{"id":14177,"date":"2014-12-15T04:27:06","date_gmt":"2014-12-15T04:27:06","guid":{"rendered":"https:\/\/www.thefranchiseking.com\/?p=14177"},"modified":"2022-02-20T17:10:30","modified_gmt":"2022-02-20T22:10:30","slug":"franchise-ownership-pros-cons","status":"publish","type":"post","link":"https:\/\/www.thefranchiseking.com\/franchise-ownership-pros-cons","title":{"rendered":"The Pros And Cons Of Buying And Owning A Franchise Business"},"content":{"rendered":"

\"pros<\/a><\/p>\n

In this post on the pros and cons of owning a franchise business<\/strong>, I’m going to go over the things you need to know about franchising, so you can make a smart decision on becoming you’re own boss. Let’s begin!<\/p>\n

For starters, there’s no question that the decision to become the owner of a franchise is a big one<\/strong><\/a>.<\/p>\n

Franchise ownership<\/strong> can be very, very rewarding. But there are pros and cons to doing so.<\/p>\n

That said, know this: The franchise business model is a powerful one. But it’s not perfect.<\/p>\n

That\u2019s why I suggest you ignore some of the more common sayings in franchising<\/strong><\/a>.<\/p>\n

Like these:
\n\u201cYou\u2019re buying a \u2018business in a box\u2019 when you buy into a franchise<\/em>.\u201d
\nOr
\n\u201cOwning a franchise means that everything is all set-up for you. You just need to follow the system<\/em>.\u201d
\nOr
\n\u201cFranchisors provide all the support you\u2019ll need to be successful<\/em>.\u201d
\nOr
\n\u201cBuying a franchise…becoming a franchisee, is much less riskier than starting your own business<\/em>.\u201d
\nEtc.<\/p>\n

Please. Ignore. Those. Sayings.<\/p>\n

Especially ones that have to do with franchise risk<\/strong><\/a>.<\/p>\n

That being said, let’s go into the pros and cons of owning a franchise, so you can make a smart, educated<\/a><\/strong> decision on buying a franchise.<\/p>\n

What Are The Pros And Cons Of Buying A Franchise<\/h2>\n

As good as it is, the business model<\/strong><\/a> of franchising is not for everybody. There are even some franchises-like E-Cig franchises<\/strong><\/a>, that aren’t for everybody. Franchise business ownership certainly has its pros and cons.<\/p>\n

If you\u2019re seriously considering owning a franchise, the pros need<\/em> to outweigh the cons in order for you to buy into a franchise.<\/p>\n

Tip:<\/strong> Please remember that you are investing in someone else\u2019s system-someone else\u2019s ideas. The words you need to focus on here; \u201csomeone else\u2019s<\/em>.\u201d<\/p>\n

With that in mind, it\u2019s time for me to show you several pros and cons of franchises.<\/p>\n

Pros Of Franchise Ownership<\/h2>\n

Systems<\/strong><\/p>\n

There are business systems in place for you to use. Lots of them. They include things like computer systems, marketing systems, operating systems and more. A franchisors\u2019 business system (s<\/em>) is the heart and soul of their business. Respect it and use it. That\u2019s what you\u2019re paying for upfront as part of the franchise fee.<\/p>\n

Training<\/strong><\/p>\n

\"training<\/a><\/p>\n

You\u2019ll be provided with a formal training program soon after you sign your franchise agreement. Some of your training may come in the form of online modules. Some franchisors have you jump onto their Extranet so you can start learning about the business before you attend a formal training class at franchise headquarters. Call it pre-training. It’s a great way to get into the groove before you fly out to headquarters.<\/p>\n

Technology<\/strong><\/p>\n

\"technology<\/a><\/p>\n

Technology budgets in franchising have grown over the years. As a franchisee, you\u2019ll benefit greatly from the technology that franchisors have in place these days<\/strong><\/a>. Some of this technology is designed to help you manage your customers. Some of it will help you with things like accounting and payroll. Would you like to know how good a franchisors technology is? Before you move forward with buying a franchise, talk to the franchisees. They\u2019re using it every day. Believe me\u2026they\u2019ll tell you if it\u2019s good-or not so good.<\/p>\n

Marketing\/Advertising<\/strong><\/p>\n

Franchisors have marketing plans and advertising templates all ready to go for you. Having those at your disposal can really help you get your name out quickly. Speaking of getting your name out…<\/p>\n

Grand Openings:<\/strong> A lot of franchisors put a lot of energy towards your official grand opening. You should to. You’ll never have another grand opening of your franchise business. Take advantage of everything they have to offer. Take advantage of what buying a franchise can<\/em> offer<\/strong>.<\/p>\n

Marketing your business is an everyday affair. Today’s franchisors have access to companies and tools that can-and do<\/em> help your franchise business stay top of mind in your local area. in addition, there’s power in numbers when it comes to advertising. 150 franchisees can secure cheaper advertising rates than one single franchise owner…or independent business owner. That’s huge!<\/p>\n

Ongoing Support<\/strong><\/p>\n

\"support<\/a><\/p>\n

For the most part, franchisors have terrific ongoing support systems in place. From in-house personnel that man the phones and the central computer systems, to field reps that make in-person support visits, franchise support<\/strong><\/a>-great franchise support-can’t be beat when it comes to keeping your business up and running.<\/p>\n

Tip:<\/strong> Don’t be shy when you have an issue. Reach out for support. You’re paying for it.<\/p>\n

Real Estate Resources<\/strong><\/p>\n

\"open<\/a><\/p>\n

Franchisors tend to have the resources…real estate-wise, needed to help you secure a great location for your franchise business. Some franchisors have formal in-house real estate departments. Others have connections with national commercial real estate companies<\/strong><\/a>. Either way, know this: The importance of getting a great location for your franchise business goes both ways. In other words, it’s equally important for the franchisor and the franchisee to secure a great location. The more money a franchisee makes-the more money the franchisor makes in the form of royalties<\/strong><\/a>. It’s a win-win.<\/p>\n

Franchising: A Franchisee Network<\/strong><\/p>\n

There are other franchise owners who, like you, invested in the opportunity. They have experienced things from the front line, and can help you out with problems that may arise. As a matter of fact, the franchisee network is so important, that if I was authoring the franchise operations manual, I would highlight the fact that there is<\/em> a network of like-minded franchisees ready and willing (for the most<\/em>) to assist you. They\u2019re the ones with the answers. They\u2019re the ones who have probably experienced the issues that you\u2019re just beginning to experience. Don’t be shy. Reach out to fellow franchisees and ask them for help and ideas when needed.<\/p>\n

That said, I encourage you to watch this short video about using franchisees as a resource.
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