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The pros and cons of buying a franchise

When considering buying a franchise, there are a number of factors  to consider in addition to just running a normal business. The following are some of the Pros and Cons to consider:

Pros

1. Buying an established business, so more likely success rate
2. Business and profit model established
3. Should get business assistance from franchisee
4. Will have systems set up
5. Have policies and procedures set up
6. Will have marketing done for you (and hopefully use past experience to know what works better)
7. Can have better buying power on products as buying through the franchise group
8. Can get finance a bit easier to fund the set up

Cons

1. Paying a premium fee at the start (and know if any future lump sums like store refit, etc)
2. Paying on-going fees – how much will this be each year and what do you get for this?
3. Are restricted in the creativity and freedom of what you do with the business
4. Strict rules and contractual obligations to follow (which are usually in favor of the franchisor and not the business owner)
5. Can be harder to resell
6. Potential negative press on the franchise name

These factors above are in addition to the considerations I have written in a different blog below about when looking to run your own business, like work hours expected, record keeping systems, if you have any employees and getting HR assistance, setting financial budgets, etc

https://weareaccountable.com.au/tips-for-setting-up-and-starting-a-business-by-pat-hoey/

By Pat Hoey