Pros and Cons of IT Franchising

Pros and Cons of IT Franchising

Is it worth starting an IT franchise business?

The franchising market offers thousands, even dozens of thousands offers to open franchise businesses. Somebody open a barbershop by franchise, someone opens a restaurant or a beauty salon.

However, not many entrepreneurs starting franchise businesses think about the opportunities the online franchise business opens.

Opening your own IT company by franchise, without investments of hundreds of thousands dollars has become real.

Based on the own IT business and franchise services, we are talking about the advantages of opening your own online business.

According to the statistics, 20% of the franchise buyers are happy with their choice and reach success, another 50% work between profitability and zero income, and 30% close their projects within 6 months after the launch.

The goal of this article is to help you to reach that happy 20% franchise buyers who’re enjoying mutual partnership and don’t need to accomplish a wide range of tasks when opening business from the scratch.


What is IT franchise


Actually, franchise consists in transferring the usage rights of the brand with the mutual beneficial partnership between franchiser (franchise seller) and franchisee (franchise buyer).
In offline businesses, it’s opening of the standard trading points (network) under the same brand, with the standard services list etc.

For the online product, franchisee gets the Franchiser branding, website, social networks, standard services list, and sometimes contractors, who’s skills and expertise are verified by the franchiser. In .K.I.S.S. franchise, we are responsible for choosing and attracting efficient employees.
Besides, in franchise cooperation, we ensure lead generation via different advertising channels and complex marketing that allows reaching the break-even level within the first 9-12 months after the franchise opening.

Purchasing IT franchise, you will get the ready profitable business without mistakes, problems, time wasting, nerves and big expenses that occur when opening an IT company from the scratch.



Why IT franchise is better than offline business?

There’s no need to have $100-300 000 of starting capital, or investments from the third parties.


When choosing IT franchise, you avoid that difficult stage of own business opening and reaching the break-even level.

With IT franchise, there are no expenses for staff employees, risks of getting into budget gaps and losses that usually occur when opening the first business from the scratch.

Together with the franchise, you get verified technologies, developers and strategy, corporate education, and within 9-12 months you recover your initial investments.

The risks of financial and temporary losses are minimized.


Flexibility

IT franchise business doesn’t require you and your employees to work in the office, time zones and situation in the world don’t matter, for example, like with the COVID 19 pandemic. Offline sphere was very affected while online businesses grew by at least 50%.


Competitiveness

In case of opening an IT company from the scratch, you need to complete the way from a new company to the popular and respected brand with serious cases and partnerships.

.K.I.S.S. has been working in IT since 2006, and our expertise and trust are proved by cooperation with Mercedes-Benz, Ncrypto, Aeron Pilot, Liberty Bank and other top companies from USA, Europe, Ukraine and other regions of the world.

The range of services includes dozens of positions, and for each solution, we involve developers with 9 years of experience in this field.


What are the prospects of the franchise IT business


According to the research carried out by Future Market Insights, the growth of the world digital market since 2022 will be 6,3% per year.

With the development of technologies, the needs of businesses in IT services are growing, and many companies increase the online presence using IT development to grow their business efficiency.

The acceptance of technologies is also growing, almost any person has a mobile phone or laptop where he can consume the content, order goods and services.

In offline business, the flow of clients is limited due to the impossibility to be present in every point of the world, or even country. 

The information technology franchise opportunities enable to reach the maximum audience, and work with the solvent clients from any country. 


6 factors for the successful franchise choice


  1. Business idea


It’s clear that the business niche you acquire your franchise in, should be attractive for you. However, you should also check if this field is demanded in the services market, if it is growing, and what advantages franchiser has compared to the competitors, what’s his experience in this business, cases and success stories.

For example, since 2006 KISS has been working on the development of the innovative solutions, simple and easy to use. IT field is growing, and we have a lot of successful cases with Mercedes-Benz, Ncrypto, Aeron Pilot, Liberty Bank and many big companies NDA agreement.


  1. Your responsibilities and functionality


The purchase of a franchise means some responsibilities. Obviously, the Franchiser is responsible for the organizational issues, however, sometimes franchisee has a huge amount of complicated tasks, and finally closes the project.

Ask the Franchiser what your responsibility zone and daily tasks will be. The answer will be important when taking the final decision.



  1. Franchiser history in current and previous businesses


We recommend checking the legal entity and the owner of the project. As we have said nobody can be protected from raw franchises and dishonest sellers who have insufficient expertise, sell franchise and practically leave you alone.



  1. Business model and business plan


It’s important to get from the Franchiser a clear plan of development, expenses, profits, break-even level, profitability and other issues.

If something is not clear, or you hear terms like “it depends on the circumstances”, then you need to think twice.

Business is based on numbers and mathematics, everything should clear.


  1. Personal communication with the owner


It is very important to get acquainted with the owner of the project, and understand what kind of person you are going to build long-term relations with. Usually, the acquaintance gives you the understanding if this person is an experienced businessman, or just a tricky beginner.

For example, our CEO attends many meetings with the clients, and directly participates in the business You can book a call and get acquainted with him via the link:


  6. Agreement


There are many tricky things when talking about the business, so before starting the cooperation, request an agreement and send it for approval to your lawyer. It will save you from mistakes and hidden losses.

An important point is the financial responsibility. The timely accomplishment of each IT franchise opening stage and reaching the break-even level should be mentioned in the agreement with our guarantees and financial responsibility.

Besides, you can discuss the business model and business plan with your lawyer, experienced friends and partners. However, remember that you take the final decision!

If you want to get the calculations, deadlines and profits from franchise in IT business, leave your request on this page!

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