A franchise is an excellent business option for people who want to become entrepreneurs, but don’t want to start from scratch literally. You get to run your own enterprise while enjoying the benefits of selling products or services from an established brand, and can also choose among several industries to franchise from, one of which is footwear.
Here are the advantages of a shoe franchise:
1. A Known Brand
Even if you say that the shoe brand you’re franchising is not as popular as large conglomerates such as Nike and Adidas, the fact that the franchisor allows franchisees to take part in the business means that the former is confident in the product, and have established a loyal following. Plus, the owner has already taken the leg workout of developing and ironing out the mistakes in the business system.
Three factors that can help you decide if a brand’s identity will stick with your customers:
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- Color – Visuals are crucial in making a favorable and lasting impression with consumers. Most people associate hues and shades with emotions so you can market your products better if the franchise you choose has positive colors.
- Personality – The brand must target a specific group of people. Most shoe companies focus on athletes and sports lovers. Look for ways that potential franchises engage with other demographics.
- Quality – Your products should consistently have remarkable quality from the first shoe produced by the manufacturer up until the millionth pair. You want to be associated with a brand that’s reliable.
2. Independence and Support
A franchise business is an advantageous arrangement for the franchisee because it provides you with the independence of a small business while getting the support of the main company. For operational, however, you don’t have to fully rely on the franchisor. You can always look for resources online. For instance, Franchise Know How offers you valuable insight into the industry and gives you advice on how to improve your franchise.
3. No Business Experience Required
Since you’ll be getting strong support from the franchisor, people who’ve never had business experience can still get their own shoe franchise. They’ll provide you with training to equip you with the necessary skills and knowledge on how to run your branch.
Plus, they don’t only stop with training you prior to starting your store. They also offer ongoing training opportunities to help you achieve your business goals. Some franchisors help with the site selection and development process as well.
4. Supplies and Equipment Are Provided
Aside from regular training opportunities, you also don’t need to worry about finding suppliers and buying the equipment necessary for business operations since these are included in the package. Standard equipment consists of a point-of-sale (POS) system, scanners, and inventory trackers. Moreover, you can take advantage of bulk discounts since the franchisor will be the one to order from the supplier.
5. Easier Financing Approval
It may be easier to get approval on your financing applications for your shoe franchise because the business model is already established. The lender will be more assured in approving your loan application since it’s likely that your company can take off and gain profits because customers know the brand.
These are the financing options you can consider:
- Franchisor Financing – Some franchisors offer debt financing for some aspects of the business. Typically, they don’t shoulder the entire cost of the franchise.
- Bank Loans – Loan financing provides you with a lump sum which you can use as capital for your franchise. You will need to repay it every month with interest.
- Small Business Administration (SBA) Loans – The government agency helps small business owners by guaranteeing part of the loan amount that the latter gets from banks; thus, reducing the risks to lenders and providing lower interest rates as well as extended repayment periods.
- Alternative Lenders – These lenders are less strict about the requirements they need for loan applicants. They also have shorter turnarounds than traditional options.
- Crowdfunding – This option rose to popularity in recent years, especially with startups. The process involves customers putting money first to fund the business and incentivizes their investment by giving them exclusive freebies along with the product.
6. Marketing and Advertising Support
Franchisees are often required to pay a mandatory advertising fund, also known as a brand fund, used for promoting the brand nationwide. This cost will help you reach your target audience aside from the digital marketing strategies that you employ. One significant advantage of this fund is to provide consistency with the campaigns.
Conclusion
As with any business, there are also some disadvantages to purchasing a shoe franchise like the restrictions placed upon you by the franchisor. However, these limitations are set by the owners to ensure the quality of the brand and to boost its reputation, therefore it is still beneficial to franchisees.