A franchise business can be a brilliant approach to start your business considering its already-systematic setup as well as the well-known name, brand, products & services of that business. However, it is essential to bear in mind about the pros and cons of this business to better navigate your investment. We hope that the following analysis might help to accomplish your perspective:
Advantages
- Linked with a good brand, reputation, product or service
- Help with leasing, site development, shop fit out and initial training
- Ongoing support with advertising, operating procedures, and stock control
- Access to financial systems
Advantages
- Can be more expensive to buy than other types of businesses
- Restrictions on where you operate, what you sell and suppliers you use
- Bad performance by other franchisees may affect your franchise’s reputation
- Paying ongoing fees and profits to franchisor
- Franchisor not obliged to renew contract
You should acknowledge about these key drawbacks of a franchise business to find a good approach and limit risks or loss on your investments.
