It is quite likely that having decided to start your own business you might consider a franchise. A franchise is basically the sharing of a business idea; you will be buying the right to use the name of an already established business, that is familiar to many people. The person selling the opportunity is known as the franchiser and you will be known as the franchisee. Examples of popular franchises are Kentucky Fried Chicken (KFC) and MacDonald’s. A franchise opportunity will have its pros and cons.
ADVANTAGES
- You will be acquiring a product that is already tried and tested.
- You will likely be given help with staff training.
- You won’t have to worry about stock as the franchiser usually supplies stock.
- You are given business advice to help you, such as that of location choice, staffing hours and regulations, advertising and promotion.
- It is easier for you to acquire finance. Banks will feel more secure loaning money to undertake a venture that has already acquired a status in the market place
DISADVANTAGES
- The franchiser has the real control; you do not have as much autonomy. You probably at some point have patronized or entered a franchise, or maybe quite a few, have you noticed that there is a large similarity in the products offered and also the look of the organization? That is because things are pretty much prescribed for each of these ventures
- Franchise ventures are usually very expensive and after paying a hefty price to acquire a franchise you will still have to pay a levy on sales or profit to the franchiser
- You will not have much flexibility since pretty much everything is chosen for you. You must use the franchiser’s name, stock and follow business practices laid down by them
Having said that, franchises can be quite lucrative ventures; most are expensive but depending on your area of interest you might find a franchise to suit your needs.
If you decide to buy a franchise, it is advisable that you seek the advice of an experienced lawyer who is familiar with franchise agreements. Make sure that you understand the terms of the agreement before you sign.
Great post! I agree that franchises are not for everyone, but for the ones that would love to go into a business that they are interested in, this could be a great investment, especially if the franchise offers more pros than cons. Thanks for sharing!
This is really interesting, You are a very skilled blogger.
I’ve joined your rss feed and look forward to seeking more of your fantastic post.
Also, I have shared your site in my social networks!
Wonderful blog! I found it while browsing on Yahoo News. Do you have any
tips on how to get listed in Yahoo News? I’ve been trying for a while but I never
seem to get there! Thanks
You’re welcome 🙂 Come back anytime!
Amazing! Its actually awesome piece of writing, I have
got much clear idea concerning from this post.
Thank you Ig. Do continue to visit 🙂
There is definately a great deal to know about this subject. I love all the points you made.
Hi Mitch,
I am glad you found the information useful 🙂
Howdy! Would you mind if I share your blog with my zynga group? There’s a lot of people that I think would really enjoy your content. Please let me know. Cheers