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Franchise Ownership: Four Big Ways It Benefits You


For many potential business owners, four words often top their list of reasons for taking the leap into starting their own company: “Be your own boss.” Having autonomy over your career is a clear advantage of launching your own independent business, but it’s not without significant risks. That’s where franchise ownership comes in.


Starting a franchise business allows you to be your own boss with the added benefit of receiving support from the franchise’s knowledge base. As a franchise owner, you’re in business for yourself, but not by yourself. Essentially, a franchise gives you, as the franchisee, the right to use someone else’s business system.


In other words, a franchise is a type of license that grants a franchisee access to a franchisor’s proprietary business knowledge, systems, processes, and trademarks, typically allowing the franchisee to sell a product or service under the franchisor’s business name, in exchange for a franchise fee. There is also a private or white label franchise model, where the franchisor provides the business knowledge, systems, processes and doesn’t require the franchisee to take the franchise name, or trademarks. While the franchisor maintains the business process, the franchisee agrees to operate their business in accordance with a contract (franchise agreement) and the franchisor’s model.


Types of Franchise Ownership Opportunities


According to the International Franchise Association, there are more than 785,000 franchise establishments in the U.S., which contribute almost $500 billion to the economy — and nearly every industry includes a successful business practice sold as a franchise. In addition, there are three different business models for owning and operating a franchise: owner/operator, executive/absentee owner and semi-absentee owner.


The owner/operator model is the most common type of franchise ownership, and requires the franchisee to be involved in all aspects of day-to-day operations. That means all of your time and focus is on managing and growing the business. Conversely, the executive/absentee model is designed to be a hands-off type of ownership, whereby the franchisee need not be present for the company to function. The goal is to continue to invest the profits from one franchise to buy another one.


Lastly, the semi-absentee model is designed to be manager run, with the owner regularly checking in to help, when necessary, while still having time to pursue other ventures. Since semi-absentee and absentee franchises require that franchisees have the capital necessary to keep the business viable and also to buy more franchises, there are very few of these types of opportunities available.


How Franchise Ownership Benefits You


Franchising could be the right choice for you if you’d like to go into business for yourself, but could do without the hassle of building your business from scratch. It’s important to do plenty of research before choosing the franchise that best fits your goals. This includes an understanding of the top four benefits of becoming a franchisee:


  1. Higher Success Rate/Lower Risk – While starting your own company can be rewarding, it’s also risky, and the failure rate for new businesses is high. In fact, according to the U.S. Bureau of Labor Statistics, roughly 20% of startups don’t survive the first year. What’s more, about 50% last until year five, while just 30% are still in business after 10 years. Going the franchise route can increase your chances of success by mitigating risk and offering greater support, which leads to satisfied customers. Specifically, owning a franchise gives you access to:
  • An existing and successful business model that comes with a proven track record, a successful training program, a solid supply chain, and more;
  • Expert support and training programs that teach you how to run the business and orient new employees;
  • An easier time securing financing from banks, including loans backed by the SBA (Small Business Association); and
  • Inventive systems and technologies that you may not otherwise be able to afford, manage or operate as an independent business owner.


  1. Chance to Be Your Own Boss There’s no denying that one of the best things about owning a business is being your own boss. With that benefit comes advantages such as creating your own schedule and working remotely at times. Best of all, you can avoid the pitfalls and risks that accompany starting your own independent business. You’ll work hard, but you’ll also gain valuable business assistance from the franchisor. In some cases, you may even receive a turnkey business operation, giving you everything you need to operate the business.


  1. Opportunity for Higher Profits – In general, franchises have the potential for higher profits than independently established businesses. Even franchises with a high initial investment can see a high return on that investment. Franchises tend to be more cost-effective than independent businesses because the operational costs have been optimized to increase efficiency. Since many of the tasks you’d normally do are taken care of by the franchise, you can focus on growing your business.


  1. Way to Create a Nest Egg for Retirement – There’s no right or wrong age to start a franchise, but many people find that their 40s and 50s can be an ideal time to start a business that may help build a nest egg for the future. Those who are well established in their careers have likely gained the skills and self-discipline necessary to succeed as a franchisee, may have greater access to the funds necessary to get started, and still have plenty of time to build a substantial nest egg. Plus, they can pass down the business to their adult children when the time is right, building a lasting legacy.


Choosing Your Franchise Opportunity


When it comes to deciding whether to start your own independent business or launch a franchise business, it’s necessary to determine what type of ownership you desire, with the owner/operator scenario the most probable choice. You may think you need to have extensive knowledge of the franchise’s industry to become an owner, but that isn’t always necessary. What is necessary is an interest in the industry, along with an entrepreneurial, growth-driven spirit and solid work ethic. As with all successful businesses, what you put into it is what you get out of it.


Take Control of Your Future with Proliant


Those interested in starting a title company franchise will be glad to know that Proliant Settlement Systems can eliminate the roadblocks to business ownership. Proliant’s private-label franchise system can dramatically simplify the process of starting, owning, and operating a successful, full-service title agency. You focus entirely on building your brand while we provide you with all the necessary production support.


Our fully compliant system will provide you with:


  • I.T. Infrastructure: Our unique, customized title software platform that is intuitive, easy to use, and easy to learn. What’s more, it’s a plug-and-play system, so you don’t have to incur the costs or headaches typically associated with I.T.
  • Title Production Support: We provide all our franchisees with title production support and assist in the title closing process. Every requested property is thoroughly researched by our veteran title staff who then prepare your title report. This also helps you cut down on your staffing needs.
  • Training & Support: Extensive on-site training is provided. From simple tasks to complex processes, we are your first line of support. We have the tools and resources to help you grow your skills the moment you open the doors and provide continuing I.T. and operational support throughout the process.
  • Quality Control Review: Our comprehensive quality control review process eliminates errors before you get to the closing table.
  • And much more!


Plus, unlike most franchise agreements, your brand is exclusive to you — the name on the door is yours. Contact us today to learn how you can start your own title company with the most difficult barriers to entry removed.