Franchising can be a great alternative if you want to have some guidance in the start-up phase of the business. Before you decide to franchise, you need to do your research. You could lose a significant amount of money if you do not investigate a business carefully before you buy. By law, franchise sellers must disclose certain information about their business to potential buyers. Make sure you get all the information you need first before entering into this form of business.
Advantages of Franchise:
- Established product or service
- Association of proven products and methods
- Support from franchiser including site selection, training, advertising, management support
Disadvantages of Franchise:
- Lose some independence
- Required to operate according to procedures and restrictions set by franchisor in franchise agreement
- Franchise fee and royalties
- A damaged, system-wide image can result if other franchisees are performing poorly
To learn more about franchising opportunities, visit Federal Trade Commission Bureau of Consumer Protection (FTC) and International Franchise Association (IFA).