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Why Choose An Air-Scent Business Over A Franchise?
Every savvy business entrepreneur, no matter what the industry, must understand the differences between starting up and owning your owning business, and investing in a franchise before moving ahead with a decision that could affect your financial future.
Many people get confused when comparing a start up business to a franchise investment. On the surface they may seem similar, but they are as different as day and night.
By the end of this article you’ll see exactly why an Air-Scent distributorship is more financially advantageous than most business opportunities, and how it makes ten times more sense than the often onerous and risky terms that come with committing to a franchise license.
First, Why Is An Air Freshener Business A Great Opportunity?
Before we get into the difference, lets first take a look at the air care business.
The global fragrance market is constantly evolving and by the year, 2024, is estimated to glean about USD $92 billion.
To further substantiate this industry’s worth and development, a recent study conducted by Salon concluded that a floral scent lingering above gamblers in a casino resulted in a 45% increase in time spent playing the games.
We’ve written extensively about the financial benefits of scent marketing, within which we referenced a survey conducted by the International Journal of Marketing. The survey included responses from four hundred consumers concluded that a pleasant ambient scent introduced into Nike shoe stores improved their evaluation not only of the store and its products, but the likelihood they would shop there again.
What Exactly Is A Franchise?
Simply defined, a franchise is a means to expand a business by distributing goods and services via a licensing relationship.
In franchising, the company that grants the license to a third party for conducting business under their trademark not only specifies the products and services that will be offered, but also provides them with an operating system, brand and support.
There are two different types of franchising relationships, but Business Format Franchising is the most recognizable to the average entrepreneur.
In a business format franchise, while the product is important, it is the system of delivery used by the franchisee to the public that is really the principal element in the relationship. The entrepreneur receives an entire operating system from which to work within. This includes: site selection and development support, operating manuals, training, brand standards, quality control, a marketing strategy and business advisory support.
To date, more than 120 diverse industries use franchising as their route services including: beverages; cleaning and janitorial; retail products and services; food chains; health and fitness and senior care and medicals services, just to name a few.
The other classification of a franchise is the traditional or product distribution model. This format usually accrues more in total sales than business format franchising. In a traditional franchise, the focus is on the products manufactured or supplied by the franchisor. In most instances, the manufactured products will require both pre-and post-sale services. This type of franchise is often found in the automotive, bottling and gasoline industries.
At its core, franchising is about the franchisor’s brand value and the relationship between the franchiser and franchisees. Consumers can be disconnected from a business if their brand expectations are not met. Franchisees must live up to the company’s brand standards to ensure consumer satisfaction.
How Does A Business Startup Differ From a Franchise?
There are regulatory and relationship differences between the two. Regulatory refers to the fact that a franchise is required by the Federal Trade Commission to offer a Disclosure Document to all prospective buyers.
This document contains twenty-three specific points that explain all of the costs, what they get for their investment and thoroughly defines the relationship. Some of the better startups offer an equivalent to this document, but they are not required by law to do so.
Another major difference between the two modes of operation concerns the degree of the relationship with the specific product or service that is being delivered. In a startup, the entrepreneur is usually not identified as part of the brand, as the products or services offered are the primary consideration.
He or she does not use the company name or logo in identifying the product, but not because it isn’t important. It is rather because the system of delivery to the public is the principal element in successful operations.
In a franchise format, it is the total opposite. The franchisee and franchiser’s brand are always one and the same. Training, marketing and support may or may not be provided in the case of a startup, as they are incidental to the main relationship, but franchisees do generally receive these three elements on an ongoing basis. They also require the payment of on-going support and advertising royalties for as long as they run the franchise. In the case of a owner’s startup, there are neither royalty payments nor continual support.
Other differences between two formats concern exclusivity, initial fees, territory and royalty fees. Franchises offer products or services that cannot be found anywhere else under another brand name and franchisees must meet the standards required by that brand. With Air-Scent, the operator may handle a variety of products and services.
Initial franchise fees can be hefty, but with an Air-Scent business they are very low. Franchisees also pay continual or royalty fees, which are based on their gross sales of products and services, and with Air-Scent, there is only the cost of the products.
Learn more about how to become an Air-Scent distributor.
Pros And Cons Of Starting Your Own Business Or Franchise
An Air-Scent business is often a safe alternative for home-based, part-time or second income businesses. One of its most significant advantages over a franchise is that for the entrepreneur there is more flexibility in conducting business at a lower entry cost and without royalty payments or territorial limitations.
Entrepreneurs who start their own business are, for all intents and purposes, in business for themselves with no backup from a mother company, which can in the long run, be either positive or negative.
On the other hand, a popular franchise phrase claims: “in a franchise, one is in business for themselves, but not by themselves.”
Probably the most significant drawback of certain startups concern the fact that a typical business owner does not receive any management system training, ongoing support, territory or marketing.
Relevant Statistics And Studies
In a 2014 survey on the relationship between franchiser and franchisee that was conducted by the Franchise Business Review, it was determined that: 90% of participants enjoyed operating their business; 85% felt positive about their affiliation with their franchisor; 73% said they would “Do it all again” if they had the option and 78% claimed they would recommend their franchise brand to others.
Why Consider An Air Scent Business?
Of all the many opportunities out there, there are some that are better than others for a myriad of reasons.
Any entrepreneur seeking a solid business opportunity should start by researching and finding a company that represents both the safest investment of time and money and the most potential for financial return. This is no easy task, but it is the most important first step any entrepreneur should take.
The first focus involves narrowing potential options by focusing on those companies that have a long and continuous period of operation, as they are the most likely to offer stability and a satisfied customer base.
Air-Scent, world masters in scent marketing and ambient air care, has been a leading force within the commercial air freshener industry for more than seventy years and we stand behind all of our products and all of the people who sell them. Our proven track record and enduring reputation makes a business connection with them one of low risk.
The demand for commercial air fresheners and scent delivery systems utilizing far air dispensers is growing every day, making it a viable home-based business for men and women of any age and from any country in the world. Lucrative prospects lie within existing or potential distributorships and route service operations.
7 Advantages Starting An Air-Scent Biz Has Over A Franchise
We offer seven distinct advantages over its competitors when it comes to starting up an air freshener service company. They are as follows:
- There is no territorial fee – With Air-Scent there are no initial entry fees. In the case of many franchises, these costs can be very high ranging from $10,000 on up.
- The entrepreneur virtually breaks even at the start – There is a low cost for equipment investment, but it can be easily reimbursed upon securing a equipment deposit or installation fee from from each customer to cover the outlay. Most entrepreneurs already have a working customer base to tap into, and once this cost is covered, an Air-Scent business is essentially the lowest possible startup cost for any type of venture, promising potential high profit and quick returns on investment. Succinctly, what makes this a low risk entry is the fact you can recoup your product costs by charging an installation fee as well as the first service fee, which not only covers your outlay but provides a handsome profit.
- There are no royalty fees for Air-Scent’s products – The earnings of franchisees are carefully monitored and they must pay a continual royalty fee either every month or every year, which is based on their gross sales of products and services. With Air-Scent, the only cost is for the actual products supplied by Air-Scent to the business operator.
- There is no middle man with Air-Scent – In any business venture under the sun, a middleman may serve as an added layer within a sales structure and is usually someone who absorbs an additional percentage of a company’s total revenue. Eliminating this step is a win-win monetarily for both the seller and the buyer. By eliminating the middleman and his necessary markups, the smart entrepreneur can offer his or her customer base lower pricing and also glean higher personal profits.
- Franchises force you to grow or lose the franchise – Franchisors will not tolerate failure or slow sales for very long. A bad patch, which can be due to any number of factors that are not the fault of the franchisee (lack of business, poor location choice, economic slumps or acts of God), can happen to anyone. However, they can still be the downfall of the sincerest of franchisees. With Air-Scent, you have the space to grow your own pace.
- A franchisee is mandated to purchase approved products – Franchisees have no flexibility when it comes to pricing standards, they are always stipulated by that brand and they must conform to set requirements and suppliers. With Air-Scent, the entrepreneur is not restricted to mandated prices and/or products, and they are free to handle a variety of items and services.
- The franchisee cannot sell the business without the franchisor’s blessing – Binding contracts and entangling stipulations can hinder a franchisee from selling a business when he or she might want to branch out on their own or retire. This can greatly limit return on investment. With Air-Scent, however, there are no such limitations.
Both franchises and an Air-Scent business can be excellent venues for launching lucrative and rewarding profession. Air-Scent offers many ways for providing the most freedom and avenues to shine over franchises.
Opportunities of all kinds present themselves and all must be examined thoroughly. Entrepreneurs must do their homework and explore all of their options carefully.
Contact us today and get started tomorrow!
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