4 Pros and Cons Of Franchising!Posted by On

4 Pros and Cons Of Franchising!

It is one thing to make a name for your company and brand all on your own, but it’s another to start a franchise. It’s not to say that it is a bad thing, but it is very risky. You need to weigh your options more carefully before you even decide to go with the franchise business model.

Regardless of whether you go for long-term plans or franchising, each of them come with something that people look up to and something that turns them off. To shed more light on your decision, we will look and compare all of the pros and cons that come with opting for a franchise business model.


1.    It Lays The Groundwork For You

There are great pain and difficulty in starting your own business from the ground up. You have to consider your brand, target culture, business model, as well as your culture. But if you find a franchise that you can look up to and work out, then you can set up a strong base from that and add in some of your touches to make it yours eventually.

2.    You Know About All Of The Costs

One of the other downsides of starting your own business is the costs that exceed your comprehension. Sometimes the costs are too much for you to handle. With a franchise, however, you are aware of all the costs and how to handle them better.

3.    Access To Better Talent

From scratch, you do not have the capital to fund for the appropriate talent that will help you run your brand. But franchising allows you to make use of great talent because you have invested in a successful company already. The talent that you have on the table will help you manage your locations.

4.    Your Recognition Will Be Greater

By working with a successful brand, your name and recognition will certainly go up with it. More and more people will know about you and what you are trying to promote. Smaller companies are not this fortunate as it would take them a long time to get that far or they just don’t have those kinds of resources.


1.    Large Initial Payout

An initial payout is the franchise fee and start-up costs. With that in mind, some of the larger franchises involve big initial payouts, which is at times more than it what it takes to start your own business.

2.    You Work The Way They Want You To

Just because you jump in on the train of success, doesn’t mean you get to call the shots. Every person under a franchise has to go through the guidelines and training instructions that come with the company. Your entrepreneurial creativity will also be somewhat restricted due to the company policy.

3.    Less Control On Managers

From what we established in the last point, you cannot tell franchisees or the managers what to do. You should know that franchisees are independent businesses, and thus, you have no lip into telling them what they should do and what not to do.

Their goals are different than that of your own, which could also lead to legal trouble.

4.    Creative Challenges

Seeing as how franchisees are the ones that supervise the operations, you cannot hope to innovate you get it approved from them. But this could be challenging if you do not share their vision of the company. You could be playing a very hard ball game with them constantly.

Therefore, it is a lot harder for you to innovate or come up with new ideas for products and services than you would if you had your own company.

Author Bio:
Catherine Daisy works as a Professor of MBA at UAE Assignment Writing. She is passionate about writing on business ideas and loves sharing them with aspiring entrepreneurs. In addition, she runs a team of assignment writers to assist students in their paper.


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