Being your own boss may sound like a dream, but it can absolutely be a reality. When considering starting your own business, you have multiple options. You could either “go it alone” and start your business from scratch, or you could join a franchise. You may be wondering, are franchises good investments? We’ve weighed the pros and cons for you.
Pros of Franchising
If you’re newly considering franchising, know that there are a number of benefits to joining an established system.
Proven Business Model
Joining a franchise takes a lot of the guesswork out of starting a business. When you partner with an existing brand, you are inheriting their knowledge and expertise of an industry. Many franchisors, like Uni K Wax, don’t even require previous experience in the industry. However, you do need to be coachable and willing to learn the details of an existing system.
Easier Access to Funding
Banks feel much more comfortable about offering loans to entrepreneurs backed by a brand. If a brand trusts that you’ll be a good fit, the bank has little reason to question your ability. To our previous point, banks also like to see a solid business plan – joining a franchise ensures you’ll have one when it comes time to secure funding.
Training and Support
Arguably one of the biggest advantages in working with a franchise is the ongoing support you’ll receive. Franchisors are there every step of the way through site selection, design, construction, training, marketing, and eventually, opening.
Support doesn’t stop once you open, either. Your franchisor is always there in case you have a question or if an issue arises. You are never starting or running your business alone.
Building a brand is hard work. When you buy into a franchise, a lot of that work has been done for you. Having a well-known name above your door certainly helps drive guests to your location and can also assist with recruitment. From day one, people already know who you are, which can’t be said for smaller independent businesses.
Expanding Your Network
Not only will you connect with those in the corporate office, but you’ll also have access to the other franchisees in your system. This is a great benefit should you have a question about your business or potentially run into a problem. In some instances, franchisees may choose to combine their marketing efforts to reach a larger group of people.
You’ll be connected to a large number of like-minded entrepreneurs who want to succeed just like you. Use that to your advantage — especially when first starting out.
Cons of Franchising
While a great option for any entrepreneur, franchising is not a perfect science. Consider the following when deciding if franchising is the right option for you.
Initial Investment Cost
Depending on the franchise system, the startup costs can be steep. You’ll also want to keep in mind that the size and location of your business can play a significant role in how much you pay upfront. However, there are some systems that are a more reasonable investment. Uni K Wax’s initial expenses range from $321,550 to $590,000, which is in line with — and in some instances less costly — than other beauty franchises.
Another thing to consider when buying into a franchise are the ongoing fees. These are typically royalty and advertising fees. Sure, they guarantee you the benefit of marketing support, but you will need to pay them for the entire “life” of your agreement with your franchisor.
Keep in mind the length of your contact with the franchisor. Agreements can range from five to 25 years. Should you decide down the road that franchising isn’t the best option for you, it can be tough to break the deal. On the other hand, once your contract is up, the franchisor can choose to not renew. You also have the power to not renew if you’re unhappy with your investment.
Lack of Creativity
If you regard yourself as a bit of a “free spirit,” understand that franchising may not be the best option for you. When you join an existing, proven system — you have to play by the rules. Should you attempt to “color outside the lines,” you can run into legal issues with your franchisor for violating your agreement.
National Brand Recognition
This one may seem familiar. Yes, while there are many perks to owning a brand-name business, there can be pitfalls. Should another franchisee or location have a bit of an issue that makes national news, it can have a negative impact on your business — even if you had no part in what happened. However, the upside here is that your franchisor will most likely have the resources needed for damage control.
Consider Franchising with Uni K Wax
So, are franchises good investments? When deciding, think about joining a well established brand. At Uni K Wax, we provide the head-to-toe support our franchisees need to get their studio off the ground. With a reasonable initial investment, Uni K Wax is an ideal beauty franchise option for an entrepreneur looking to turn their passion into profit. As the world slowly begins to return to normalcy, now is the time to partner with Uni K Wax.
In 1993, we opened our first one-of-a-kind waxing-only studio. Since then, we’ve opened another 32 locations along the East Coast, with more on the way.
Join the waxing revolution that changed an industry. To learn more about our franchise opportunities, visit our website.