Reasons Why You Should (or Shouldn’t) Buy a Franchise
Are you thinking about buying a franchise? Chances that if you’ve ever thought about owning your own business, you’ve thought about how nice it would be to own a McDonalds or Cold Stone Creamery franchise once or twice. Wouldn’t it be nice to own a business that has a built in customer base and a corporate advertising program where all you have to do was to go into work and watch the cash roll in. Unfortunately, it’s not quite that simple. Any person can buy a franchise, but franchise ownership isn’t for everyone. You might consider owning a franchise if:
You Want To Work For Yourself
Owning a franchise means that you’ll never have to worry about finding another job. Of course, you’ll still have to answer to your franchisor in terms of both how you run your business, but at the end of the day, you won’t have to find another job.
You Like Hard Work
While franchises are ultimately a turnkey business model that has been demonstrated to work successfully, yours will only achieve that level of success if you are willing to work hard for it.
You Have a Lower Risk Threshold If you are considering starting a business, franchises do offer some substantive benefits over stating a business from scratch. Using a well established brand and getting support from other business owners in the franchise as well as the franchise owners is invaluable in the business world. You also get established supplier relationships that offer the best pricing and credit terms and many other benefits.
However, all of these benefits come at a cost
Buying Franchises is Expensive
Owning your own business is expensive, but buying a franchise is more so, at least initially. There are a number of costs associated with buying a franchise that can run you well into the hundreds of thousands of dollars, depending on the franchise you choose.
It’s Still Risky
Any business endeavor is a risk. There are fewer risks associated with owning a franchise because you do get a number of benefits. However, there is still the risk that you wind up closing shop before you recoup your initial investment. In addition, you might find that you have financial obligations to the franchisor even if your business fails.
Franchise ownership offers a number of benefits over starting a business the traditional way. But it isn’t for everyone. The key to owning a successful franchise is to find the right one for your particular skill set and region.