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What Do I Get When I Buy a Franchise?

What You Get When You Buy a Franchise

While all franchise systems are different, there are many common benefits when you become a franchise owner.

Operational Structure

When you buy a franchise, you’re investing in an operational structure developed by the franchisor. This structure includes already established business practices which allows you to forego some of the early phases of business development that you would otherwise experience when starting a business from scratch, such as developing a business plan, conducting market research, and brand-building activities.

Franchise owners can open their business with an established and market-tested product or service that consumers already know and trust, while following specific guidelines on how to operate the business. Franchisees can then spend more time focusing on day-to-day operations as opposed to other start-up functions.

Brand Recognition

Brand recognition is one of the most significant benefits of franchise ownership. Customers are more likely to do business with a business when the brand name is highly recognizable, as it brings with it a certain amount of trustworthiness. They know they’ll receive consistent quality and service, no matter which franchise location they choose to visit. A powerful brand brings with it the opportunity to build upon its existing customer base instead of creating an entirely new audience.

Brand recognition not only attracts customers to a franchise location, but it also attracts new franchisees to the system. The loyal customer base a brand name generates carries with it, a positive influence on all franchise locations, which helps in turn, increase the value of the business, lessens the risk of opening a business, and encourages more entrepreneurs to open their own franchise locations.

Brand Usage

Under the franchise agreement, franchisees can use the franchisor’s brand name, trademarks, artwork, marketing materials, and other intellectual property owned by the franchisor. With these licensing rights also comes a responsibility to uphold the quality of the brand name and contribute to its strength. Franchisees gain the power to influence and maintain the brand reputation, as a good customer experience at one location increases brand recognition and loyalty for all locations across the entire brand.

Financial Opportunity

One of the main reasons why people become business owners is the potential financial freedom it can allow. Buying into a franchise system makes it easier to estimate costs and predict profitability due to the proven structure of the business. Because of other franchise locations’ successes, challenges, and learning experiences, the whole structure can benefit and adapt, helping franchisees along the way improve financially. While you’ll be signing an agreement to invest in the brand, which includes financial obligations including franchise fees and applicable federal and state income taxes, you’ll also be creating financial opportunity for yourself and your business.

Work for Yourself

When you buy a franchise, you gain the ability to be your own boss, have a flexible schedule, and possibly even change your life. Opening a business requires a lot of hard work and dedication, especially early in the process of opening your doors and building your team, but it also allows you to have more flexibility in your schedule. Since you’re the boss, you can determine where resources are needed and when you may have more room to step away and let your team handle operations, but you’re still ultimately responsible for the growth of the business.

Franchise owners can hire their own team and train staff to manage and run the day-to-day operations to give the owner more freedom to work another job or simply enjoy time off to spend with family, pursue a hobby, or however else they decide to spend their time.

Training and Support

Buying a franchise also generally includes training and support, but these may vary across brands and franchise systems. At The UPS Store, support and guidance are inherently built into the process of franchise ownership, and while each store is independently owned and operated, you’re never in business alone.

When you decide to open a The UPS Store franchise, you’ll receive assistance with finding and securing a retail location, planning and building out your store, working with local contractors to procure permits and bids, and ordering and installing equipment and computers.

Every new franchisee also completes a comprehensive training program consisting of over 200 hours of web-based training, in-store experience training, and University Business course training to prepare the franchise owner to open their doors. This in-depth training provides a strong foundation of store operations, technical systems, print services, and business acumen including marketing, operations, sales, and financial management.

The available training and support allows franchisees the freedom to run their own operations but still have a team to assist when needs or challenges arise.

Buying a franchise is a life-changing decision and one that shouldn’t be made lightly. Even with an established and proven operational structure to follow, it’s still important to work hard, manage time and investment wisely, and providing exceptional customer service.

Learn more about franchising opportunities with The UPS Store by contacting our franchise development team. Discuss the possibility of owning your own retail location and becoming a valuable part of The UPS Store network.