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Published by on Wednesday, September 4, 2013 at 9:55:00 AM

Pros and Cons of Franchising

Pros and Cons of FranchisingInvesting in a franchise can often be a lucrative way to go into business for yourself. Starting your own business is always a risky proposition, but with a franchise, you are not only investing in a known commodity, but also a business that has its core structure already set. It is often much less risky to invest in a franchise, particularly if you have prior experience in the industry and have a passion for the subject matter of the business. Here are some pros and cons for you to consider when investing in a franchise.

Brand Awareness. It is always easier to get a business off of the ground when your target customer recognizes the brand. You are more likely to attract a strong customer base up front if you invest in a franchise whose brand is not only know, but trusted. Importantly, you should also consider that you don't have complete control over the brand. If another franchisee has an issue, it can spillover into your business because you share a brand name. Make sure you do your due diligence to insure that the franchiser shares your core goals and business philosophies.

Operations. When you decide to operate a franchise, you will have to day to day control over the operations of your business, such as choosing your employees and the environment you want to create for your staff. Importantly, however, you will have to sign an agreement where you agree to follow the franchiser's rules. This means you will not have as much autonomy about how you operate your business as you would if you were starting your own business. For example, you may only be permitted to offer a set product or service. You may also be limited in what other businesses you run outside of the franchise. These rules can also be a great benefit to you because you will not have to start from scratch. All of the operations will be set and likely tested for success. You just need to implement them.

Marketing. As a franchisee, you will likely have to contribute to a marketing and advertising budget. Although these costs may be higher than what you would expect to pay as a small start-up business, if you are investing in a powerful brand such as McDonald's or Subway, you will be backed by powerful advertising strategies that you could never afford as a small local business. You will also receive advertising and marketing materials from the franchiser that are likely of much higher quality than you could afford as a new start-up business.

Support. As a franchisee, you will be able to take advantage of both franchiser and peer support. A franchiser will often provide training, relationships with suppliers, assistance in choosing a location and legal help. Some franchisers provide formal training programs designed to set you up for success, such as classes about operations, hiring and electronic systems, You can also tap into your peer network by brainstorming with other franchise owner's about issues that may arise. It always helps to have a sounding board when attempting to launch a new business.

A franchise is a great way to take the leap into being your own boss. Consider all of the pros and cons before investing and good luck!

Andrew Ewing is a professional blogger that shares tips and advice about franchising topics. He writes for, a leading franchise directory.
Published by IzajAhmed Shaikh.
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I am, Mr. IzajAhmed Shaikh, Computer Professional, and Pro. Blogger, who belongs to Shahabad, Karnataka India. My basic Qualifications are B.Sc., and M.C.M. done from University of Pune, formerly known as, Poona University, also like to write articles based on my personal experiences.