The Franchise Business Model and Why It Works

Investors and entrepreneurs favor the franchise business model because it carries a great many advantages that starting a business independently does not.

This business model has grown in popularity over many years. One of the first instances of franchising dates back to 1731 when Thomas Whitmarsh and Benjamin Franklin agreed to carry on the “Business of Printing in Charlestown in South Carolina.” While there were some differences in their agreement to modern-day commercial franchising, there are certainly similarities between the two.

Today, there are over 774,000 franchise businesses in the US alone. Franchises in the country have a total economic output of $787.7 billion, and these businesses employ over 8 million Americans.

At Bread Zeppelin, we are experts at making delicious salad dishes, but we are also experts in qsr franchising, with a proven business model that sets us apart from most qsr franchises. Read on to learn more about the franchise business model and its benefits.

What Is the Franchise Business Model?

Franchising is a business model based on the relationship between the franchisor and the franchisee. This model aims to distribute products, services, and an established brand name. But what are franchisors and franchisees?

The franchisor is the person who has established the franchise brand and trademark. The franchisee is the business person or entrepreneur who purchases the rights to operate under that brand name and trademark, typically through royalty payments and initial franchise fees.

The franchise business model is attractive to franchisees because it offers them the backing of an established brand and a proven way of doing business, things they wouldn’t get if they decided to start an independent company from scratch.

As we mentioned, one of the most important aspects of franchising is the relationship between the franchisor and the franchisee. This is essentially what franchising comes down to. It’s this relationship that carries all of the business advantages that franchising has become known for.

The Benefits of Franchising

Any great franchisor should aim to provide its franchisees with a framework to succeed. Every franchisee should be provided with the tools and support to fully execute the excellence of the brand. If they are, they’ll be able to reap all of the benefits that franchising is recognized for and experience a greater likelihood of success.

  • Established brand awareness: When you invest in a franchise brand, you are tapping into the brand’s existing reach, which means you leverage a well-known name and trademark.
  • Lower start-up costs: Franchising is typically associated with lower initial investments compared to starting up an independent business from scratch.
  • Initial training and ongoing support: Any good franchise opportunity will include a solid initial training program to prepare you for opening your new business, as well as ongoing support that provides you with access to trained professionals who have the answers to all your questions.
  • An existing customer base: The franchise business model is known for its success because when you invest in an existing brand, you are also provided access to a built-in customer base. When starting a new business independently, you’d have to build this up from scratch.
  • Reduced risk: Franchising is associated with lower financial risk, mainly thanks to the proven business model you will get access to, which takes a lot of the guesswork out of running a business.
  • Increased profitability: Franchise businesses are typically known to be more profitable than independent ones. This is often because of the proven business model franchisees get to leverage, which leaves little room for error. Also, you’ll likely start making money soon after opening your doors, as customers who already know and trust your brand are bound to come to you for your familiar products and services.

These are all rewards that you will be able to reap when you open a franchise business, and Bread Zeppelin is no exception to this.

A Multi-Unit Franchise Investment with Bread Zeppelin Offers Franchise Partners a Path to Success

When you invest in a Bread Zeppelin restaurant franchise, you benefit from our established brand awareness, our time-tested and proven business model, expert marketing, and best-in-class training and support. Our popularity is driven by our freshly prepared ingredients, our quality meats marinated and grilled on-site daily, and the warm welcome guests receive from our friendly and engaged team members.

We believe that by prioritizing our franchise partners and helping them succeed, they will, in turn, continue to be dedicated to our guests. Your success in the fast-casual food industry is our success, which is why Bread Zeppelin is looking for franchise candidates interested in investing in three or more of our franchise units.

Are you ready to embark on your restaurant franchising journey with Bread Zeppelin? Join other multi-unit franchise owners by contacting us today to get started.