Why Open a Computer Franchise, Why Not an Independent Business?

The choice between owning a computer franchise or an independent computer business is a valid one for anybody looking to invest in a business. For a seasoned businessperson, building a new business can be relatively easier, but for someone who has limited experience in running a business, owning a franchisee can be a valuable choice. Here are some reasons why owning a computer franchisee is a better choice for first-timers.

Ready-Made Business Plan

The franchisor has a tried and tested business plan proven to succeed. That removes the risk of implementing a plan that might or might not work. Removal of such risks is a big bonus for a franchisee, especially a new business owner. You do not need to create a working system of how to run your business; you only have to follow it. That results in higher chances of succeeding in the business. Following a business plan that has led to the building of a successful computer franchisor is sufficient proof to know that it will lead to your success as well.

Easy Financing

Obtaining financing for a franchisee is often much easier than for an independent business. It is precisely due to the risk of failure that it is so. An independent business has no support, no prior records of success. However, a franchisor has a track record that financers can take a look at.

In the case of a franchisee, the financers are aware of the general potential of growth. According to the Franchise Business Outlook: 2016 released by the International Franchise Association, in the past five years, the average annual job growth in the franchise sector was 2.6%, nearly 20% higher than all businesses economy-wide. Additionally, the franchising sector added nearly 1 million jobs to the economy in the past five years.[i] The International Franchise Association also says that the franchise business is resilient to market threats, which shows the strength of the franchise model itself.[i]

Considering the future growth of franchise businesses and the increasing use of technology, a computer franchisee is more likely to receive financing easily than other business types.

Preliminary & Ongoing Support

Your computer franchisor will be responsible for providing initial and ongoing support. Even as support varies from company to company, usually the franchisor offers support in these areas:

  • Selecting the location for your business
  • Providing training regarding operations/systems
  • Help in advertising
  • Ongoing support in administration and/or technical department

Depending upon the franchisor, the franchisee can expect more support, including partial financing, marketing assistance and help in construction if required. Whatever support the franchisor has included in the contract, they are obliged to provide it. If you think you will require specific assistance, inform the franchisor of your expectation and get it included in the contract.

Partial Responsibility

A franchisor and a franchisee have an interdependent relationship. The franchisor receives advantages from the franchisee and vice versa. For a franchisee, this relationship is beneficial because the franchisor shares an important part of the responsibilities of running the franchisee business. Even when your computer business is running successfully, you keep receiving support from the franchisor in relevant areas. This ongoing help takes off the load of managing every aspect of the business yourself. In the long-term, it provides opportunity to the franchisee to start another franchisee business or enjoy more leisure.

The franchise model of business is flourishing because it shares resources for the mutual benefit of both the franchisor and the franchisee. If you are looking to start a new computer business, consider the franchise model to avoid risks and increase your chances of success.


[i] https://www.franchise.org/franchise-businesses-to-continue-growth-trend-in-2016-outpacing-economy-wide-pace