Buying a franchise can give you a jumpstart to running a profitable business. Find out the pros and cons of buying an existing business and learn why it’s beneficial to invest in a franchise.
While many people have entrepreneurial vision, most lack the full range of knowledge needed to start a business from scratch. On top of a unique selling proposition, business owners need to have a solid grasp of accounting, marketing, customer service, and technology to turn a profit. This is likely the reason why 45% of businesses fail by the five-year mark.
Fortunately, there is an alternative path to business ownership. The franchise business model is designed to help people take control of their paycheck by investing in a business with an established system and a history of success. Franchise owners pay a fee to open a business with brand recognition and support. Franchises are local businesses, and their owners are thriving community members. Franchise businesses have donated more than $347 million to community efforts, the International Franchise Association reported.
To find out if a franchise is a good fit, Creative Colors International can help you explore the pros and cons of buying an existing business. CCI is a mobile restoration franchise with more than 42 years of experience in leather and vinyl repair. CCI’s repair services help save customers and commercial businesses up to 90% in replacement costs. The company’s service technicians fix rips, tears, burns, scratches, and fading in leather and vinyl products. CCI is a scalable, low-cost franchise.
Low-cost opportunities. Starting a business from scratch is a big investment, and it’s likely that new business owners will encounter unexpected fees during the process. Franchisors provide detailed startup costs in their Franchise Disclosure Document, or FDD, to eliminate guesswork and streamline your startup. There are also many low-cost franchise opportunities in a wide variety of industries. Purchasing a CCI franchise starts at $86,980, which includes a $49,500 franchise fee.
Experienced leadership. The leadership at a franchise are typically industry experts who have the knowledge to help add loyal customers. A franchisor with a solid leadership team can provide guidance and support. Jim and JoAnn Foster turned the key in the ignition of their first leather and vinyl restoration van in 1980. After adding 18 vans in the Chicago area, they formed CCI and started franchise expansion. The second generation of the Foster family sits at the helm of the company today.
Training and field support. Franchisors offer ample training and support to help new business owners achieve success. Many franchise owners do not have experience in their chosen industry prior to opening a franchise. To ensure its franchise owners are ready for their grand opening, CCI offers three weeks of hands-on training, and a field representative spends one week with new owners prior to opening. The company also provides ongoing support and product development.
Peer network. Franchise owners can take advantage of their network of peers to answer questions, provide financial guidance, and share best practices.
Complementary partners. Many businesses are seasonal or provide a single revenue stream. Investing in a franchise gives owners the opportunity to add complementary franchises to their portfolio as they gain a foothold in the industry, making it a great choice for entrepreneurs with a growth mindset. For example, owning both a painting franchise and a flooring franchise offers a one-stop-shop for home remodeling needs.
While adding complementary businesses is one of the advantages of the franchise business model, CCI has multiple revenue streams and scalable growth on its own. A CCI franchise enjoys a robust business-to-business and business-to-consumer business, providing franchise owners with a wide customer base to drive repeat customers from day one.
Marketing. Franchisors help new owners implement a marketing strategy for their business. They help provide marketing materials and provide guidance on how to grow their customer base.
Starting a franchise may have some drawbacks for people who like to think outside the box. The established processes the company has in place affords entrepreneurs less creative freedom than they may have with an independent business. Franchise owners are also required to pay annual royalty payments and marketing fees to the parent company.
Get Started With CCI
Franchising puts owning a profitable business within reach. Now that you understand the pros and cons of buying an existing business, request franchisor info to learn more about partnering with CCI.