The Benefits of Franchising
Your Business Concept
Franchising represents one of several popular strategies for growing a company. Here are just a few of the reasons why a company might franchise:
Lower Capital Investment
Franchising requires less capital than other growth strategies: Franchising permits your company to grow with capital invested by the individual franchise owners.
Rapid Expansion
In todays marketplace, the window of opportunity for a new or unique business concept closes quickly. A well-planned franchise development program permits multiple units to be opened simultaneously, gaining the competitive edge on any would-be competitors. Charter creates the system necessary to make this happen.
Market Dominance
Multiple unit development increases the companys advantage in the marketplace. Advertising costs can be shared by multiple franchise units.
Better Managers
Franchising better assures that Qualified Managers are operating the additional units: Franchisees are motivated by their ownership of the business and the capital they have invested. A business demands a great deal of time, effort and sacrifice. With capital at risk, franchisees are usually much more motivated than employees.
Profitability
Franchise units have a 90% success rate. They tend to be better run and more profitable because independent owner-operators with entrepreneurial passion and commitment are working with your proven formula for business success.
Buying Power
Charter establishes purchasing power for the franchise. Purchasing products and services for the entire franchise system allows us to negotiate volume discounts from vendors and suppliers. This provides higher operating margins and profits for you and your franchisees.
Greater Name Recognition
As additional units are opened, name recognition increases. This increases the value of the business to you and your company’s franchisees alike.
Shared Advertising and Marketing Expenses
Franchisees contribute a percentage of their sales to an advertising fund created and administered by your company. This enables you to coordinate larger advertising campaigns that further increase name recognition and brand value among consumers.
New Revenue Streams
Your company may earn income from the franchise system from many of the following revenue generating programs:
- Franchise license fees
- Franchise and advertising royalties
- Services provided to the franchisees
- Sales of products and supplies to franchisees
- Rebates from vendors and suppliers
- Sales of logo and signature products
Let our Franchise Consultants Help Your Business Grow
At Charter Franchise Group, our franchise consultants are the industry leaders in Texas, Louisiana, New Mexico, Arizona, and the Sunbelt region in cities like Houston, Austin, Dallas, San Antonio, Phoenix and beyond.
Charter has experience in such diverse segments as food and restaurant service franchises, retail franchises, and service franchises. Our dedicated team can start and launch a franchise concept that will help you attain your business goals.
