Have you checked out the wide range of Pittsburgh franchising opportunities?
Pittsburgh’s franchise market is one of the fastest growing in the country.
Pittsburgh offers one the best chances at getting into this popular market and there has never been such high demand from potential business owners seeking the stability and prosperity from a franchise!
Pittsburgh Franchising – A long History of Success
Franchising is a marketing concept that has been around for multiple centuries. Dating all the way back to the 1800’s, this business model has been in existence in some form or fashion, although there is room for debate on who started the first franchising business.
Regardless of who was recognized as the first successful franchising business, the overall concept remains a strong and popular business model. In order for any business concept to survive for multiple centuries, it must have a rock solid foundation of principles and prove to be beneficial for all those who participate in this concept of business partnership.
What Is a Franchise?
A franchise is defined as a method of distributing product or services with a franchisor, who establishes a brand, trademark and business systems, and a franchisee, who pays fees for the right to do business under the franchisor’s name and established business model.
What Are The Benefits Of Franchising?
The franchising business model can reap great rewards for all participants in this agreement. Here is a list of just a few of the benefits of franchising.
- Business Assistance – This is one of the most important benefits for the franchisee. From the beginning, a franchisee is able to take advantage of an established business framework and brand name recognition. This can include equipment, supplies, training, advisory services, and an ongoing advertising campaign. This would be an ideal head start for any entrepreneur looking to start a business from scratch.
- Improved Success Rate – On average, franchises have a greater success rate compared to independent businesses. With an established business model already in place, the franchisee can avoid the trials and tribulations that many solo business owners may experience when attempting to get their business off the ground. Riding the coattails of a proven business concept allows for an easier transition when starting a franchising opportunity and a greater chance of running a successful and profitable operation.
- Built In Customer Base – One of the most difficult parts of starting any business is attracting and growing your own network of customers. This obstacle can be avoided by investing in a franchise. The roots of your customer base would have already been established through brand recognition and any previous advertising campaigns.
- Be Your Own Boss – This benefit speaks for itself. Setting your own hours, making your own decisions, having a greater sense of satisfaction and fulfillment, job security, and gaining business operation experience, are just some of the wonderful benefits of being your own boss.
- Monetary Incentive – A successful franchising business can lead to building your overall financial wealth. This is the ultimate goal of most individuals when it comes to investing in a franchising opportunity.
This is but a mere sampling of the benefits that can be experienced when investing in a franchising opportunity. Consulting with a certified franchise consultant can shed more light on the additional benefits that can come about from investing in a franchising business.
Steps To Open a Franchise
The world of franchising can be intimidating if you don’t put in the necessary work to learn about the business concept. Before deciding to invest in a franchising opportunity, it’s important to know the steps involved in the process.
- Self Evaluation – There are some questions you should ask yourself before proceeding with a franchising opportunity. What appeals to you about investing in a franchise business? Are you ready to work the necessary hours to successfully run a franchising business? Can you commit to following a predetermined business model? Can you afford the fees associated with the franchising business? Are you ready, willing, and able to learn all the rules and regulations associated with investing in a franchise?
- Research – This is absolutely necessary in order to gain a solid knowledge on how franchises operate as well as the risks and rewards that can come about from this partnership.
- Talk With a Franchising Consultant – No matter how much knowledge you gain from researching, you will still have questions. This the time you really need to connect with a franchising consultant. A consultant can help guide you step by step through the process of franchising and assist with understanding some of the more complex federal and state laws, which govern the franchising business concept. A consultant’s input can also help provide assurance that your decision to invest in a franchising opportunity is the right one for you.
- Secure Funding – Depending on the franchising business, the initial investment fees can be substantial. It’s important to understand the fees associated with this business venture and confirm if you have enough funding to proceed with this endeavor.
- Meet With a Franchisor – The culmination of your research typically is an in person visit with a franchisor is known most commonly as a ‘Discovery Day’ or sometimes “Meet the Team Day.” This is your chance to interact face to face with your potential franchise business partner and learn more details about the business.
- Understanding The Franchise Disclosure Document (FDD) – This document is the main centerpiece when it comes to understanding the franchising agreement. This document is formatted by the FTC and discloses any risks, benefits or limits to the franchising venture. This includes fees, financial performance expectations and other pertinent details.
How Much Do Franchises Cost?
The cost of investing in a franchise can vary greatly depending on the size and complexity of the franchising business. Franchising costs can range anywhere between $50,000 to as much as $1 million.
These costs usually cover the use of the franchise brand, fees associated with using the product or service model, equipment, training, and advisory services. In addition, there are ongoing royalty fees from the operation’s sales.
Franchise Financing Options
Having the capital available to invest in a franchising opportunity can be difficult to come by when you consider the significant fees that can be associated with this business partnership. If you don’t have enough liquid assets to move forward with investing in a franchising business, there are other options to pursue.
- Work with your bank or another financial institution to obtain a loan.
- Consult with the franchisor who may have agreements with special lenders, which can assist with getting your loan approved, or potentially shortening the loan process. Also, the franchisor may be able to reduce some of your up front costs or defer fees until a later time.
- You can potentially tap into your home equity if you have a substantial amount available to use for your franchising investment.
- Apply for an SBA loan, which is a long term, small business loan partially guaranteed by the government.
- You can consult with family or friends who may be generous enough to offer money as a gift or agree to sign a written contract with specific loan terms.
Find The Perfect Franchise To Buy
Finding a good match when it comes to choosing a franchise can be overwhelming with so many industries and businesses that are open to franchising opportunities. Research becomes a key factor in helping you come to an informative decision. The following questions can help assist in narrowing down which franchising business to pursue.
- What is your ultimate goal in pursuing this franchising opportunity?
- Do you have enough money to invest in this opportunity?
- Have you evaluated the success rate and growth potential for the franchising opportunity? Is it in line with your expectations?
- How is the competition? Will it be a challenge competing against other business or is the competition minimal?
- Does the franchise have a proven track record for profitability?
- Have you thoroughly reviewed the Franchise Disclosure Document? This will outline all of the initial and ongoing fees associated with the franchising opportunity.
Are You Ready To Own a Pittsburgh Franchise?
Pursuing a franchising opportunity can be a monumental decision for many. A huge part of choosing the ideal franchising opportunity is determining where to invest from a geographical standpoint. With a population of over 300,000, a major hub for health care services, education and technology, Pittsburgh has proven itself to be a city of opportunity when it comes to investing in a franchise. Speak with John from ‘That Franchise Guy’, to set up a free consultation to discuss the potential of owning a franchise in the city of Pittsburgh, which is ripe with opportunity.