If working for a company in a more traditional role doesn’t appeal to you and starting your own business is just too daunting, perhaps buying and running a franchise may offer an alternative.
What is a franchising? A system of distribution in which semi-independent business owners pay fees and royalties to a parent company in return for the right to become identified with its trademark, sell its products and services, and use its business format and system.
There are a host of things to consider when buying a franchise. Listed below are some of the initial points to think about:
Benefits of Buying a Franchise
- Management training and support
- Brand name appeal
- Standardized quality
- National advertising
- Financial assistance
- Proven products and business formats
- Centralized buying power
- Site selection and territorial protection
- Greater chance of success
Drawbacks of Buying a Franchise
- Franchise fees and ongoing royalties
- Strict adherence to standardized operations
- Restrictions on purchasing
- Limited product line
- Contract terms and renewal
- Market saturation
- Less freedom
Right way to Buy a Franchise
- Evaluate yourself
- Research your market
- Consider your options
- Get a copy of their Uniform Franchise Offering Circular (UFOC)
- Talk to existing franchisees
- Ask some tough questions
- Make your choice
If you want to learn more about Franchise as a career option, here is some resource material to kick off your research: