If you’ve always dreamed of owning your own business, but aren’t sure where to start, you may consider purchasing a franchise instead. Franchises are common in Florida and nationwide.
A franchise involves buying into an already-existing business, rather than starting your own from the ground up.
Purchasing a franchise may seem like a great idea. Since you are buying into an existing business that has already proven itself successful, you may assume that there is no way you can fail.
However, before you purchase a franchise, you should know about the advantages and disadvantages of owning a franchise.
Advantages of a franchise
It is true that you have less of a chance of failure with owning a franchise vs. starting from scratch. A franchise already comes with its own products, supplies, business structure and history of success.
Buying a franchise automatically provides you with recognition from the brand name alone. This can save you significant advertising and marketing costs since your brand is already out there.
As a franchise owner, you are provided with all of the necessary resources and supplies from the franchisor to run your business. You will also likely receive discounts on purchasing new inventory and supplies.
Disadvantages of a franchise
One of the biggest disadvantages of owning a franchise is not having your own creative control. Since you are not an independent business owner, you cannot make your own rules, but you are required to follow the rules of your franchisor.
This can be especially challenging if you have your own ideas on how to grow or structure your business. Your freedom to implement these may be inhibited by your franchisor.
The rules do not just apply to major concepts. You must also follow the rules for minor things such as business hours, signage and store layout.
Although you will have the support of your franchisor, this comes at a cost. You must pay a portion of your monthly profits to your franchisor, and you may be subject to additional or changing fees from them for the services they provide.
Buying a franchise requires a lot of money up front, and there is still no guarantee of success. Before deciding if purchasing a franchise is the right choice for you, it may help to speak with a business attorney.
