The Downsides To Franchising


Many budding entrepreneurs wish to set up a business for themselves, being your own boss is alluring, and making it in the world of business has a certain pull which is why so many people give it a shot, unfortunately, many fair. This is why so many people are tempted by franchising, where you essentially use the brand name of a successful company but operate the branch as if it were your own business. There are of course huge plus sides, your marketing is done for you, the brand is instantly recognizable and you have a client base, but there are downsides too.

You Have One Hand Tied Behind Your Back

While owning a franchise as clear perks, you will be unable to make certain changes. Policies, procedure and restrictions are all in place and need to be adhered to. This usually means pricing, what services are on offer and employee benefits. Although you benefit from franchising in a few ways, this is certainly a downside. Although you’re the boss, you cannot change anything for the needs of the business or make new policies you think could make it all run smoother, instead you’re hampered by existing policies which suit the business from a regional perspective, and are not tailored to your own specific branch.

You’re Fairly Limited In what You Want To Do

If you have settled on franchising, then you’ll likely have certain businesses already lined up for approach. What you will soon realize is that on the surface is that the majority are in the simple cash for service game. Restaurants, coffee shops, that kind of thing. It means you can’t do something that can benefit your fellow human, whereas if you set up your own business you can. You can set up a charity or a service that can really help people. These opportunities are few and far between in franchising, however some do exist, there are some senior home care franchise opportunities, which means you can make a difference.

The Initial Expense Is Huge

Usually, when people are setting up business they try to limit the initial costs as much as they can, of course mistakes are made, but loans are required so it is vital nothing is wasted as the cash could be needed later on. When using a franchise a huge cash some is usually paid to the wider company. For example, to use a Burger King franchise you need to pay them 50,000, and that’s before any investment in the new building which will usually cost over 350,000 once architect fees and planning permission has been calculated. So although the long term gain could be great, in the short term you’ll need a huge cash injection that is only really suited to already successful businesses.

You Can’t Put Your Own Slant On It

If you set up a franchise the interiors are exactly the same throughout your country. But if you set up your own business you can really make something different, something that will succeed. Building your own company can also generate more excitement that a franchise, people know what franchises are and what they’re about, but if you create something different, unseen and novel then you’re going to drum up way more business, and keep all of the profit.


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