Written by Efranchisesale Staff Tuesday, 18 January 2011 18:10
If you have been thinking about starting a franchise business, then you may have already thought about some of the pros and cons of this business model. While franchises make the start-up experience much easier, franchisees also lack control over many aspects of their business. Before you choose a franchise or sign any paperwork, it makes sense to look at the benefits and disadvantages of buying a franchise.
Here are some of the benefits of buying a franchise:
- You get to be your own boss – at least to some extent – and create your own success story
- Compared to a normal start-up, franchise businesses have already done the hard work for you. They’ve conducted market research, developed a business plan, perfected the product or service and made it into a well known brand.
- You get the benefit of franchisee support services, such as on-site training, site selection, lease negotiation and corporate advertising.
- You gain a profit from the instant name recognition a franchise affords.
Here are some of the disadvantages of buying a franchise:
- You will need to play by their rules. Unlike your own start-up company, when you own a franchise you cannot just “do as you please”. You must adhere to the reporting procedures, product line, dress codes, hours and business concepts developed by the franchisor.
- In addition to start-up fees, you will need to pay a percentage of your monthly gross sales to the parent company.
- If you are looking to truly “be your own boss” by starting a business, franchise ownership may be too restricting for you.
You may want to develop your own, personalized list of the benefits and disadvantages of buying a franchise. Seeing these pros and cons on paper should be enough to help you decide if franchising is for you.