By Paul Adamson
Being your own boss is the dream of many industrious and entrepreneurial people. When the time arrives for someone to buy a business, there are always many things to consider. What are the pros and cons of buying a franchise business? There are personally determined factors such as industry, market segment, location and your budget, but there is also a very big decision as to whether you buy a franchise or an independent business.
Investing in your own franchise can be the best decision you ever make. However, franchises aren’t for everyone. Depending on what you want out of your business investment, what you want to do with it and your skills and experience will have a massive effect on your final decision. Like any big decision you’ll make, there are clear pros and cons to operating a franchise.
When buying into a franchise, establishing yourself into the market is made that much easier by the franchisor having already done all the hard work in building up your brand recognition and developing the systems you’ll need. The franchisor will provide a ‘start-up’ package for you, complete with training, procedures, store design guidelines and suppliers.
It should be noted that buying into a franchise system does not guarantee success and you still have to work extremely hard to make a success of it. As a result of the franchisor supplying essentially an off-the-shelf package for you, the start-up costs can be quite expensive. The ongoing requirement to pay franchise and other fees is something you’ll also need to be happy with.
The corporate level support that you’ll enjoy in a franchise and the economies of scale are great. However, if you want to steer your own ship, alter the product or service lines and make your own decisions, then you should steer away from franchises and investigate buying an independent business or start your own.
If you’re looking to buy a business, you should consider the pros and cons of operating within a franchise model before making your final decision. In many respects, a franchise is an appealing option that provides a strong framework for success. However, for others who want to exercise their own business judgement, a franchise might not be the right opportunity.