Most of us believe in the power of creating something from nothing with our own efforts and energies. We desire the freedom of having our own project and dream the lifestyle of successful entrepreneurs. We can already imagine us on a jet, posting beautiful pictures of our latest trip to the Maldives on Instagram.
Working at your own speed, based on your rhythms, focusing on your own priorities. That’s how entrepreneurship is depicted on social media. But we all know that there’s another side, a much darker one, of the story. What if I told you that new business opportunities can be gained on a low budget? Let’s dig deeper into what franchising is and what are the pros and cons of opening your own franchise store.
What is franchising?
Franchising is a business model where you can be appointed by franchise brands to sell their products while receiving their know-how and assistance in return. This type of business investment allows you to start earning money from day one, by reducing the risks of seeing your business going bankrupt. It’s no wonder that the English word for “franchise” actually comes from the Anglo-French derivation of the franc term, meaning “free”. A business model that is not completely free of risks but with much higher flexibility.
How does franchising work?
The next time you walk your dog around your neighborhood, take a glance at those empty spots and property selling cards. Most franchise stores require a wide area of up to 700 square meters or more. Take for example the Korean fast fashion brand XIMIVOGUE with years of providing successful franchise opportunities to people worldwide. Find a store with an area of more than 100 square meters, located in shopping malls, commercial streets, pedestrian precincts, school and hotel around, tourist attractions, near the subway or the train station as well as in other crowded areas. Look at those spots with a door width exceeding eight meters, and you’re set to open your next XIMIVOGUE franchise store. You will receive their procedures, intellectual property, business model, brand, as well as the rights to sell their branded products. In return you will have to pay low franchise fees and comply with the obligations set in the Franchise Agreement. Don’t worry, most of the time this is limited to the use of colors, the service you should provide, the working hours and other measures to prevent franchisees from damaging their brand.
Why is franchising an excellent choice for you?
1. Low costs and more stable income
Not everyone has the time and enough savings for starting a business from scratch. And even more importantly, you can never predict how much money you will spend on creating your start-up and how much you might end up losing if it doesn’t go as expected. With a franchise store, you have full control over the opening costs of your business, and you’re even supported by franchise brands throughout the whole opening process. It’s like having a reliable partner that has all the reasons to wish your business could be as successful and as profitable as possible. Think of that as having a Gandalf for your trip to the Misty Mountains of entrepreneurship.
2. Fast registration and quick earnings
Besides the fact that opening your franchise store is quicker and smoother than doing it yourself, you can rely on a fully operative business investment just a few months after starting the whole process. You don’t even need to worry about hiring designers on Fiverr or UpWork, finding reliable suppliers for your products, negotiating the core aspects of your store with your business partners. And if you choose the right franchise brand, you can be even surer that this fast opening procedure will be backed up with even quicker profits. That’s the case of lifestyle brands selling consumer goods, including household items, bags and pursues, digital accessories, and that sorts of products. XIMIVOGUE, for example, has more than 7000 products available and adds new items to their product catalog at a rate of 800 items per month. The design is made to be eye-pleasing and catchy, while the prices are more than affordable for the vast majority of customers.
3. More support and backup in case of emergencies
Even just the idea of having to deal by yourself with emergencies in your management system or in your store can be daunting, especially when you are trying to expand your business at the same time. And even if Karma cannot be predicted, you know that those terrible situations will most likely appear when something is already not going that well. That’s the usual cherry on top of a disaster cake. However, with your franchise store you know you can rely on a team of people working for you exactly when you need them the most. Let’s go back to the brand we just mentioned. XIMIVOGUE has a very detailed ERP management system and supervisors working on shifts to be there for you at any time.
Wondering why we mentioned XIMIVOGUE? That’s because it’s one of the most successful franchises and one of the best franchises to own. Their international franchising network can already count on more than 1400 stores all over the world. New XIMIVOGUE franchise stores are popping up around neighborhoods at a speed of 80/100 new stores per month. You can visit Vietnam, Indonesia, Saudi Arabia, Malaysia, Thailand, Russia, and many other countries. You will find one of their stores in shopping malls and other crowded areas. One of their new franchise stores in Thailand was able to gather more than 70000 customers on the same day it was opened. Franchising is basically all about giving customers what they want while at the same time controlling your budget and ensuring high profits for yourself. And you can do all of this with the help and support of your biggest mentor, the franchise brand you decided to cooperate with.