When deciding on whether to join a franchise or not there are several things to consider. Should I join a franchise? Will being part of a franchise hold me back? What is a franchise? Will I be tied in for a long time? Will there be an agreement? What costs will be involved?
Hopefully this blog post will help to answer some of your questions because it can often be overwhelming when you are thinking about which franchise to join or even if a franchise is the right thing for you in the first place.
A franchise in simple terms is a joint venture between a franchisor and franchisee. The franchisor owns the brand and it will sell the right to use their name and idea. There will be an agreement which could tie you in from three to ten years and there wil be clauses which a franchisee must adhere to for the duration of their stay with the business.
A franchise isnt for everyone due to the fact that there is often a large up front investment, which may not be afordable for everyone. There are also ongoing fees in the form of a monthly management fee which can add to the financial burden.
Franchisees often feel that they have a lack of control due to the fact that the brand and agreement prohibit the franchisee from creating their own content or using their ideas. They can also feel that they have limits in how quickly they can grow due to territory restrictions.
So why could a franchise be a great idea for someone wanting to run a business? Surely it isnt all negative? Well anyone buying into a franchise is becoming part of something thats a proven success. The name of the brand is of course well known alongside the logo with an investable track record. Franchisees are often given full and ongoing support and training throughout their agreement.
So to summarise franchises come with less risk, support, a well known brand and a proven track record. There is far less chance of being creative and going off piste however the growth potential is a positive one. Franchises are sold every single day world wide and they sure do beat the feeling of going it alone without a shoulder to cry on.
Catherine Williams