If you’ve always thought about becoming a business owner, then there’s a chance you’ve started looking into what it takes to start your own business. However, you may have also found it may be in your best interest to buy into a franchise like Samurai Sam’s® instead of starting a business from scratch. There’s a lot of information out there that you may have run across emphasizing that the rate of franchise success is much higher than that of a small business – but is it?
THE ODDS OF SUCCESS
A lot of people mistakenly think that investing in a franchise is a sure thing. Yes, it helps that you’re buying into an established brand with a proven business model. But that doesn’t mean there’s no risk of failure. There unfortunately isn’t a set success rate either – a lot factors into whether a franchise succeeds or not.
The main difference between a small business and a franchise is the structure and support that a franchisor provides, whereas a small business owner has to rely on trial and error. When investing in a franchise, pay attention to their growth rate. Find out if the franchisors are financially stable and find out if they have full-fledged training and support systems. A franchise is usually much more likely to succeed if it meets these standards.
It’s also worth noting that lenders are more likely to provide financing at good terms to borrowers looking to invest in franchises, whereas they often turn down small business investors. This is because lenders generally consider franchises to be a safer bet.
There’s no exact success rate for franchises, but a solid brand, comprehensive support and a franchisee who is a good fit are more often likely to succeed. For information about our franchises, contact Samurai Sam’s today.
©2017 Kahala Franchising, L.L.C. All rights reserved. All other trademarks referenced are property of their respective owners. The information provided herein is for informational purposes only and is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise; nor is it directed to the residents of any particular jurisdiction within the U.S. or elsewhere. The following states currently regulate the offer and sale of franchises: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, and WI. If you are a resident of one of these states, or of a jurisdiction that has similar requirements, we will not offer you a franchise until we have completed the applicable registration or obtained the exemption from registration, and completed the applicable disclosure requirements. Regardless of what state you reside in, an offering can only be made by a franchise disclosure document.