Compare and contrast the pros and cons of owning a franchise?
|
Pros |
Cons |
|
Ready-made business systems to help the franchise to become operational right away. |
Franchise fee to be paid up front. |
|
Formal training program (online modules, formal training class) after franchise agreement signed. |
Royalties (percentage of sales) to be paid to franchisor every month. |
|
Technology designed to help manage customers, and administrative tasks. |
Strict franchisors’ rules with no wiggle room. |
|
Marketing/Advertising already in place to help launch your franchise. |
Requirement to pay a percentage of gross sales into the franchisor’s marketing fund. |
|
Excellent support systems (in-house personnel, field reps, etc.) |
Most products and supplies need to be purchased from the franchisor. |
|
Real-estate resources to help source best location for franchise. |
Sale of franchise requires approval from the franchisor. |
|
A whole franchisee network to reach out to for help and advice. |
Potential competition from other franchisees in the network. |
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