What Are the Advantages and Disadvantages of Becoming a Franchisee?

• Michael
• Buyers/Become A Business Owner

What are the advantages of becoming a franchisee?

• Your services and products will already be known to your potential customers because you are becoming a part of an already established brand.
• Your systems and methods of operation have already been proven by the success of the franchisor and previous franchisees.
• You will not only get training for yourself and your staff from the franchisor, you will also receive ongoing support from the parent company.
• You will have an exclusive territory of operation guaranteed by the franchisor.
• You have the advantage of buying into an already successful system.  There will be less risk of failure in the first six months of operation, like there might be in a start-up business, because the business and its products have already been proven.

What are some possible disadvantages to becoming a franchisee?

•  You will have to pay royalty fees for the duration of your franchise agreement.
• You will be asked to comply with the system that was created by the parent company.  While this is typically not a problem, it does mean a bit less freedom in terms of system design.
• You will not be able to have the creative license to generate your own logos and trademarks, as they already exist.

Entering into entrepreneurship by becoming a franchisee can be a great option for those who desire to be their own boss.  If this is an option for you, be sure to cover all of the bases with your research into the potential franchise.  Use your previous experience and practical knowledge when you decide what type of franchise would be right for you.  Always consider the advantages and disadvantages prior to making any business purchase decisions.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

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