In my last two posts I discussed starting a business from scratch and buying an established business. Today I will discuss buying a franchise as an alternative. This option does have certain advantages over the other two choices.
The failure of franchises is very small compared to other new businesses. Most franchisors will offer training, documented systems and the security of a brand name. There will often be advertising for the brand. All of these advantages however do come at a significant cost.
Buying a franchise is often buying a job, or as I have heard said, buying a terrible lifestyle. You work long hours; have all the conventional headaches that go with a business and you pay big money for that!
Many franchisors will dictate the hours you work, what you wear and how you do business – a far cry from the entrepreneurial dream of freedom – and you pay top money for that. You may hear in my voice this is not my favoured option. I must confess it does not appeal to me and it is one route I have not taken personally. I do recognize though that it does work for many people.
Let me know if you are a franchisee and tell us about your experience.