Ending Soon! Save 33% on All Access

Big Things Come in Small Packages – The Value of Micro-Franchise Brands For entrepreneurs looking for small-scale business opportunities, micro-franchises might be the best route.

By Jeff Cheatham

This story appears in the September 2022 issue of Start Up.

What if you could operate a franchise from home? That is the promise of the microfranchise, which has all of the attributes of a traditional franchise business model, but with a smaller operation that can be mobile-or home-based. This can be perfect for first-time franchise buyers and budding entrepreneurs alike.

The fundamental appeal of the microfranchise is the ability to start a small operation that targets a specific, often niche low-cost product or service in a high-traffic or high-volume territory. Owners begin with a targeted effort that starts small but grows larger as the initial profits are reinvested in the business. While microfranchises can be found across a wide variety of industries, some of the most common examples include residential and commercial cleaning, kiosk-based retail operations, dog-walking, and pet-sitting. Here are three benefits of microfranchises.

A close brand relationship.

Thanks to a microfranchise's scalable nature, the relationship between franchisor and franchisee can be much more intimate than a normal franchise partnership. "I was able to learn so much from our franchise brand owner and felt he really wanted to see us succeed," says Noel Trim, who, along with her husband, Jason, owns a property maintenance microfranchise called Second Home Care in Kailua-Kona, Hawaii. "I felt secure and safe making this leap with their help and leadership."

Related: From Poop Scooping to Dryer-Vent Cleaning: Why Hyper-Niche, 'Micro' Franchises Are Booming

A little less risk.

Microfranchising is growing in less-developed countries, and the concept has helped lift many people out of poverty. They often require less investment than a typical franchise while offering the same upside of selling a known entity in a specific territory. Also, because of the operation's scalability and lower price-point, franchisees don't have to maintain large inventories. Microfranchisors also typically provide marketing, advertising, and promotional initiatives for the franchise system — one less headache for new owners. More than anything else, the simple fact is that there's always less risk when you can grow and expand at your own pace.

Related: 4 Essential Things to Know About Franchising

A business entryway.

With a microfranchise, budding entrepreneurs and existing franchisee candidates can get in the entrepreneurial game without a big, upfront investment — while still getting all the help and benefits of following a proven business model. This built-in systemization can make microfranchises an especially appealing choice for first-time business owners who want to dip a toe in. Though, of course, it's always advisable to do your own research and seek the counsel of franchising professionals to assist in your efforts. After all, micro or not, only you can decide which franchise is best for you.

Related: These People Signed Up to Be a Brand's First-Ever Franchisee. How Did That Go?

Jeff Cheatham

Founder and CEO of Creative Content

Jeff Cheatham is the founder and CEO of Creative Content, a full-service copywriting and public relations firm. He's based in Dallas and works with multiple B2B clients and over a dozen franchise brands to develop proprietary content campaigns for lead generation and sales development programs.


https://creativecontent-llc.com/

 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

'Creators Left So Much Money on the Table': Kickstarter's CEO Reveals the Story Behind the Company's Biggest Changes in 15 Years

In an interview with Entrepreneur, Kickstarter CEO Everette Taylor explains the decision-making behind the changes, how he approaches leading Kickstarter, and his advice for future CEOs.

Business Ideas

87 Service Business Ideas to Start Today

Get started in this growing industry, with options that range from IT consulting to childcare.

Business Models

How to Become an AI-Centric Business (and Why It's Crucial for Long-Term Success)

Learn the essential steps to integrate AI at the core of your operations and stay competitive in an ever-evolving landscape.

Marketing

5 Steps to Preparing an Engaging Industry Presentation

You can make a great impression and generate interest with an exciting, informative presentation. Find out my five secrets to creating an industry presentation guaranteed to wow.