Franchise Business Opportunities – the Pros and Cons
For those looking to get into business on their own, franchise business opportunities can seem the best way forward. However, like any other business opportunity, there can be drawbacks. Understanding what these are is important but so too is understanding how to avoid them, and how to ensure the positives are gained. Here is some advice to make sure you make the right move.
Pro – A proven model and successful brand
Franchises are successful primarily for three reasons. The first is the hard work that each franchisee puts in, and the second the proven business model. The brand’s presence is important too, particularly if this is advertised by the franchisor on a regular basis. Researching how a franchise has become successful is important, as is ensuring there is complete access to intellectual property rights.
Pro – Territorial advantage
The agreement with the franchisor should provide complete access to a given territory, with no chance of another franchisee being taken on in a defined area. This allows a customer base to be built, whilst it also helps target marketing and promotions far more effectively, and build a local reputation. With the best franchisors having research the location too, it should be possible to hit the ground running.
Con – A restrictive agreement
Though a business model is what makes franchise business opportunities successful, if they are too restrictive it can be problematic to meet local changes effectively. This has caused issues for franchisees in the past, so working with those franchisors that are flexible to changes as necessary and sensible is important.
Pro – Guaranteed business support
A very attractive facet of franchise business opportunities is in the support that is available from the franchisors. Though support and training at the start is paramount, so too is having that ongoing service to openly discuss strategies moving forward, and ensure skill levels and knowledge is kept up.
Con – Unfair costs being levied
As with any other area of life, there are those franchisors which tend to push things too far. As such, some franchisees have seen costs be unrealistically high, restricting their business and ultimately making it unworkable. However, the best franchisors will set rates at reasonable levels, explain them, and ensure their franchisees are successful.
Pro – Ease of financing
Franchise business opportunities are well known for offering a better chance of success; drawing on the benefits outlined above. For this reason too, they make for a far more attractive investment for lenders. With many franchisors also offering additional advice for financing, it is a far better option for those looking to start out on their own.
Here at Minuteman Press, we are committed to helping our franchisees excel with their outlets. From the first class training we give at the start, through the constant support we provide, and on to the excellent assistance offered if resale is required, we are amongst the best.
With nearly forty years of service in the print industry, and over 35 years offering franchise business opportunities, we are consistently rated number one; and we want to keep things that way.