Friday, August 01, 2014
   
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Buying a Franchise: Benefits and Disadvantages

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:

  1. You get to be your own boss – at least to some extent – and create your own success story
  2. 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. 
  3. You get the benefit of franchisee support services, such as on-site training, site selection, lease negotiation and corporate advertising.
  4. You gain a profit from the instant name recognition a franchise affords.

Here are some of the disadvantages of buying a franchise:

  1. 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. 
  2. In addition to start-up fees, you will need to pay a percentage of your monthly gross sales to the parent company.
  3. 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. 

For more information on the benefits of buying a franchise business, and a complete list of franchise opportunities, visit EFranchiseSale.com

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