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All You Need To Know About Furniture Franchises

1 November 2022 by Catalina Gomez

Have you considered investing in the furniture business? If you have, a franchise could be an easy way to make a killing in the industry. Below is a piece detailing the benefits of furniture franchises and considerations to make when buying a franchise. 

What are the Benefits of Furniture Franchises? 

One of the challenges when opening a furniture business is creating a brand name. As an investor, you will have numerous questions, such as what to call your brand, the brand colours, trademarks, how to create a brand image and market the brand. Given that you are a new business, you will spend significant cash and time developing your brand compared to marketing and developing products. Therefore, there is a probability that your business could collapse a few months after opening its doors. Conversely, when you buy a franchise, you do not need to worry about branding since the franchisor invests in the company brand. Moreover, they help with other operations, such as the supply of raw materials, staff training, and product development. Therefore, once you purchase the franchise, all you have to worry about is making quality furniture and ensuring excellent customer service at your store. 

You are at lower risk of business failure if you purchase a franchise. Typically, you take advantage of the business support services the franchisor offers. For example, the franchisor could offer products on credit as you start up the business. This support prevents your new business from running too lean during its inception stages. For instance, you could run out of capital if a large company places a huge furniture order. Besides, there is a probability that your business could start earning profits at an early stage. Remember, the franchisor has already invested in advertising and branding. Once you purchase a franchise, customers begin to stream in since they already identify with the brand. 

Considerations When Buying A Furniture Franchise 

There are many furniture franchisors on the market today. Evaluate the background of the different companies to establish their visions, strategic plans, guiding principles, policies and belief systems to determine a right-fit franchisor. For instance, if you believe in empowering your workforce, you might want to work with a company that upholds specific employee policies. Then, examine the contents of the franchise agreement to determine whether it suits your needs. For instance, how much independence do you have as a franchisee? Are there limitations on the amount of inventory you can hold? If the franchisor offers products on credit, do they charge interest? It would also be wise to consult an investment manager to determine the profit margins and return on investment. This way, you are sure about the profitability of your furniture business. 

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