Thriving through Covid: Why the Franchise Business Model Works

Nov 3, 2020 | Articles, General

Jania Bailey is the CEO of FranNet, North America’s most respected leader in matching individuals with franchise ownership opportunities. Prior to FranNet, Bailey spent multiple years in banking, rising from a secretary to become the youngest regional vice-president. She also the author of “Thriving: The Journey to Success in the Business World”. Since joining FranNet in 2006, she’s changed the corporate structure to mirror the franchising business model itself, and, under her leadership, the company has grown to include more than 100 consultants across the U.S., Canada, and Germany.

It’s easy to see why Bailey has such a passion for franchising. She has a go-to lecture she loves to present, entitled, “Why the Franchise Business Model Works”. Included within is everything you’d ever like to know about franchising your way to success. For all of those who yearn to become their own boss, here are the key points you need to know…

The Franchisor-Franchisee Role

When you decide to buy, own and operate a franchise, you’ll be in business for yourself—not by yourself. Franchising is relationship-based arrangement between a franchisor (brand) and franchisee (owner). Owners get a license to use the brand name, trademarks, products and proven business systems. Brands provide these assets in exchange for a franchise fee and ongoing royalty payments. The brand maintains operational and organizational integrity and the owner serves the franchise customers in accordance with the brand’s standards.

Why it Works So Well

When you buy a franchise, you get a business model with a proven, systematic approach to starting—and staying—in business. If you follow the procedural roadmap, it’s an advantageous way to earn predictable success—especially compared to starting a business from scratch. Franchisors are duty-bound to provide training, support, systems, and a culture of teamwork designed to increase the probability of collective success for all franchisees in their system. When you win, they win. And vice-versa.

Purchasing Process

There are several measured steps involved in the purchase of a franchise, commonly called the “Investigative Process”. And FranNet does it better than anyone. First and foremost—FranNet does not sell franchises. We educate and assess prospects, offering choices so that clients can make an informed decision. Our job is to help you navigate the investigative process, a personal quest to find the perfect franchise match. All of FranNet’s services are 100% free to clients. No cost, no obligation.

Franchising Facts & Footprint

Globally, dozens of franchise categories make up over 3,800 different brands, covering 90 industries and 900,000 operating units. And while there is no automatic correlation between a franchise’s purchase price and potential return, almost half are priced below a $250k investment level. Prior to COVID-19, the U.S. had over 730k franchised establishments, employing 7.6 million American workers. Since the pandemic, many franchisors have responded with deferred royalties, modified outreach tactics, increased communications and even offered assistance with lease negotiation. Industry support from the International Franchise Association (IFA) has included PPP loan guidance, relief program comparisons, CARES Act clarifications and the development of a “Franchise Reopening Blueprint”. 

Consulting is the heart of FranNet’s coast-to-coast operations. No matter where you live, you can connect with a franchise specialist who both lives and works in your area. The pandemic has disrupted the intersection of business and commerce, but the challenges we’re facing amidst this new normal can also be viewed as an opportunistic time to take entrepreneurial action. If you’ve ever considered owning your own business and becoming your own boss, let us introduce you to the benefits of taking the franchising route to get there.

 

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“Thriving through Covid” is FranNet’s new series of inspirational articles featuring positive news, business owner profiles, success stories, and educational updates—all of which demonstrate the resilience of the franchising industry. We want you to know that even during this uncertain time, franchising can offer you an alternative path forward—and a new opportunity to achieve success through business ownership. 

 

Check back with FranNet twice weekly for new articles and let us know when you’d like to begin an entrepreneurial journey of your own!