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#1
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There are a lot of reasons that could make anyone want to consider franchising. There is the ready-made system, for example. There would be no need to conducts studies for research and development. There would be less costs in advertising. But what would make you NOT consider franchising?
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#2
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The oppurtunity and rewards on making it on my own, that's one incentive for not franchising. Consider this, for a regular food cart, you need to invest at least $5,00.00 for a fee alone. What if I will use that amount to offer a better product or service instead?
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#3
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| The biggest disadvantage of buying a franchise is you are not your own boss. This means, you will have to operate in accordance with systems and standards set by the franchisor. If you're naturally born with wonderful ideas in mind, it could be frustrating that you'd only have to follow what was told of you. Next is that, before starting a franchise it is but pertinent that you conduct an extensive research, which is rather costly. Third, buying a franchise is not actually cheap. Usually, you need to spend big amount of money. Fourth, franchising can cause potential conflicts in the future between the franchisor and franchisee, usually when it comes to franchise agreement. Fifth, franchisees become dependent on franchisors in maintaining the integrity of the brand. The franchisee don't usually have the power to control it. |
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#4
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One disadvantage of franchising is that everything is already set for you. You cannot decide on yourself. You have to follow the agreement on the franchise. Another thing is that franchise fee can be very expensive.
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#5
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I think the regulations franchisers lay down would be the most annoying thing, although they are good because they guide you to conduct good business. The cost is the biggest reason why I wouldn't want to obtain a franchise. You have to pay royalties yearly on most of them, that are insanely expensive. It's almost not even worth it.
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#6
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The investment associated with franchising are the biggest deterant. Would you invest well over a million dollars into a McDonalds franchise to actually wind up making only a $20,000 - $40,000 per year profit? A quote from a friend of mine who owns 7 McDonalds stores..."Jeff, I just bought myself 7 jobs" The key is to use the franchise "business model" and either develop your own business or work in Network Marketing which is as close to franchising as your gonna get. |
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