Franchise Model vs. Mom-and-Pop 

Who wasn’t excited for Truvy, Dolly Parton’s character in Steel Magnolias, when her husband Spud revealed her new second hairdressing location in their sleepy Louisiana town? But, the traditional mom-and-pop store model with branch locations may not be the best model for rapid and sustained growth. In our current highly-competitive economy, established businesses, entrepreneurs, and others looking to launch their own business are seeking for something more stable and simpler. 

The Historic Mom-and-Pop Small Business 

America has primarily enjoyed a solid economic foundation throughout its history, and much of that can be attributed to the small business owner. Traditionally, this has been the local family business that offers specific products and/or services to a limited demographic location. Remember Truvy’s hairdressing salon above, or your favorite hometown restaurant growing up. 

In this aged business model, the owner is responsible for everything. Period. He or she (or the family) must own the land, build the building, acquire the stock or means to manufacture their goods, create a brand, and stay on top of advertising, budgeting, liability issues, and more, as well as coming up with the capital to underwrite the entire operation. 

Many times, the small mom-and-pop shop began in a basement or garage and struggled to grow into a successful enterprise over multiple generations. A number of current entrepreneurs may even point back to a relative whose similar struggle to achieve business success sparked their own journey. We have nothing but respect for this hard-working small business owner who reached out and firmly grasped his or her piece of the American dream. 

But is this the best model for business success in today’s economic climate? Raising capital for an idea, even a good one, is not easy. And while the dreamer may know their proposed product or service well, it is what they do not know concerning running a business that makes their journey so difficult. In an era of global digital marketing, online transactions, store apps, and other modern business innovations, who knows enough about it all to handle everything themselves? 

Today’s Franchise Business Model

Today’s business owners are looking for a model that will allow them to rapidly expand without leveraging their entire operation to make it happen. When it comes to starting a small business, few are choosing to start a traditional mom-and-pop shop. In fact, many hopeful entrepreneurs are quickly learning what they do not know, and are choosing to open a franchise. 

As of 2018, there are about 759,236 individual franchise units across the United States alone, and that includes the total number of franchisors and franchisees. These business owners decided there was no use in trying to reinvent the wheel when someone has already done it. To their credit, they chose to adopt a tested model of an already-successful business, which likely saved them from an expensive learning curve.

There are a number of advantages to opening a franchise instead of an independent mom-and-pop store. Consider just a few: 

  • A franchisee operates under a parent-company’s business plan, name recognition, corporate logo, and trademark.
  • A franchisee is provided with training and support resources from the parent company. 
  • A successful company franchise is attractive because of its inherent stability. This means investors and property owners are more likely to buy into a new franchise location because of the parent company’s track record. 
  • A franchisee can benefit from volume purchase agreements. 
  • A franchise owner is exceptionally motivated to succeed, as he or she is invested in their franchise location; it is essentially their own business. 
  • A company that chooses to franchise benefits from ongoing royalty payments as well as other initial income from each franchise location. 
  • Many company franchises provide helpful operating and marketing programs and promotions. 
  • Franchise owners enjoy day-to-day support from their parent company, and important perk for new business owners. 

For the business owner who wishes to grow his or her company, franchising allows for accelerated expansion in primary and tertiary markets. Your franchisees provide most of the necessary finances, personnel, and overall investment, while assuming most of the risk. Your franchise locations can open more rapidly than if you were opening your own branch locations, and at a fraction of the cost. And each new location means more steady franchise revenue. 

Whether you are seeking to grow an existing business or wish to launch your own small business, Franchise Guardian is your team of experts in franchise solutions and strategic consulting. Our unique “Guardian Strategy” ensures that you can easily manage the rapid growth you will experience in the franchising world. From creating the entire infrastructure and foundation for franchising success, to providing you with a sales force that vets and presents your opportunity using our proprietary digital presentation for optimal experience and conversions, our strategy leaves no voids. 

Franchise Guardian deploys modernized methods and techniques to highlight your brand’s values and unique opportunity to prospective franchisees to bring you the highest success rates, conversion, and growth. When working with Franchise Guardian experts, you will never be overwhelmed or worried about how to manage a fast pace growth agenda. Franchise Guardian is your all-in-one corporate team behind the scenes. For more information, call or contact us online. 

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