Advantages of franchising: Why it pays to buy into an existing brand

By Published On: March 23, 2023Categories: Pet Business5.9 min read

A LendingTree survey asked consumers considering entrepreneurship, what was holding them back. The top three reasons were:

  • 40% – not enough capital
  • 33% – general anxiety or fear it won’t work out
  • 27% – lack of enough time

These are not uncommon barriers, and yet, they can all be met through franchising. Thinking about buying a business? Learn more about the advantages of franchising and why it may be your most lucrative investment choice.

Own a franchise or go it alone?

Franchises and independents offer different things for people looking to invest in a business, and when making that comparison, the advantages of franchising can be significant.

The International Franchise Association commissioned a report entitled The Value of Franchising. The authors noted that entrepreneurs will choose a franchise rather than establish an independent business when the franchise venture shows a higher likelihood of success and survival.

A big benefit of franchising is the support that comes with the investment, including site selection, marketing, training, and operations.

When working with a franchise, you’re starting with a proven business model. If you choose the non-franchise option, you have to do a lot of the same work but without the guidance of industry professionals.

Franchising levels the playing field in business

A key advantage of franchising is how it levels the playing field for people who are interested in starting a business but who may not have enough experience to take on a solo venture. For business-minded people without a history of ownership, franchises make the transition much easier.

Franchises also present an equal opportunity to own a business. The Value of Franchising reports that:

  • 17% of independent businesses are estimated to be owned by people of color, while 26% of franchises are owned by people of color
  • 32% of all respondents would not own a business if they were not franchisees
  • 39% of female owners and owners for whom a franchise was their first business would not own a business if they were not franchisees

Advantages and disadvantages of franchising

When you compare the pros and cons of franchising, it’s all about time and risk. “One of the many advantages of franchising is that much of the leg work required to establish a brand and business model is done for you. This certainly saves you time and will also likely save you money resulting in a lower-risk choice. Other key advantages include decreased start-up and operating costs leveraging the established brands scale, access to a vast array of otherwise inaccessible tools, and a robust support team with years of industry knowledge geared to help you accelerate growth. If you choose to go it alone, you’ll likely need to do a lot of research, and even a little guesswork to get things moving.

Getting established

You can start a franchise more quickly because the franchisor has done most of the work for you. Their team can provide a market analysis to ensure an ideal location is secured, operational procedures are in place, vendor relationships are established, building plans are completed and marketing plans are ready to implement. Without a franchise, you still have to do those things, you just have to do them yourself or hire others to help you.

The financial truth

Franchises require you to pay an upfront fee and royalties for unlimited support from the expertise of the franchise team. However, they are pre-set fees, allowing you to plan ahead and set your budget. Even with an independent business, you will still incur upfront fees and ongoing operating fees, but they fluctuate, and you won’t know what they are until after they happen.

Also, securing funding to start your business is typically easier when franchising. Since franchisors have strategic partnerships with lenders, franchisees can get loans more readily. When partnering with a franchisor, you get a little bit of their clout which will serve you well throughout your agreement.

Leveraging the franchisor relationship

Without a franchise business, you have to build your own support system. You’ll need to implement any technology improvements, partner with vendors, and handle business promotion on your own. With a franchisor, you’ll be able to take advantage of established relationships across the board. All vendors and partners have been vetted by the team so you know you’re working with reputable businesses.

What makes a good franchise investment?

Woof Gang Bakery & Grooming was established in 2007 and has 180 operating franchises to date. Our franchisees have several reasons for choosing us When looking for a good franchise investment, there are some key considerations to look for.

Low start-up costs

Woof Gang Bakery & Grooming has an initial investment range of $155,300 to $280,400, including a franchise fee of $49,900. Your royalty fee is 7% monthly, and your marketing fee is 2% monthly.

Franchise partners should have at net worth of $500,000 and at least $150,000 in liquid capital.

Minimal staff

Franchises with high staff requirements, such as quick-service restaurants, will take longer to reach a break even point than franchises like Woof Gang Bakery & Grooming with minimal staff requirements. With a smaller payroll cost, you can capitalize on your investment more quickly. An advantage of the Woof Gang concept is our groomers work on a commission basis, usually 40-50%. This means profits are not exposed to minimum wage adjustments.

Franchise and industry future

You want to do business in an industry that has a good outlook for the future. Woof Gang Bakery & Grooming had store sales grow 15% in the past five years with 180 locations open or under development. The current average unit volume (AUV) for franchises is $656,000 and the franchise goal is to grow average sales per store to $1 million in the next five years.

From an industry standpoint, there are 85 million pet households in the U.S. with pet owners spending more than $100 billion in 2021. The industry size for pets is double that for pizza and five times that for hair salons, making pet-focused businesses a unique opportunity.

The Business behind the brand

Beyond the brand support, choose a franchise that aligns with your values as the kind of business owner you want to be.

At Woof Gang Bakery & Grooming, we look for people with a passion for pets, who enjoy a fast-paced, dynamic environment. Since our business model is not just pet-focused, but also people-focused, franchisees should have a knack for customer service and a genuine desire to make a positive impact on their communities. While previous pet industry experience isn’t needed, franchise partners should be coachable and willing to follow Woof Gang’s training and operational standards.

Become a Woof Gang franchise

Woof Gang Bakery & Grooming is the leading specialty retailer of pet bakery, pet food, pet supplies and professional pet grooming in North America. Our AUV has grown from $439,000 in 2016 to $665,000 as of May 2022!

A pet retail store and dog grooming franchise is a business that can provide a high quality of life. With Woof Gang, you’ll be able to grow your business portfolio and have fun while doing it. If you’re interested in learning more about our franchise opportunity, fill out this form and one of our representatives will be in touch.


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