Franchise Blog

HeraldNet has a pretty good article on their website about how franchising can be a good idea if you want to be in business for yourself. This article lists some of the advantages and disadvantages to operating a franchise business that you have to take into account before making a decision.

Some of the advantages:

• You don’t need to reinvent the wheel - you will operate a business that has been refined and perfected for years
  
• You benefit from the brand - you are purchasing a brand name that most likely already has value in the franchise market place
• You get support - not only the franchisor will help you, but you can also get advice from other franchisees

Some of the disadvantages:

• You will have to follow the rules - it’s not called a “franchise system” for no reason…
• You will have to pay royalty fees - that’s part of the game

Reading this article, I understand some franchisees couldn’t deal with these disadvantages anymore:

After owning franchises for 11 years, Jones said he’s ready for business independence. He’s taking his restaurant franchise knowledge and applying it to his own concept. He has opened two Blazing Onion restaurants in Mill Creek and Snohomish.

Jones and Christensen said new franchise owners may also get frustrated paying a percentage of their sales (not profits) to the franchisor as a royalty fee. Those fees are different for every franchise.

The article ends on a franchise advice. So, what is the best advice a potential franchisee can receive?

Both stressed the need to do your homework and thoroughly research any potential franchise opportunity because many of the franchises in the market aren’t worth the investment.

“Be sure to visit several franchisees in the system you are considering. These owners will give you the straight scoop on what it is really like to run that franchise operation,” Jones said.

Read the full article here.

Filed under: About Franchising, Franchise Talk