Franchisee Advantages & Disadvantages

Written by
Felicia Bugge
3
min read
Business Advice
Growth

Pros and cons of becoming a franchisee at a children’s activity club

Hello, aspiring entrepreneurs and future stars in the kids activity universe! If you're dreaming of running your own business, enriching children's lives through fun and engaging activities, and being part of a larger family of like-minded individuals, franchising might just be the adventure you're looking for. Joining a franchise in the kids activity sector offers a unique blend of independence and support, allowing you to build your dream club with a safety net below. In this blog, we'll navigate the advantages and disadvantages of being a franchisee, ensuring your path forward is as exciting and rewarding as the activities you plan to offer.

[.pink__text]Are you a club owner considering franchising your established club? Have a read of our blog: “Franchising Advantages & Disadvantages for Your Kids Clubs”[.pink__text]

Pros and cons of becoming a franchisee for a children’s activity business

Franchisee Advantage 1: A Proven Business Model

One of the most comforting aspects of joining a franchise is the access to a tried and tested business model. The franchisor has already built a successful business, proving that their business model works which means a lower risk of failure for you! This is your map in uncharted waters, complete with detailed instructions on how to navigate the complexities of the business world. It reduces the guesswork and increases your chances of success, allowing you to focus on what you love – creating memorable experiences for kids.

Franchisee Advantage 2: Brand Recognition

If you’re starting your very own kids’ activity club, you’ll need to put lots of time, effort, and money into marketing your new club to get any bookings. As a franchisee, however, you instantly become part of an established brand. This recognition is a powerful magnet for customers, drawing families to your business because they trust the name above your door. It's like being given a head start in a race, where trust and familiarity are already in place.

Franchisee Advantage 3: Business assistance and advice

Your franchisor has been through what you’re facing before and are happy to support you wherever they can. They’ll understand any challenges you’re facing and can help prepare you with the necessary tools to tackle those challenges. Franchisors provide comprehensive training and ongoing support to ensure you're well-equipped to manage your business. From mastering the art of kids activity scheduling to navigating marketing strategies, you never have to deal with it all alone. This continuous learning environment helps you grow both personally and professionally, ensuring you're always at the top of your game.

Franchisee Advantage 4: Built in customer base

A big challenge that most club owners face when starting out is determining who their customers are. Where do they hang out? How do they speak? What can I offer to make them intrigued enough to pick my club? These are just some of the questions that will need to be answered. Another perk of becoming a franchisee is that these questions will already have been answered for you! As the franchisee, you’ll be stepping into the business with a pre-established customer base.

Franchisee Advantage 5: A new network

Joining a franchise often means becoming part of a larger community of franchisees who share your passion and challenges. This network acts as a think tank, where ideas, experiences, and advice flow freely, providing you with a rich source of innovation and support. Advice is not the only thing you’ll be able to get from networking with other children’s activity business owners. Under the umbrella of the franchise, there could already be pre-established suppliers for the materials you’ll need to run your club. If that’s the case, all franchisees will get their supplies from that business, incurring a lower price from bulk-buying. Plus, if the franchisor has established good relationships with other brands or even schools, you might be able to take advantage of their connections there too! Networking is made easier when you’re a part of something bigger.

Franchisee Advantage 6: Operational Efficiency

Imagine having access to state-of-the-art booking and management software like ClassForKids from day one. Franchises often come with systems that streamline operations, making it easier to manage bookings, communicate with parents, and handle finances. This allows you to spend more time on what matters most – the kids.

[.blue__text]See how ClassForKids can help make your franchise journey organised and simple: Speak to one of our business coaches today![.blue__text]

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Franchisee Disadvantage 1: The Initial Investment

While less than starting from scratch, franchising still requires a significant upfront investment. This fee covers the license to use the brand, training, and sometimes initial marketing. It's important to have a clear understanding of the financial commitment and a plan to manage it. It’s a good idea to weigh up the benefits of being with a known franchise against the initial cost: you may find that the business advice you'll be getting from the franchisor and other franchisees along with the established branding is worth the initial cost!

Franchisee Disadvantage 2: Sharing the Profit

Beyond the initial investment, you'll contribute to the franchise through ongoing fees, which typically include royalties and marketing funds. These payments support the franchisor's continuous training, support, and brand development but mean your profits are shared. How much of the profit your franchisor will get should be outlined in the franchise agreement. It should also be noted that the franchisor is likely to have an overview of your club’s finances as well. Then again, this isn’t necessarily an issue for you if you are open to financial advice from your franchisor.  

Franchisee Disadvantage 3: Limited Control

As an individual club owner, you’ll be in control of everything at your club, from your brand colours and advertising to which class types you’re offering. As a franchisee, however, there will be some restrictions to how much you can control these things. Creativity and innovation are celebrated, but as a franchisee, you must operate within the franchisor's established guidelines. This can sometimes limit how you run your business, from the look of your location to the activities you offer, which might not always align with your personal vision.

Franchisee Disadvantage 4: Linked Fates

Your success is intertwined with the franchisor's brand. While this can be great, it also means any negative press or brand-wide issues can affect your business, regardless of your individual performance or reputation. Remember that your reputation will be linked to the franchisor’s original brand and any other franchisees under that brand.  

Deciding to become a franchisee in the kids activity sector is like setting sail towards a horizon filled with potential and adventure. It offers a unique blend of entrepreneurial independence and supportive partnership. Armed with the right information, a clear understanding of the challenges and benefits, and a dash of courage, you're ready to embark on this exciting journey.

[.green__text]Ready to get organised? See what ClassForKids can do for you: get a free demo of the system today![.green__text]

Felicia Bugge

Felicia is our resident Content Specialist. She is the mastermind behind most of our blogs, emails and Tiktoks! When she isn’t planning the next big email campaign or chasing participants for Tiktoks, she can be found travelling to new exotic places, reading the latest booktok book, or converting friends to using iPads for notes and calendars!