Pros and Cons of Buying a Turn-key Franchise Business
Pros and Cons of Buying a Franchise Business
Considering starting a new business? You are probably faced with the same questions that thousands of people per year consider when deciding to invest time and money into their future - “do I start from scratch or buy into a successful model?” Many people have an entrepreneurial spirit, but most lack the knowledge, education, and know-how to get a business from a place of concept to a revenue stream. On top of having a unique selling proposition, small business owners will also need to become experts in accounting, marketing, customer service, and various modern-day technologies in order to make a profit. Nearly 50% of businesses fail in the first year and these elements are key indicators as to why.
This is where franchises come into play.
So, the alternative to starting your own idea is to franchise. When starting from scratch, one often struggles through all of the growing pains - spending tens of thousands on lessons learned. Even when purchasing an existing small business, you stand to inherit a bad financial model, vendor issue, bookkeeping problems, rogue employees, etc.
The franchise business model is designed to help people take control of their livelihood by investing in a business with an established system and a history of success. Franchise owners pay a fee to open a business with brand recognition and support. Franchises are local businesses, and their owners are thriving community members that are out there building relationships and even contributing to local philanthropic causes.
The ‘Pros’ of franchise ownership
There are several obvious pros to buying a franchise business. Let’s review some of them below.
Lower start-up cost
Starting a business from scratch is a big investment, and it’s likely that new business owners will encounter unexpected fees during the process. By law franchisors provide detailed startup costs in their Franchise Disclosure Document, or FDD, to eliminate guesswork and streamline your startup so that you know exactly what is involved in getting rolling. Purchasing a Color Glo International franchise requires a minimum investment of $55,000. We even offer discounts to veteran-owned franchisees.
Experienced Leadership
The leaders at a franchise are typically industry experts who have the knowledge to help add loyal customers. In the case of CGI, we’ve been building this business at a family-owned level since the 1970s. Color Glo franchisees are all over the United States and in dozens of countries. A franchisor with a solid leadership team can provide guidance and support regardless of where you are operating your business.
A network of peers
Franchise owners automatically join a larger family network of their peers. They can take advantage of their network for questions, advice, lessons learned, financial guidance, and more. You are not alone…
Training and field support
Franchisors offer decades of experience, training, and support to help new business owners achieve success. Many franchise owners do not have experience in their chosen industry prior to opening a franchise. They make their decision to buy based on a vetting process that checks various boxes on their list. To ensure its franchise owners are ready for their grand opening, CGI offers in-person hands-on training, and a field representative spends some time with new owners prior to opening. Our company also provides ongoing support and product development.
Marketing advice
Franchisors help their franchisees and new owners implement a marketing strategy for their businesses. They can help provide marketing materials and guidance on how to grow their business and customer base. When building a service-based business, one will need to put extra muscle into relationship building and getting your information into potential customers’ hands. Understanding how local directories work and building your digital footprint is also very important. Our partner at Raging Bull Digital offers resources for website design and local SEO for franchises.
The ‘Cons’ of franchise ownership
While there really are not many, starting a franchise may have some drawbacks for creative people that like to think outside of the box. The established processes the company has in place afford entrepreneurs less creative freedom than they may have with an independent business. Franchise owners are also required to pay annual royalty payments and marketing fees to the parent company. If you’re not looking reinvent a few wheels, then a Color Glo Franchise may be the perfect fit for you.
About Color Glo International
Color Glo International is the World Leader in the restoration and repair of leather, vinyl, velour, cloth, and hard plastics commonly found in the markets of Automotive, Aircraft, Marine, and Furniture. Formally incorporated in 1975 Color Glo began franchising in 1982. Today in hundreds of markets throughout the world. Color Glo products are proven every day to offer the correct results and best value every time they are put to the test.
We initially began our franchising in the United States and have since then expanded into Canada and 50 countries worldwide.
Our focus is restoring and repairing common defects such as worn and faded interior components such as leather upholstery, headliners, burns, and broken plastic or composite molding. These problems are found in the interior of every automobile, RV, truck sports vehicle, plane, or boat in use today.
Why Color Glo
We are a full member of the International Franchise Association – IFA
World market leaders for over thirty years
Top 100 best-selling franchises – worldwide
Totally exclusive proprietary water-based products
Patented Methods
Low investment – high returns – 70 / 80%
Unlimited market potential
Federal Aviation Accepted – FAA
Over 800 Licensed Operators Worldwide
You receive exclusive territorial rights
Full support and backup – 24/7/365
No additional investment
Low overheads
No direct competition
National / international website