With so many moving parts, launching a business is enough to make your head spin. The launch itself can be complicated, and the results are never certain. But for many entrepreneurs, franchising can offer the best of all worlds. Here are some essentials to consider if you’re thinking about taking the plunge.
The pros and cons of being a franchisee
It’s well documented that there are many advantages to owning a franchise. Whether in the restaurant, retail or service sector, the franchisee instantly benefits from an established network with solid expertise, high brand recognition, a proven business model and powerful marketing tools.
On the other hand, a franchise owner has to comply with certain obligations and respect various rules and protocols. For any entrepreneur who dreams of total freedom, such constraints can be a hard pill to swallow; for others, the franchisor–franchisee relationship can be a source of motivation. The franchisor is actually a bit like a GPS: very handy for reaching your destination quickly and easily. Of course, nothing happens by magic. Every franchisee has financial obligations toward the owners of the banner, and those obligations must be honoured.
How to launch a franchise
If you’re an aspiring entrepreneur, you need to look for trends and see what the competition is doing. The next step is to identify a business sector and ask yourself the right questions: Will the service or product still be relevant in 5, 10 or even 15 years? How many years of my life am I prepared to devote to it? Are the brand and its clientele in line with my own goals and values? That last question is extremely important, since many hours and lots of energy will be required to make the business a success.
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