After years of hard work, you have decided to make your dreams of owning a campground a reality. Before you start your business, however, you will need to ask yourself whether you plan on operating independently or as a franchise. While the correct answer will vary depending on your business’s specific needs, hospitality franchise opportunities offer numerous benefits to help you make the most out of your campground.
Advantages of Franchising in the Hospitality Industry
As a franchisee, you will pay a fee for the rights to use the franchisor’s brand and marketing and royalties. Franchisees also have access to numerous benefits.
Be Your Own Boss
When starting a franchise, you get to be your own boss with the added benefit of support from the franchisor. Operating as a franchise provides the benefit of creating an independent business with a lower risk.
Built-In Customer Base
Operating as a franchise allows you to start your business with instant brand recognition and gain access to a loyal customer base. Even if you are opening the first branch of your franchise in a small town, residents are likely already familiar with the brand from exposure to media and travel.
Starting any business is risky regardless if you are operating independently or as a franchise. However, operating as a franchise poses fewer risks because you can access successful business models. The reduced risk also can make it easier for you to get loans to help launch your business.
Generally, franchises have higher profits than independent businesses because they are already familiar to customers. This popularity results in higher profits and greater returns on investments for franchisees.
If you operate independently and need to order products, you will pay more per item because your orders are so small. However, a network of franchises can purchase goods at steep discounts due to bulk ordering. The parent company can use the franchise’s size to find deals that benefit every business in the franchise for lower operational costs overall.
Lower Failure Rate
Franchises generally have lower failure rates than independent businesses. When a franchisee joins a franchise, they enter a partnership with a successful brand and gain access to a comprehensive support network. Franchises have already proven their business concepts, so you can rest assured the products or service you are offering has a demand.
When creating a new business, it takes time to develop customer relationships and your brand identity. Franchises, however, are already familiar to the public. Starting with recognizable branding enables people to already know your business and establish expectations.
Depending on the terms of the franchise agreement and the business structure, the franchisee may receive a turnkey business operation. The franchiser will supply everything the franchisee needs to operate their business, such as equipment, supplies and advertising.
Franchise With Kampgrounds of America, Inc.
Franchising with KOA opens up your campground to significant growth opportunities. KOA offers an extensive network of advice and access to funding and marketing resources. Request more information today to transform your campground!