A franchise is an excellent way to become an entrepreneur without all the stress of starting a business completely on your own. Want to learn more? Keep reading to find out everything you need to know about franchises!
What is a franchise?
A franchise is where an individual with an outstanding business sells the rights to use the business’s name and to sell the product (the franchise) to others in different locations. Owning a franchise is a great option for those who want to own a business but avoid the risks of starting it from scratch. An estimated one in ten businesses in the U.S. is a franchise.
What is a franchisor?
A franchisor is the company that develops the product and sells the rights to make and/or sell the product. The primary benefit for the franchisor is that they are able to expand their brand using outsiders’ capital. The secondary benefit is that the franchisor receives royalties and other types of income from the franchise locations.
What is a franchisee?
A franchisee is a person who buys a franchise. The biggest reason to become a franchisee is that opening a franchise has a much higher success rate than starting a sole proprietorship.
How much does a franchise cost?
A franchise can cost anywhere from $10,000 to $5 million; however, most cost between $100,000 to $300,000. Franchise fees are typically made up of an initial fee, royalties, marketing
It goes without saying that franchises are a significant investment, so it is important to choose wisely when searching for a franchisor. Check out our article on what to look for in a franchisor for more help.
What are initial fees?
An initial franchise fee is a payment that the franchisee pays to the franchisor for the rights to use the company’s brand name, sell its products, have access to the company’s trademarks and licenses, and receive insight into its intellectual property.
What are royalties?
Royalties are ongoing fees a franchisee pays to the franchisor. They are typically charged as a percentage of total revenue instead of a fixed cost. They are usually paid on a monthly basis. Royalties are used to fund ongoing support services, the constant development of product and supply channels, marketing tools, training programs, and general improvements to the company.
What are the benefits of owning a franchise?
As mentioned before, owning a franchise is a much safer bet than starting a business from scratch. About 50% of small businesses fail within the first 5 years. Franchises essentially eliminate this risk since franchisees receive help and training from the franchisor. In addition to this, franchises are established brands that generally have a strong reputation associated with them, which leads to more trust from potential customers. That’s why franchises have a success rate of 92% in the first 2 years of ownership.
What sets PorchPros apart?
PorchPros is a unique franchise in many ways. First off, we have a low initial fee of $35,000. Secondly, we are a home improvement franchise that requires no previous home improvement or construction experience. Our products are simple, and our installation process is fast and easy. Most of our projects can be completed within 1-3 days!
The home improvement industry has been booming the past few years and is estimated to grow by 4.3% every year in the United States from 2021 to 2027. Creating outdoor living spaces is a large part of this robust industry. However, many of these services are only possible in the warmer months, but our porch enclosure systems can easily be built any time of year. This ensures that you will have a constant stream of revenue year-round as a PorchPros franchisee.
PorchPros also gives you all the help you need to succeed; we offer thorough training, marketing materials, and additional support as needed!
Overall, franchises are a great way to start your own business and PorchPros makes for a worthwhile opportunity to join a booming industry. Fill out our contact form so we can connect with you and see if we would be a good fit!