FranchiseBazar helps property owners start a new business, to become a franchisee, or to open a business in their retail space, office, commercial or their own residential property that will be right. The franchising industry regularly likes to remind us that being a franchisee is a safe and potentially very profitable career. While this may be true, there are also downsides.
We look at the best and worst aspects of starting a franchisee in your retail/ office space:
Pros of franchising
- A big name can lead to big success: Working under a well-known brand name such as McDonalds or Subway has obvious benefits for franchisees.
- Ongoing help and support: Once you take up your franchise, your franchisor won’t simply wave you goodbye and let you run their brand into the ground without a word of advice. As well as training programs and first-hand support, most franchisors help find and retain customers and assist with setting up accounting or stock control systems.
Cons of franchising
Initial and continuing fees: Franchisors will charge new franchisees a lump sum to startup a business using their brand name. But the good part is since you have your own property to start the business you will not have additional property deposit costs.
Other people’s decisions could sink your franchise: The lack of actual control you have over your franchise means that even if you run a profitable outlet, you could still lose everything if your franchisor makes bad business decisions and the firm fails.