When most people think of a franchise business, they automatically think of global franchises such as Subway or McDonald’s. These are “brick and mortar” franchises, meaning that the franchisee buys an actual shop or restaurant. But there are online franchises such as My Destination, a provider of local-based travel information, that are run entirely online. Internet-based franchises have distinct challenges, but also a range of advantages, which explains why many start-ups and entrepreneurs are becoming online franchisees and buying into the business.
The biggest advantage of an online franchise business is low overhead costs. The expenses of a traditional franchise business include buying commercial space, such as a retail shop or restaurant, and décor, paying building maintenance costs, and managing staff payroll. An online franchise is much cheaper to buy and run – all you really buy is a domain name and website. This means you can spend the rest of your budget on other key areas like marketing, advertising, and web development.
Another advantage of an online franchise is that the ‘online shop’ is effectively open all day; revenue can be generated 24 hours a day, seven days a week. Also, an internet-based business is accessible by anyone, anywhere, reaching customers around the globe. Unlike conventional franchises, online businesses aren’t restricted by physical location or traditional hours of operation.
A significant benefit of running an online franchise is the ability to easily implement change across the franchise. Instead of re-branding or changing protocol across dozens or even hundreds of physical locations, online franchises can make overhauling changes or tiny tweaks throughout the whole business with minimum effort.
For instance, My Destination launched a new mobile platform and wanted to promote it across all its destination sites. One small update to its hub site automatically rolled out across all of its franchise sites. Compare the ease of this change to one that McDonald’s as a franchisor would need to make. A decision to change the décor in its restaurants would require a huge logistical plan and an even larger budget.
Running an online franchise offers a business a highly-supported network of franchisees with significantly reduced costs. The low initial investment and other advantages attract new franchisees daily, making online franchises a trend that will continue to grow in popularity.
My Destination is an online network of locally based travel information sites, covering over 100 destinations around the globe.
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