Putting up our very own company or business requires so much time and effort. Building your own company from scratch is hard; so many people go for franchising instead. Franchising a business has its own benefits and drawbacks.
Benefits of a Franchise
Less Start-Up Problem.
A franchise is defined to be a turn-key business. When you franchise a business, the owner will be responsible for all of your marketing strategies and logo. Your products and suppliers are already defined, with pricing already in place. Franchises normally have a software package for product sales and data processing.
Training and Support.
Most franchises require you to fly to their corporate headquarters for a few weeks of training on all aspects of the company. Youll learn about everything from product preparation to bookkeeping practices. If youre a novice to the business world or lack a business record, a franchise is actually a good fit.
Brand recognition.
Whenever you join a franchise, youre registering with a business that is already firmly established in the market. Youll reduce costs time and expense convincing customers that your product is great-they undoubtedly recognize the brand.
Fast Turnaround.
If youre chomping at the bit to start your brand-new store, a franchise could be the solution. Because franchises offer you all the tools you may need for your organization, you can open far more quickly than if you had to figure it all out on your own.
Disadvantages of a Franchise
Numerous rules.
Firms that offer franchises set up typical practices for their business, and they expect you to closely follow a strict set of guidelines. If you dont like the thought of somebody else dictating the way your company runs, a franchise is not for you.
Price.
Fees vary extensively, but you should intend on investing in the brand recognition and groundwork that youre getting when you buy into a franchise. Most franchises call for an initial start-up fee. Soon after, youll assume responsibility to pay the franchise a percentage of your sales. If youre ready to pay fees and royalties for the convenience, a franchise is a great move. However, if you wish to start your business on a shoestring, franchises arent for you.
The franchise determines the culture.
Each and every business has a certain personality-and a particular set of company ideals. Before signing on with a franchise, be sure that your values and personality get in line with the companys-otherwise you may find yourself feeling stifled or upset.
Their very own status is your standing.
This can work either way. You will get brand recognition with a franchise, but this can actually turn towards you if the business makes national statements for shady business procedures. Even when you might not be directly involved, their brand is on your own door.