Owning a Franchise - Pros and Cons
According to recognized small business expert, Darrell Zahorsky, author of the Small Business Information Guide, on About.com, there are advantages and disadvantages to buying a franchise. The following list provides a brief overview of some of the pros and cons you should consider before deciding to purchase a franchise.
Pros
- Name or brand recognition of franchise
- Proven system of doing things
- Protected territory
- Franchisor support for management training
- Franchisor support for business practices and marketing
- Support from other franchisees
- Lower inventory costs due to bulk franchisor purchasing
- Easier recruitment of employees due to name recognition
- Increased financing opportunities
- Less freedom to innovate and make decisions
- Long work hours to get your franchise up and running
- High initial setup fees and continuing royalty payments to the franchisor
- Franchisor may not live up to promises for marketing and field support
- Suffering the effects of bad business decisions by the franchisor
- Contractual agreements are in effect even if the business fails
