Every year hundreds of thousands of people think about owning their very own business after years of being employed by someone else and the biggest disadvantage most people have is that they are not as in touch with the business world as they would like to be. A franchise could take away some of the obvious hurdles but not all of them and here’s the lowdown on starting a business with a franchise.
1.Statistically, franchises are successful.
The biggest factor in reasoning the success rate of a franchised start-up is because a franchise is a business strategy that has been tested many times and has shown to be successful. Most businesses that simply spawn in the minds of an individual are not tested and usually fail.
2.A franchise offers help instantaneously.
When someone chooses to start their own business there are usually a lot of question marks floating overhead. Starting a business, with little or no experience requires lots of research but with a franchise Ã¢Â?Â¦ everything is in place. Equipment, training, required paperwork and even marketing is already covered. A national name is marketed everyday and advertising costs are virtually nonexistent when you opt to partner up with a franchise.
3.Stock prices are invaluable.
Try starting a food business on your own and looking for vendors to provide your food, the costs are outrageous but a franchise has established providers that come along with those extra perks of low costs.
Those are the biggest advantages and the ones that most people need to consider but what about the disadvantages, weighing them out will give most the answers they need.
1.There are rules to follow.
Unlike independently owning a business, a franchise has rules and those rules must be followed. If total control is something desired, it will not be achieved with a franchise. Certain standards are a must and following a franchises decision on where to place displays; napkin holders or anything that pertains to the business Ã¢Â?Â¦ even cleaning standards must be adhered.
2.Help can and will end.
Although a franchise may offer some stability in the beginning helping you get off the ground, that net will soon end because a franchise will only help to a certain degree. Even some that promise any ongoing assistance rarely follow-up on it and running the business will be entirely up to the owner.
3.The cost is expensive.
Although there are perks to going into business with a franchise, there is an up front fee with most. Usually the fee exceeds thousands and most often more money than it would cost for someone to open up a business on their own.
4.Other franchise fees.
Even though one may think that once they have paid the initial ‘franchise fee’, that’s not the end. Considering all the fees such as royalties is a big factor and basically it’s up to the business owner to know what’s being charged, when it’s being charged and why, research is still required to know.
There are other franchises that are smaller operations that do not require as much red tape as a popular, proven franchise would but there’s still reason to beware. Most of the smaller franchise opportunities are not tested or proven to be anything, successful or failures and there’s no way to ‘know’ as much about a successful beginning with them as there is with an established franchise.
Anyone considering opening some sort of a business needs to know all of the possibilities to reduce the risk. A franchise for some could be a good alternative for some while it may not be for others, either way now you know the difference.