Just like with other ventures, taking out a franchise has its ups and downs. If you think franchising might be the thing for you, first make sure that you know the advantages and disadvantages of going into franchising before investing your hard-earned money.
The biggest advantage of franchising is ease. For people who have minimal knowledge about starting a business may opt to franchise instead because they come in complete packages. For a certain fee, they provide you with materials and the necessary training so you don't have to do it on your own. Also, since the company is already well established, you don't have to start from scratch in terms of reputation and customer base. When you franchise, you are never alone so you can count on your franchisors for help if you encounter problems. Since your success benefits them as well, the franchisors will support you every step of the way.
Franchising has its downsides too. For one, you can never take all of your profits for your own because you need to pay your franchisors a percentage of the revenue. Also, for a budding entrepreneur, franchising may be creatively stifling. In franchising, the business model, products, pricing and other procedures are already given to you and there isn't enough room to put in your own ideas. In a way, you really can't call it your "own" business because the franchisor still controls how you do business and you have to regularly report to them to make sure the development of the franchise you took out is still within their standards.
The biggest advantage of franchising is ease. For people who have minimal knowledge about starting a business may opt to franchise instead because they come in complete packages. For a certain fee, they provide you with materials and the necessary training so you don't have to do it on your own. Also, since the company is already well established, you don't have to start from scratch in terms of reputation and customer base. When you franchise, you are never alone so you can count on your franchisors for help if you encounter problems. Since your success benefits them as well, the franchisors will support you every step of the way.
Franchising has its downsides too. For one, you can never take all of your profits for your own because you need to pay your franchisors a percentage of the revenue. Also, for a budding entrepreneur, franchising may be creatively stifling. In franchising, the business model, products, pricing and other procedures are already given to you and there isn't enough room to put in your own ideas. In a way, you really can't call it your "own" business because the franchisor still controls how you do business and you have to regularly report to them to make sure the development of the franchise you took out is still within their standards.
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