and other marketing support
When you buy into an established franchise network, chances are good that it will have significant brand recognition among customers and potential customers. This would take years to build for a business when starting from scratch. Franchisors also provide ongoing local marketing support from designated advertising or brand funds. The level of funding should be specified in your Franchise Agreement, and you should also have access to suggested marketing activities outlines, brand graphics, templates, and other marketing materials to use to promote your franchise business.
College HUNKS Hauling Junk & Moving is a Top US Franchisor
College HUNKS Hauling Junk & Moving has become the franchise of choice for many entrepreneurs looking for the best franchise to own. As a franchisor, College HUNKS scores high in all of the evaluation benchmarks important to potential franchisees and is the only full-service residential and commercial company that offers moving, junk removal, donation pickups, and labor services in the United States as well as Canada. Listed within the top 3% of all franchise opportunities in the US, College HUNKS is rapidly building its national presence in the stress-free junk removal and moving space.
With more than 130 franchise locations operating nationwide in a network that reached $100 million in revenue in 2019, College HUNKS added 25 new franchisees and five corporate stores last year – more than in 2017 and 2018 combined. In 2020 – even during the COVID-19 pandemic – College HUNKS continues to build its brand and bring more franchisees into its network. Opportunities to franchise with College HUNKS Hauling Junk & Moving are now available in more than 400 territories in the US and Canada, including franchises in the best areas of Boston, Las Vegas, New Orleans, Dallas, Memphis, Salt Lake City, Los Angeles, San Francisco, and San Diego. Contact College HUNKS Hauling Junk & Moving to learn more about how to be part of this successful company with an award-winning business plan.