In today’s marketplace franchises are pretty popular and diffused in almost all fields and industries. For new entrepreneurs, owning a franchise can mean being able to break into a market and to start working and generating a revenue. But owning a franchise is not always so easy, there are actually both benefits and inconvenience in owning this kind of business activity.

Do You Know What A Franchise Is?

Many people tend to connect the idea of franchise with a guarantee of success. Although you won’t have to fight against well-established brands in your niche, you will anyway have to take some risks as well as to work hard to meet certain requirements.

Another thing that seems to be common to many first-time entrepreneurs is a lack of awareness of what a franchise actually is. It’s always better to deepen a little in the real nature and qualities of the franchise, so you will be able to get to a mature and aware choice. So, in short, a franchise gives you the opportunity to buy into an existing and reasonably successful business model, that comes with tracked records and that offers you a training program, beyond offering a large array of quality supplies and technical support.

All you have to do to apply for a franchise is to find a good location for your store, which is pretty close to other main commercial businesses but away from competitors. Moreover, you will have to find a place which meets structural requirements, for example, size, number of floors, car parking, etc. Once you have your choice of the place and have signed a rental agreement, you will need to contact a locksmith close by to get commercial doors or locks installed, plus a good alarm system and a few more services for your new store’s security.

Relevant Benefits Of Owning A Franchise

Let’s get started with the main advantages of owning a franchise. You will find out that there are several good points to consider, such as:

• Established brand
  That’s the most evident benefit that corresponds to a very low failure rate. Franchises have actually better chances to succeed than independent startups, regardless of geographic positioning.
• Technical and business support
  As a new franchise owner, you have the right to access both technical support and business management assistance. The assistance is goal-focused in order to bring you to the best results. You will receive supplies, training and anything you may need to get started and ongoing work throughout your businesses daily activities.
• Visibility
  Franchises break into the local market successfully thanks to the established brand name that they carry with them. You won’t struggle to get your first customers especially if you joined a national brand-name company. In other words, you will get started with built-in loyal customers that live close by your franchise business.
• Profits
  From a financial point of view, franchises can be really viable as the profits are largely impressive. Although this aspect may mean to face higher franchise costs, the profits are way higher than that.

Main Disadvantages Of Owning A Franchise

So, now it’s time to take a look at the most relevant disadvantages of being in a franchise business model.

• Guidelines
  You aren’t free to manage your business activity the way you want. You actually have to conform to the rules and guidelines of the franchise company. Depending on the specific company, you may find this aspect very limiting to your skills as an entrepreneur. Some of the most common guidelines involve the business location, hours of activity, product pricing, furniture and a few more. That’s to create a certain level of uniformity among all franchise businesses that operate under the same brand name.
• Costs
  There are ongoing costs to consider, as well, especially if the franchisor doesn’t offer all-inclusive assistance. So, check the agreement and do some math to see how much you may have to spend on training or support. Another crucial aspect is the upfront cost for financing: this cost depends on the specific franchisor, so make sure to check this point in advance.
• Risk
  New franchises that are little known may mean less starting costs but higher risks. Keep in mind that not all franchisors can assure you the same level of success and some new rising franchisors may also fail within a short period of time.

The bottom line is that you’d better investigate deeply into the pros and cons of any franchise business you may be interested in so you can find out if it’s really worth your efforts and investment.