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9 Fantastic Advantages of Franchising

Estimated Reading Time: 9 minutes 45 seconds.

The many advantages of franchising make it a very attractive option for potential entrepreneurs. With drive and ambition you can accomplish your dreams and eliminate or reduce many of the potential issues of starting a business independently.

If you’re still unsure of the route you want to take, here are 9 fantastic advantages of franchising that could sway you.

1.    Shared Risk & Benefits

Starting a business always involves risk, but one of the major advantages of owning a franchise is that you’re buying into a tested system with existing successful members. They’ve already proven you can profit from the business model and tapping into a good network means it’s less likely you’ll fail.

According to the Canadian Franchise Association’s 2017 Advocacy Survey data, 62 percent of franchises have operated in Canada for at least 11 years. They also have a record of success, with half of all franchisees sticking with the same brand for more than 10 years.

Since the franchisor includes owners operating in various markets, you also know the business model, products, and services work effectively. Each member has the backing of the larger corporation and all business owners work under the common brand and share the benefits. When it comes to franchising, everyone is literally invested in success.

2.    Brand Power & Loyalty

Starting a business from scratch involves developing and testing products and services and building brand credibility and loyalty. When you buy a franchise, you bypass much of this work since the franchisor has already developed the brand.

Franchising gives you instant access to an established, recognized brand which can jump start your path to profitability. The brand’s established online and offline presence, credible customer testimonials, and recognition in the community make it easier to connect with customers.

Potential customers can read what others say about the brand to decide whether the business aligns with their needs. Good testimonials give others the confidence they need to connect and work with the brand too. If you start a business from scratch, you must create that presence and credibility before anyone will connect or even consider buying.

A franchise offers consistency and consistency benefits customers, franchise members, and the network. Customers know that they will receive the same high quality products and services no matter where they choose to connect. If a customer knows the brand and expands into a new territory, they’re more likely to rely on the brand again.

Buying into a brand also taps you into the franchisor’s collective buying power. They access bulk prices and pass their savings onto franchisees. This leads to lower prices for supplies and inventory than you could access as an independent business owner.

One often overlooked benefit of franchising is shared marketing costs. Every new business must invest in promotion if they want to succeed. Franchise networks often offer overarching regional and national advertising campaigns which leads to lower costs.

Of course, the franchisor has helped many other franchisees start their business so they can provide valuable local advertising advice which can also save you time and money.

Since your franchise operates under the franchisor’s brand name, you can also rely on them for advice and support to avoid any legal issues that can arise in business. They also understand franchise law and can either connect you with their franchise lawyer or direct you to appropriate advice in your province or territory, as regional law varies.

3.    Unlimited Growth Potential

When you work for someone else, there’s always a limit to how much you can earn and it’s always within the confines of the company’s demands. You might work grueling hours to make top dollar, only to discover the company’s taken a direction you don’t appreciate or even worse, you’re redundant.

One of the greatest draws towards entrepreneurship is the potential to make your own decisions, directly benefit from your actions, and build wealth. You could start an independent business, but it would certainly take you much longer to build wealth. You’d have to get through the initial process of establishing your brand and developing products, services, policies, and procedures first and that can take years.

Franchising speeds up the process. Yes, you’ll work hard, but you’ll spend far less time on the setup process. Instead, you’ll get down to building your business so you can start earning money. Some franchise models also allow you to run a home-based business with additional advantages.

You only need look at some of the most popular franchises to see how immensely profitable and successful they can be. Almost every major hub in Canada has at least one Tim Hortons, Subway, or Canadian Tire. That wouldn’t be the case if franchising wasn’t a great option.

4.    Fantastic Business Choices for a Modest Investment

You needn’t invest heavily to enjoy the benefits of a franchise. While big brand franchises can cost upwards of a half million dollars, many companies offer great opportunities at a more modest investment level.

Nonetheless, franchises that only want a small investment such as $10K are usually in a saturated, high-risk market so they’re not a good investment at all. For most budding entrepreneurs, an investment of around $100K to $150K works well as it ensures a dedicated, unsaturated territory with room for business growth and the extensive franchisor support you need.

Putting your money to work and actively managing your business can lead to greater profits than you could ever dream of earning through traditional investments.

Additionally, you can choose a new industry, find a new career, and expand your business and personal skills; all under the helpful guidance of a proven leader.

5.    Motivated, Effective Management

A good franchisor is very motivated to help owners and the network succeed. They make decisions based on what works well for the brand, but that doesn’t mean they don’t listen to the franchisees.

On the contrary, a good franchisor thrives of feedback and innovation. Entrepreneur.com lists collaboration as one of major reasons an individual should consider franchising over owning an independent business.

A good franchisor listens to member ideas, analyzes which benefit the brand, and implements the most viable. They also keep a sharp eye on expenses and performance and always strive to increase revenues and eliminate inefficiencies.

They also connect with regional and national organizations, follow industry trends, and monitor legislative changes. By continually improving their knowledge, management skills, and the brand they ensure the business model remains relevant and competitive in an ever-changing market.

6.    Hit the Ground Running

Opening a privately-owned business is a daunting, complicated task, especially for a first-time owner. However, good franchisors are highly-invested in their franchisees and offer plenty of assistance to get the new member’s business up and running as quickly and effectively as possible.

A good franchisor provides intensive initial training so the franchisee understands the business model, policies, and procedures. They also offer valuable pre-opening assistance such as advice on opening inventory levels and marketing strategies so the new member feels fully-prepared before they officially open their business.

Nonetheless, not all franchises offer a very quick start up due to the complexity of the business model. For instance, a restaurant franchise setup could take a year or more, because it involves site selection, restaurant design, construction, inventory, employee training, and more.

However, some franchises have you up and running within 60 to 90 days of signing your franchise agreement. A quick start up is very appealing as you can recoup your investment and earn revenues quickly, instead of locking your money into an investment without profits.

7.    Extensive Support

A good franchisor also offers ongoing support and connects the new member with other owners in the network. If you have questions, franchisees can offer advice and encouragement since they’ll been through the process themselves and know the business model.

If you have a question about a product, inventory, marketing, or even how to complete a form, someone’s there to help you. Some franchise networks can also connect franchisees with financial assistance if they want to expand.

With franchising, you run your own business, but you’re not alone. As a franchise member you tap into resources and opportunities unavailable to an independent owner. This often includes seminars, continuing education, and networking events. All this is invaluable to a new business and especially to someone new to the industry.

A good franchisor wants you to succeed and they’re available to you along the way. Your success leads to network success, which benefits everyone.

8.    Achieve Work/Life Balance

One of the greatest draws of entrepreneurship is a better work/life balance. Instead of working long hours for someone else just to earn a pay cheque, entrepreneurs want to seize opportunities, make decisions and enjoy the benefits of their efforts, and create a business with a more flexible schedule to blend work and home life more readily.

However, not every franchising opportunity offers the flexibility an entrepreneur might want. Some are very rigid and demanding, while others offer flexible options such as starting your business from home.

Instead of sitting behind a desk and in commuter traffic, franchisees can often balance routine business requirements such as scheduling appointments and administrative duties with stimulating customer contact in the field. Without commuter time and countless meetings, you can focus more on your business and increasing profits.

Operating a home-based business also reduces overhead, commute, and vehicle costs and you can deduct a portion of your mortgage interest, property taxes, utilities and repairs and maintenance, against your business income. Plus, you can carry forward any unused credits to offset profits in future tax years.

Reduced fixed costs also provide you with a competitive advantage. While the franchisor might suggest baseline prices, a franchisee has the freedom to offer more favourable quotes when responding to their local market and customer needs.

Of course, the greatest advantage of working from home is greater time management freedom. You can juggle your schedule to meet your family and social obligations and connect with customers at their convenience too.

9.    New Career

A good franchisor provides you with the training and support to expand your business skillset. However, a good opportunity also taps into your transferrable skills gained through your years of work, such as sales and customer service experience.

Clearly, it is very important to research franchising thoroughly to decide whether the business model and training offered aligns with your personal and business goals. However, the right opportunity is a great way to start a new career and a business of your own.

Look for a franchise with a long track record of franchisee success and a comprehensive training program. Check for participation in nationally recognized organizations such as the Canadian Franchise Association that advocate for the franchise industry and govern members through a strict code of ethics.

Also determine whether the franchisor has received any prestigious awards based on franchisee response. For instance, the CFA Franchisees Choice Award measures the performance of a franchise based on franchisee feedback. These awards indicate the franchisor focuses on its members for greater business and network success.

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The ideal franchise candidate must be in position in their life where they have the resources to invest in their future and the drive to become an entrepreneur. Entrepreneurship can offer financial freedom and choosing a franchise with unlimited growth potential and a quick start up can eliminate the long runway needed to launch an independent business.

Matching your business and personal goals and skill set with the right franchise opportunity increases your chances of success. Postcard Portables’ highly-respected brand and strong franchise network offers unlimited growth potential for a low investment amount. We offer home-based business franchise opportunities throughout Canada and most franchisees are up and running in 60 to 90 days. Those with sales experience or anyone looking for a balance between face-to-face customer interactions and routine administrative tasks would find a franchise with Postcard Portables very attractive. Contact us – we’re always happy to help.

Why Franchising is like Fishing

Estimated Reading Time: 10 mins, 30 secs.

If you’re reading this blog, you are probably considering owning a franchise, or maybe you’re really into fishing. If you think about it, franchising is like fishing.


When you own a franchise business, you are the captain of your own ship. As a result, you chart your own course. You also have the added benefit of the franchisor as a seasoned navigator. The franchisor has traveled the waters before and is there to provide advice to keep you afloat.  Here are some key things to consider about franchising before you dive in.

Franchising is like Fishing - Postcard Portables

Prepare Before You Launch

It can be hard to let go of your current job, even when you’re dissatisfied. You may cling on hoping things will improve and pray your steady income continues. It is important that you prepare before you launch and choose the right franchise opportunity to achieve your personal and business goals.

With so many franchise opportunities available, you may not know where to start. The Canadian Franchise Association, Canada’s franchising authority for over 50 years, offers many resources including government primers, statistical data, reports, and articles. You can buy their official starter kit which includes guidebooks, member directory, magazines, and question checklists for just $40.

Since it’s an important decision and you’ll invest a sizable sum, don’t rush the process. The following suggestions will help you narrow your choices, pinpoint good franchisors, and find the one that suits you best.

What Are Your Goals?

Everyone has their own motivation for entrepreneurship so consider your goals. Are you interested in a better work/life balance, greater income, building equity, or unlimited growth potential? The franchise you select should flow from what you’re trying to accomplish.

What Role Do You Want To Play?

Some franchises offer hands-on opportunities as an owner/operator who’s directly involved in running the business. Others involve hiring staff who manage day-to-day operations and the franchisee provides oversight. Consider what you see yourself doing on a daily basis.

How Much Time Do You Have?

Few franchises allow you to work part-time and retain your full-time job. Some allow you to start as a home-based business and as your business grows you have the option to transition to a brick and mortar establishment.

However, if you’re just looking to supplement your income by working evenings or weekends, you’ll find far less opportunities. Franchisors want dedicated franchisees to strengthen their network and increase profits.

What Are Your Skills?

When considering a franchise, you may not need to know the industry, since many franchisors provide system training and support. However, good franchisors are also very selective. They search for the best-qualified candidates with the skills and capital needed for success.

If a franchisor is too eager to sign you without understanding what you offer, be wary. Good franchisors want to know whether you have entrepreneurial drive and basic business skills such as sales, marketing, and customer service experience, before they welcome you into the fold.

What’s Your Budget?

Franchise costs vary greatly and buying a franchise for $10,000 isn’t necessarily a good investment. It is more likely to be in a very competitive, saturated market with a high turnover rate. Additionally, inexpensive franchises usually offer little support or training and it’s harder to build a business you can resell.

Weigh your initial investment against the expected return and whether the business model suits your goals. If you don’t want to invest heavily, consider a home-based business that you can start quickly and affordably.

Thoroughly analyze your financial situation and calculate your maximum budget, including a financial cushion during the startup period when your business will not earn substantial income.

How Much Risk Can You Assume?

Once you’ve reviewed your financials, you’ll understand what you can afford. Nonetheless, some franchise opportunities are riskier than others.

If you’re risk adverse, look for a well-established company with a long track record of franchising success. If you’re more willing to take chances, a cutting edge company could potentially offer higher returns, but you will assume substantially higher risk.

Request A Franchise Information Package

After going through the previous steps, you’ll have a list of potential franchisors and many questions too. Reach out to the franchisors and ask for a franchise information package.

They’ll provide you with information such as a company history, support and systems summary, pertinent media articles, their mission statement and vision, answers to frequently asked questions, statistical data, estimated startup costs, application information, and more.

Read through the documents carefully and don’t be afraid to ask questions. Franchise laws vary between regions. The Canadian Franchise Association maintains a current list of laws and legislative developments for each province and territory here. You should understand the requirements for your region.

Ask For Franchise Disclosure Documents

Once you’ve reviewed each Franchise Information Package, you’ll have a shorter list and much more to do. Franchisors are in the business of selling businesses and glossy brochures and slick presentations do not guarantee a good franchise or franchisor.

Your province or territory may not require the franchisor to provide you with a franchise disclosure documents (FDD). Nonetheless, a good franchisor provides them voluntarily and they should meet the minimum legal standards for your business location.

Good franchisors are proud of their accomplishments and not afraid of scrutiny. All CFA members are required to provide disclosure documents in all Canadian provinces and territories.

Comprehensive Franchise Disclosure Documents allow you to truly size up the operation and compare it to others.

Review the FDD

Seek assistance from a franchise attorney if you don’t understand anything within the documents and definitely before you sign a contract.

Areas of particular interest include whether the franchisor has been or is involved in any litigation such as a bankruptcy. Lawsuits can also indicate a flawed system or poor franchisor management.

Check the payments and revenue model carefully. It describes the initial franchise and ongoing royalty fees and whether you’ll pay for marketing and advertising. You’ll also find information regarding unit financial performance.

Rules and restrictions are extremely important. Franchisors impose these to ensure uniformity and to describe operational and reporting requirements, your sales area and your rights to terminate, resell, or renew your franchise.

Some franchise owners buy with the intention of business growth and equity so they can later flip it and turn a profit. Consider whether the franchise suits your goals and offers the growth potential and flexibility you need.

Talk To Franchisors

After reviewing the Franchise Disclosure Documents you will probably have a very short list. Talk to the franchisors in-person to get a sense of their management style and personality.

We also suggest you ask for the following information, even though the answers may be in their written material. Personal conversations give you a good idea of the franchisor’s management skills and how well they know and interact with their business:

  • What is your business background? Have you owned a small business?
  • How long have you run the franchise?
  • What is the experience of the management team?
  • Are you a member of the CFA?
  • How do you determine exclusive territories?
  • What are the franchisor’s plans for future development?
  • What kind of system, marketing, and advertising support and training do you provide to franchisees? Is it ongoing?
  • Have any franchisees failed? Why do you think they did?
  • How do you resolve conflict?
  • How do you choose franchisees? What skills and experience do they need to succeed?
  • Describe a typical franchise owner (age, gender, marital status, background).
  • Describe the typical day of a franchisee.
  • Would you be willing to share your business plan complete with your marketing strategy and financial projections?

The CFA starter kit offers many more questions beyond what we’ve provided here. The Globe and Mail suggests membership in the CFA is an essential factor when assessing a franchise. They are the only association of franchisors and service providers in the franchise industry in Canada and follow a strict Code of Ethics.

Ask about everything and anything that concerns you. Discussions help you judge what it would be like to work within the network and with the franchisor. Remember, you won’t experience the benefits of franchising unless the franchisor and network function well.

Talk to Franchisees

Once you’ve thoroughly vetted the franchisors, you’ll need to talk to the franchisees. Don’t waste their time as they have busy schedules.

Establish a rapport and let them know you’ve already researched the brand and want their valuable input. This makes them more likely to be forthcoming. Additionally, the franchisor may ask them what they think of you if you decide you want to invest.

Ask each franchisee whether they felt well-prepared to operate the business. Did the franchisor provide in-depth training and support during the startup process? If so, that’s a very positive sign the franchisor cares about franchisee success.

Also ask them about any difficulties they’ve encountered. Did the franchisor handle issues tactfully and for the benefit of the network? What do you think the franchisor might have done differently?

Don’t shy away from financial questions. Franchisees understand the true cost of operating a franchise and how soon you might expect to start earning money. They can also clue you into how long it took them to earn decent income. Of course, these are only estimates since every area varies as does the business savvy and determination of the owner.

Always weigh their comments carefully and follow your gut instincts. A good franchise network includes like-minded individuals working hard to achieve common and franchise goals. Adding another great franchisee to the network benefits them too so they should offer honest advice and accurate information.

Ask the franchisee if it is possible to spend a day with them to see how they spend their time. Meeting a person face-to-face is a great way to build a relationship and to see first-hand how they create success. If possible, visit several franchisees near you to get a broader picture of operations and how they may differ.

You’ll also want to understand how the franchisee perceives the franchisor’s management style. Do they listen to network members and adopt worthwhile suggestions? Or are they top-down managers that dictate the direction of the company and ignore member feedback?

Finally, ask the franchisees whether they feel they get value from the fees they pay. The advantages of networking include avoiding expensive mistakes and tapping into a track record of success. Consequently, the franchisor must provide you with training, support, and a proven business model to create success and outweigh these costs.

Further Research

Besides investigating potential franchisors, you’ll want to check out the industry, competition, and any failures in your area. Statistics Canada provides data based on the industry or the NAICS code.

A simple Google search is the easiest way to find competitors in your area. If you discover someone tried a similar business but failed, try to discover why. Nearby businesses and even competitors can often provide information about work quality, business practices, financial strains, and reputation that led to their demise.

Buy Your Boat & Start Fishing!

Once you’ve done your research, you’ve probably identified a clear leader. The only thing left to do is to start the application process to discover whether the franchisor feels you’re a good match too.

If you’ve done your due diligence and discussed the opportunity with the franchisor and franchisees, this is usually a formality. You and your franchisor become partners for the mutual benefit of growing the business.

You’ll pay the appropriate fees and the franchisor prepares the documents which you’ll review with a franchise attorney. The franchisor then starts the training process so you can start fishing and reel in customers.

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Postcard Portables has franchise opportunities throughout Canada. It is simple to get started operating your home-based business.

Our highly-respected brand and franchise network offers unlimited growth potential for a low investment amount. Ask yourself: Are you ready to get off the dock and into your own boat? If so, contact us – we’re always happy to help.