Franchise business model is not new, but the fact is that many aspiring entrepreneurs are still sceptical about franchising.

You will all agree with me that the past couple of years have not been particularly an easy ride for businesses.

The downward turn in the market and loss in confidence by both consumers and lenders hit many businesses hard, with many unable to survive.

Many, of course, have survived and it is important to recognise how resilient some small businesses have been.

Yes it has been difficult, in many cases some tough decisions have been necessary, but let us also celebrate the many successes of tenacious and inspirational businesses which have continued to survive, grow and prosper.

Setting up and running a small business

Franchise business modelStarting and running a small business can not be underestimated. Many fail, even in the good times.

The hurdles and challenges can be substantial and the ability to get a business up to speed, making profit and actually supporting you is not achieved by most that try.

Often, businesses can fail at the very first hurdle, the concept. This is why franchising, as a business model has attracted the attention of many over the past two years.

Franchise business model in tough economic climate

The tough economic climate has highlighted its strengths and shown that there is a more secure way to start your own business.

Its formula of a locally owned and run enterprise, driven by a small business owner, with branding, economies of scale and support from the wider network, gives the business a far better chance of success.

However, this is only the case if it is done well, so you need to ensure you do your homework when looking into franchising.

Why franchise business model could be a better option?

A good franchise will offer you a proven business format with the initial and continuing support that you need. Your business will work under the brand established by your franchisor using the business system they have developed and proven in the marketplace.

You will pay an initial fee to set up using the brand and the proven business format. You will then pay continuing fees for on-going support that will help you operate and allow you to build the business and eventually build a capital asset that you can sell.

The on-going costs, which provide the ongoing support, is one of the major reasons behind the success of franchising. The franchisor has already gone through the pain of finding out what works and what doesn’t.

They have invested in the systems and are now willing to teach you how to replicate it. However, don’t think you can pick and choose which parts of the systems you want to pick up. It is very much all or nothing. However, if you are paying for a proven system, why wouldn’t you follow it?

So what do you benefit from franchising?

About 90 per cent of all franchisees reported profitability over a short period of time. With franchise business model, you have the opportunity to build your capital as well as your earnings on already successful platform.

It is your business and you are the owner or manager, providing you follow the system, you decide what goes and also the major banks are very supportive of good franchising.

Disadvantages of franchising?

Running any business is hard work, demanding the highest level of personal and family commitment.

You make a financial investment. No investment can be guaranteed, especially when it depends on your own efforts as well as your franchisor and the market place.

You are buying into a proven business system for its benefits, but you also take on responsibility for following it.


Like the articles on this website?
Enter your email to receive our weekly newsletter and updates!


  1. The fact that one is going to be benefiting off an already established reputation could actually make franchising a good option for aspiring entrepreneurs.

    But as you have rightly mentioned above, living up to that reputation could be a daunting task for somebody that’s new to the business.

    Great post!

  2. Hey there. Many thanks for the excellent article.
    Perfectly timed info and much like what I am trying to find a very long time.
    Lucky to uncover this content and shared on several social bookmarking platforms.

    Going to bookmark this article too for future reference as well.

    Continue the good work.

  3. Franchising has proven to be an awesome means of getting into business world.

    It offers a great platform for any serious-minded entrepreneur


Please enter your comment!
Please enter your name here