There are more than 120 industries that use the franchise format as their business model according to the International Franchise Association. Some of these businesses include automotive, lodging, fast food, real estate, and retail markets. For the entrepreneur owning a franchise outlet has many benefits compared to starting from an idea and entirely building a business from there. The franchise business opportunity offers a pre-set business format, established customer base and often an already known brand name.
In a franchise the entrepreneur buys the ability to use the trade name, products and the entire pre-set business model. With this investment the entrepreneur receives initial and ongoing support from the main franchise. The type of services and support offered varies with each franchise. Often these may include assistance with finding a location for the new outlet, initial set-up of the business, training, operating manuals, and marketing materials. Other ongoing support may include company newsletters, toll-free numbers, websites, workshops and seminars.
Investment into a franchise with a known brand name can be a financial benefit. With a product or trade name that is already popular there is often a pre-existing customer base. This can translate into less marketing needed to bring customers into a new outlet. In a franchise all the outlets have the same design and business format. The pre-existing customer base is already accustomed to the over-all business look and feel, making the new outlet with the same design and format a comfortable place for them to do business.
Franchise opportunities are widely available in today’s business market. One of the stronger businesses with a franchise model is the electronic cigarette market. Currently world-wide the e-cigarette industry has a strong growth rate. According to the Researchandmarkets.com global market summary report, the global e-cigarette market is expected to grow to over $50 billion by 2025. Even with new regulations being implemented in the United States, the e-cig market is still projected to see impressive growth through 2017.
Included with the strength of the vapor industry, investing in an electronic cigarette franchise outlet also has other financial benefits. An e-cig store is able to run in a retail space with a much smaller footprint than many other retail establishments. A smaller store requires fewer employees. Both of these assets tend to cut down on the store’s over-all expenses. As a newer industry an e-cigarette store also has the benefit of not having a lot of competition. Part of the e-cigarette market’s strength is the health concerns and strong regulations regarding the tobacco industry. The health risks and bans on public smoking has forced many tobacco smokers into trying to quit. E-cigarettes being non-tobacco products have become what many consider a safer alternative to smoking.
For the entrepreneur the franchise model is a sound business opportunity. With low overhead costs, a strong market and lack of major competition an e-cigarette store is the business to invest in. Make the electronic cigarette store part of a franchise outlet and you have a winning investment.
References:
- International Franchise Association. “What is Franchising”
30 March 2016
http://www.franchise.org/what-is-a-franchise
- Researchandmarkets.com. “Global E-cigarettes & Vaporizer Market Analysis & Forecast Through 2015 to 2025” Summary.
30 March 2016
http://www.researchandmarkets.com/reports/3244019/global-e-cigarette-and-vaporizer-market#pos-2
