The Advantages and Disadvantages of Business Franchise Opportunities
Investing in business franchise opportunities can be a quick and relatively easy way to start your own business. Though it provides an instant way to get started, there are both advantages and disadvantages that business franchise opportunities offer.
Here are the top advantages.
A proven idea
What sets franchises apart from many other businesses is that they work to a proven idea and business model. To make sure you choose the best opportunity, it is important to research the company and understand how and why it performs as it does.
A recognized brand
When investing in business franchise opportunities, you are immediately given access to use an established brand name for your business. This access includes the use of logos, trademarks and reputation, whilst you will also benefit from any central promotions and marketing.
The best performing franchisors will always provide support to their franchisees. This will also involve a level of training and direct help in setting up the business and the premises. The best franchisors will also provide ongoing support and training, and be available to discuss opportunities.
The agreement that is in place with the franchisor will provide exclusivity to a particular territory. This will allow you to have a guaranteed customer base to aim at. The best franchisors will also have done most of the research over the best locations to be based, making entry to the market much easier.
Lenders are far more likely to lend to an entrepreneur investing in business franchise opportunities. The good reputation, proven business model, and increased chance of success make things much the better proposition.
Communication between other franchisees helps to formulate ideas and innovations, and move things forward quicker. Further still, there are also established relationships with suppliers, though the best franchisors will not insist these are used.
Here are the top disadvantages and how to avoid them
Some franchisees have been troubled by higher than expected costs when investing in business franchise opportunities. All franchises require initial costs to be paid and royalties on all profits, but these should be clearly explained and not restrictive. The best franchisors will always ensure these are fair, to ensure the business continues to thrive.
The business model is what has made these franchises so successful but, for some, this agreement can prove too restrictive. Working with a franchisor who allows discussion to be had and changes to be made to suit local conditions is important.
If one franchisee performs badly it can affect the whole of the operation, so it is paramount that the franchisor has a thorough recruitment process in place. All the best franchisors will ensure they only work with people that will push the brand forward and provide the hard work needed.
At Minuteman Press, we have provided business franchise opportunities to US entrepreneurs for nearly forty years. Over this time, we have won awards for our training and support and established more than 900 franchise outlets. With generous royalty incentives and constant support, we are here to make your business work.