Any good entrepreneur will analyze a business concept from a variety of angles before taking on the risk of ownership. They’ll ask several questions, including whether or not to go independent or consider a franchise. Let’s look at the franchise side of things.
Are franchises a good investment? Should I buy a franchise? Are franchises profitable? How long does it take before a franchise becomes profitable?
These are all things that may come up during an investor’s research into owning a franchise. Since we at Plaza Pizza® know what it’s like to own a franchise, we’ll give an experienced take on what franchise ownership is like to answer what we can about franchise ownership.
Are Franchises a Good Investment? Answer #1: You’re Not Starting from Scratch
Is franchising worth it? In our quest to answer, we begin with a logical place: the starting point of the business.
Every business needs a working business plan from the very beginning. It’s how business owners acquire financing or attract investment capital. It also lays out the steps required to get the business up and running.
For an independent business owner, they’re responsible for the business from creation to reality. For some, this is an exciting challenge. For others, it can be a daunting proposition.
There are steps that generally are undertaken to begin a new business:
- Create the business plan and determine the target customer demographic
- Secure financing
- Choose a site for the business
- Apply for and secure permits and licensing for the business
- Build out location
- Source vendors, equipment, and insurance
- Hire and train staff
- Market and promote grand opening and beyond
These are fairly standard steps for most businesses. Steps may alter slightly depending on the type of services or products being sold.
For some investors, it may be a better experience to enter the business as a franchise owner rather than going through this process independently.
It can save time, money, and avoid pain points by following a time-tested opening process because a franchise development team has done this before.
Opening a business doesn’t have to be a struggle. It can also give the question—are franchises a good investment?—a positive answer.
Are Franchises a Good Investment? Answer #2: Going Into Business For Yourself, but Not By Yourself
Going into business as an independent owner can be rewarding—you reap the entirety of the profits, and you can make all the important decisions.
It’s also a huge responsibility. Independent business owners take all the risk if the business fails.
Is Franchising a Good Idea for Your Future?
Are franchises a good investment? In terms of sharing the risk, many entrepreneurs believe the answer to be a resounding yes.
Joining a franchise, such as Plaza Pizza®, helps mitigate some of the risk because franchise owners are joining a team that has a tried-and-true business model with a history of success.
Going with a franchise also comes with the backing of a franchise development team. Typically, these teams have been through the business opening process with prior franchisees, so they’re experienced and can offer plenty of advice and guidance to new franchise owners.
Is owning a franchise profitable? Another facet of franchising is having access to a cohesive brand marketing message. This can be a key factor not only in whether or not franchising is profitable and how fast the owner sees ROI.
Cohesive marketing across the brand benefits every franchise owner. When that’s also combined with business development programs to enable sales and smooth business operations as well as grow new customer leads, having the franchise brand handle these aspects can be a huge win for the franchise owner.
They can concentrate their efforts on the front-of-house and face time with customers while knowing the brand has their back with the overall brand messaging.
Are franchises a good investment? With the right franchises, absolutely.
Are Franchises a Good Investment? Answer #3: Becoming an Iconic Institution Like Plaza Pizza® Certainly Helps
There are plenty of franchises available that will fulfill an entrepreneur’s passion, just like how we started the Plaza Pizza® franchise. The Claggett family grew up eating Plaza Pizza®. We weren’t ready to see an end to the era when the original owners were ready to retire.
Are franchises a good investment? For us, franchising was an absolute key. We kept the concepts of Plaza Pizza® that made the brand a success in Ohio for more than 50 years—the fresh ingredients, the daily-made crusts, the proprietary recipes. As long as we continued those traditions while upgrading the payment and ordering options to match current customer habits, we’d have a winning combination.
For Plaza Pizza® customers, everything they love about the pizza that was created way back in 1971 is the same—the crust with the satisfying cracker crunch, the sauce with the flavorful zing, and the fresh, classic toppings.
Like any good business owner, we’re aware of changing customer needs as they grow, too. That’s why we’ve added to our menu to embrace new dietary requirements and tastes. Customers can order a cauliflower crust for a different pizza base option, and choose BBQ or Buffalo Chicken pizza flavors for a tangy or zippy new flavor.
Is it Worth it to Buy into a Franchise? An Expert Opinion
Are franchises a good investment? They can be incredible investments with the right brand, the right products and services, and the right outlook on keeping up with the wants and needs of the audience.
Should I open a franchise? That’s something only you can answer. At Plaza Pizza®, we can firmly say continuing the legacy of the Plaza Pizza® franchise with two locations in Newark and Heath, Ohio is a decision we are thrilled to have made.
In fact, we love the Plaza Pizza® franchise legacy so much, we’re looking for more franchise owners to bring the flavors that have made Plaza Pizza® so beloved to new pizza lovers beyond our current locations. Is franchising a good idea? With Plaza Pizza®, we can only say yes, and we’d love to show you.
Contact us to learn how to become part of the Plaza Pizza® franchise family!