PROS AND CONS OF OWNING A FRANCHISE BUSINESS
Franchise business has been a trend for the recent years, and we could not agree any better than it has been bringing success to business starters. If you are thinking of being in the same field as well, I suggest that you read this article so that you could somehow have the idea of what are the pros and cons of buying and having a franchise business.
As a franchise owner, you are in control of your business, and you could be assured that someone bigger (a franchisor company) will always get your back. Through the support system given by the company, you could be sure that aside from doing the actual business, you could learn from the more prominent company.
The experience could come later. It means that you won’t have to undergo thorough preparation for you to be able to manage your business. Since the company would be the one to provide you with the necessary training which you will need in running the business.
Statistically speaking, owning a franchise has a higher success rate than those that are considered as a start-up business. This may be because the company is already well-known and there are already previous clients of the firm or the brand. Moreover, the franchise holder can quickly benefit from the experience of the franchisor which he would employ especially in operations.
Owning a franchise costs less than starting a new one. In short, it is more financially and economically wise to invest in a franchise business than starting one. The reason for this is that you can avoid the trial and error phase which is very costly and sometimes would even be the cause of business failure.
Since franchise companies have already established name when it comes to the public and the industry, it would be easy for you to introduce the business to the market. There would be someone to be in charge of promotion, advertisements, and the likes, and you won’t have to be continually worried about this little stuff because the company would do it for you.
As for the technical matters, there would be an agreement with the franchisor. This will make most of the time entails contracts and terms and conditions to follow.
If you are up to significant changes or innovations on your own, franchise business may not be the one for you since this kind of business entails following a given standard which you have to follow.
You will in a way be restricted about the details of the franchise, like what will be the products to sell, where will you build your business and the likes. The franchisor will give these based on their strategic planning and experience.
It’s a pack one, pack all situation. If one franchise branch gets the negative remark, you also get the same since you are just under one branch or company.
In the franchising world, you will have to accept the fact that for as long as your business is running, you will have to share your profit to the franchisor since they are letting you use their brand and their company.
After every term, there is no need for you to renew the agreement that you has at the beginning of the franchising business.
Remember that being a franchiser may seem to be easy to manage. In actuality, there is no such thing as “comfortable” in the world of business, the only way for you to feel relaxed about it is when you have given your best, and you consistently worked hard to achieve your business goals. If the franchise doesn’t seem to work for you, you may also consider purchasing an existing business and taking over at the management. If you are more daring and more of a risk-taker, then you may even begin creating your own business.