The benefits of a franchise over starting a business yourself are numerous and even more so in another country. Franchising's primary benefit is risk minimalization. Starting a new business is risky. Most studies show that over 90 percent fail within three years. The primary reason that the failure rate is so high is because the owners have to go through the learning curve of operating that specific type business. Franchising reduces that curve substantially.
Franchisors have the knowledge, experience and have gone through the pain of starting a business with all its legal requirements and red tape, so you don´t have to. OPI are selling a defined, proven business format or method of operation, offering a product or service that has sold successfully. An independent business is based on both an untried idea and operation.
The experience of the OPI management team increases the potential for success. This experience is often conveyed through formal instruction and on-the-job training.
Franchisees can buy lower-cost goods and supplies through the franchisor, resulting from the group purchasing power of all the franchises.
Franchising provides a uniform system of operation, so that consumers receive uniform quality, efficiently and cost-effectively. A uniform system brings with it the advantages of mass purchasing power, brand identification, and customer loyalty, capitalizing on the proven format.
OPI can provide management assistance, including accounting procedures, personnel and facility management. An individual with experience in these areas may not be familiar with how to apply them in a new business. OPI helps a franchisee overcome this lack of experience.
OPI help franchisees to develop a business plan. Many elements of the plan are standard operating procedures established by the franchisor. The most difficult part of a new business is its start-up, since even experienced managers lack the knowledge to set up a new business.
One of the biggest benefits to franchising is marketing. OPI can prepare for the development of professional advertising campaigns. Regional or national marketing done by the franchisor benefits all franchisees. In addition, the franchisor can provide advice about how to develop effective marketing programs for a local area through a cooperative marketing fund, to which the franchisees contribute.
