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Are you familiar with the risks and benefits associated with franchising? How about the pros and the cons of starting and growing your own business? Letu2019s find out!
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When it comes to opening your own business or buying into an existing business, there are several different ways that you can get started. You may have the option of everything from buying into an existing business, buying a franchise, starting a franchise out of your existing business or expanding the existing business or franchise that you have. Are you familiar with the risks and benefits associated with franchising? How about the pros and the cons of starting and growing your own business? Let’s find out!
Today, we are going to walk you through some of the benefits and the drawbacks of starting your own business and what that looks like when compared with investing in a franchise. So what is a franchise and its pros & cons? A franchise is a business that allows entrepreneurs to use their name, trademark, systems, and operations as their own, in exchange for a franchise fee and ongoing royalty costs.
Some of the greatest pros of buying a franchise are related to the fact that you are already buying into a business with customer trust and brand recognition. When you put your sign up and open your doors, there is a good chance that there are customers in your area that are already brand loyalists as well as potential customers who already recognize the name, signage and reputation of your brand.
More Pros • It makes it much easier to get your first sale and begin growing your revenue when you already have people who know who you are and trust in your brand name. • Your franchisor or parent company will give you all of the tools and the systems that you need to be able to run your business smoothly and effectively. • Franchising can also make it easier to grow your business. In many cases, franchisors will let you and other franchisees know when other location opportunities become available for your business.
The cons to buying into a franchise are largely associated with a lack of independence. When you go into a franchise, you have to pay an initial or recurring fee and royalties to your franchisor. That payment is for the ongoing use of the franchise’s name, reputation, operations, etc.
More Cons • Being under a franchisor also gives you a lack of control over your business. • There are many standards that you are going to need to abide by when you are a franchisee that are mandated by the franchisor. Infractions of those standards can be punished with penalties from your franchisor.
All Around All around, opening a franchise is a great way to go if you are interested in running your own business while minimizing the risk of starting one on your own. Franchises will give you a federally trademarked brand, a well-tuned systems and operations and all of the resources that you need for getting started.
Franchising is being employed by more businesses and more types of businesses than ever before. Today, franchising is the chosen method for successful business owners who are looking to grow their concept quickly and without investment of more capital. Do you want to franchise your business? Do you want to buy a franchise? Send us a message and we’ll get in touch with you! Phone: (305) 592-9229 Email: info@franchisecreator.com
