Going into business for yourself opens up a world of possibilities. And while some want to start their own business from scratch, others would rather look into owning a franchise. If you are one of them, you’ll want an overview of what exactly opening a franchise requires you to do.
Owning a franchise means running a specific location of someone else’s business. Once you’ve paid your franchise fee you are granted access to the brand name.
There are a few benefits to owning a franchise. One is that the business is already set up, so you can jump right into running your own location. This is a business that is already running smoothly, saving you a lot of frustration. As long as you maintain the brand’s image you’ll likely have a smooth experience running daily operations on your own.
When you need financing in order to get your location up and running, sometimes you can get it from the franchise owner. But it is usually easy to get a business loan from banks and credit unions. A well-known, trusted brand name makes your franchise seem like less of a risk to lenders. It also draws in consumers because they know the quality of what you have to offer will be as good as they expect it to be.
You also have a lot of support behind you from the franchise owner, and this can propel you towards success. They will often help you choose the location for your business as well as train you on how they want it to be run.
But for as many pros as there are to owning a franchise there are cons as well. One is that buying into a franchise can be expensive. After you’ve paid the initial fee you will encounter other fees. These include fees for royalties, training, and advertising.
Another con is that you will have to run the business the way the franchise owner wants it run. They control what you can and can’t sell, and may even ban you from running the business in certain locations.
For more information on owning a franchise, please contact Fortis Funding.