These days an increasing number of women are taking the entrepreneurial route and entering the business world, and specifically the franchise sector. We’re seeing more franchisees who are not only independent in business, but in life too.
Although business is still male-dominated, women franchisees are making huge steps, with statistics showing that women are entering the franchise industry at a greater rate than ever before. Women are not only making an impact on existing industries and franchising their own businesses, there are many women who leading the way for other strong and ambitious women to do the same.
How franchisees are booming
The British Franchise Association shows the franchisees sector’s turnover has grown by 10.2% between 2015 and 2016. And although the percentage of female franchisees dropped from 28% in 2011 to 23% in 2016, it’s not believed to be accurate, as many women are now running franchises with their spouse or partner. This is a trend that has been increasing over the years.
In the US, the amount of women entering the franchising sector has increased 45 percent in the five years to 2014. And according to the International Franchising Association, females own 21% of all franchise businesses in the US, and a further 43% co-owned and operated by men and women together.
There are a lot of reasons franchises appeal to women
- Franchising has particular appeal to women who want to be part of something bigger, because joining a franchise is like coming into a family
- Women franchisees generally have great communication and networking skills which are valuable in dealing with franchisors, vendors and customers
- You’re in business for yourself, but not by yourself. Franchising offers the opportunity to start a business with the operational capability and proven systems already taken care of
- Franchise business can offer the flexibility and more control over your financial security with a level of safety that going into business by yourself doesn’t provide
- Franchising allows collaboration and provide a community environment while working independently
- Allows women franchisees to spend more time with their families, provides more rewarding careers which are often driving factors
Franchising gives women a way to invest in a business that they’re passionate about, with the systems and safeguards available to maximise their chance of a successful positive outcome.
If you decide to explore franchising as a valid way to gain your financial independence and success there are some key things to consider and make sure you research in detail things like:
- Know your criteria: be sure of your ultimate goals and whether you have criteria that could be a deal breakers. If you don’t love what you do, it’s harder to achieve at the level you want.
- The financial model: the upfront costs, ongoing fees and royalties. Are they percentage based on expected sales or a fixed fee? Do you need to borrow and do you have capacity for that? As well as being able to afford to buy in, do you have the means to live comfortably while getting started?
- Sales and profitability: Is it an established site that is still growing, or is it mature and declining. If it is a new greenfield business starting from scratch, what are the projections, and how quickly will it grow? You need to validate projections and be comfortable the business whether already established or not, will provide the financial means you’re after. Remember you bank profit not sales, so do your numbers.
- Growth Capacity: Consider the franchisees expansion opportunity. Is there a path to grow, whether it’s by buying multiple units or building larger teams and employing people, or not?
10 proven advantages of franchisees investment:
1 – Expansion
In the assessment of the franchisees consultant, expansion through franchises is done more quickly, as the models are ready and the franchisors are always studying new strategic points to expand their presence in different territories, which makes it easier when deciding to expand.
2 – Brand
Having a well-known brand means having advertising or marketing, communication and other departments to help franchisees promote the business, which naturally ends up becoming known to the public also through its presence in cities with gains in scale.
3 – Contract
Both franchisor and franchisees are legally insured against possible revisions to the agreement. This gives more security for the investor to work and for the franchise to continue to develop its business improvement processes.
4 – Management
Before opening the doors of your franchise, you will undergo franchisees training in the management of your unit. The franchisor will teach you everything necessary to control the business. In addition, even after opening, the brand will continue to monitor its results and recommend actions if necessary.
5 – Suppliers
In addition to the advantage when negotiating, franchises research a lot about who supplies the products to their units. Therefore, the suppliers that work in franchising are always approved, which guarantees higher quality in the products and services offered by the franchises to the franchisees.
6 – Creativity
Launching new products is not a difficulty in franchising, as the franchising networks carry out market research before the launch of the service or product proposed, thus ensuring that acceptance with the public takes place. There is also a constant search for innovation and creation of new solutions on the part of franchise networks.
7 – Standardization
It’s much simpler to maintain a certain pattern that works than to create one entirely from scratch and then test it out on the market, isn’t it? When investing in a franchise, franchisees will get to know the brand’s units to get to know the operation at the cutting edge and understand how the standard adopted by the brand is and which will also be applied to your franchise.
8 – Negotiation
The franchise will negotiate with suppliers for lower prices, as the purchase is aimed at all units in the chain. With that, there is a gain in negotiating power and greater bargaining when making money.
9 – Support
When opening a franchise, you will be able to count on all the franchisees support you need in an entrepreneurial life, such as guidance on topics such as accounting, legal, tax, etc. For the consultant, this prevents franchisees from having problems due to lack of knowledge, in addition to freeing them from bureaucratic concerns, leaving more time to seek the best result for their business.
10 – Collective
The growth of the brand as a whole is its growth as well. If the franchise grows, franchisees grow with it. Franchising is a very collaborative market in which the system works for the organic growth of the entire chain involved.
