Five reasons startups are choosing franchise opportunities


When you mention startups, most people think unique, fresh ideas, not an established franchise. But the terms “startup” and “franchise” make a great combination. Restaurants, salons and retail are the types of businesses most people associate with franchise opportunities. But there are fresh new franchise opportunities arising every day.
Many of these new franchise opportunities are born through the creative entrepreneurship of small startups. The home service industries are gaining lots of momentum in the franchise arena. Franchises that offer a higher level of convenience, especially to homeowners and the aging boomer generation, are especially popular. Home care, cleaning services, junk removal and mosquito control are some of the kinds of businesses you’ll find at the top of the list in the Franchise Business Review.

Here are five reasons franchises are gaining popularity among the startup community.

Quick Startup

For many business startups, bootstrapping their business during the first months or years is a daunting prospect filled with uncertainty. Investing in a franchise comes with benefits that enable you to hit the ground running. Supplier connections with competitive pricing are generally already established for retail and hospitality franchises. Many service-style franchises don’t even require real estate for their startup.

Guidance and Support

Restaurants and salons both have long lists of health regulations they must follow to gain and maintain licensure with their municipality and state. Every business has a certain amount of this type of red tape to deal with, though many home-related services have much shorter lists. When your startup is a franchise, you have the benefit of the experience of the franchise owners and other franchisees in your state to help you navigate these hurdles. Avoiding costly errors in this process can save you frustration, delays and expense.

Immediate Name Recognition

The hospitality and personal services industries are highly competitive. High advertising budgets are a necessity when you’re competing with dozens of other restaurants, hotels or massage salons in the same small area. Choosing a franchise makes it easier for your brand to stand out above your local competition. There is an immediate trust level that comes with name recognition.

Less Risk

When an entrepreneur buys into a franchise, they know the business model has already achieved success. There is less guesswork and no trial and error involved. Training is provided, and processes are mapped out for you. Your marketing is part of a larger organization with a wider bandwidth than you could accomplish on your own. Word of mouth and customer referrals are two big drivers of new business. Even when your business is brand new to an area, the reputation of the franchise brand can create the initial word of mouth promotion that is so vital to success.


Franchises are easily scalable in multiple ways. You can scale your business geographically by starting in one area and gradually expanding to multiple locations. Or, if you have a home service franchise, you could expand its service area or expand the types of services offered. For instance, a franchise might begin by offering residential services and expand to add commercial services. If you’re a restaurant franchise, you might start with eat-in service only and expand to offer catering as well.
A franchise might not be the best pick for every startup, but these five reasons give a clear picture of why they are gaining popularity. I’d love to hear your reasons for selecting the franchise opportunity you chose.

Source: Forbes –

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