Deciding Whether to Franchise

Before you consider whether you're cut out to become a franchisee, you need to understand some of the advantages and disadvantages of franchise ownership.

Advantages of franchise ownership

Your chance of success in franchising can only be as strong as the franchise you select. Mature, well-operated franchise systems generally possess the following traits.

Overall competitive benefits

The public has become accustomed to a certain level of quality and consistency from branded locations. Whether a company's product is superior or mediocre, if its locations are successful, the secret for its success will likely be in its consistency.

One of the secrets of being a good businessperson is not accepting a poll of one: Just because you find a product or service outstanding or mediocre doesn't mean the rest of the world does.

Regardless of where they are, consumers believe they understand the level of quality they will receive when they shop at a branded location. This often gives new franchisees an established customer base. Branding makes it easier to compete with the well-established, independent operators and even against other franchised and nonfranchised chains. The advantage of brand recognition also extends to national accounts. They look at a system that has a network of locations and trust that each will operate at the same level of consistency and commitment. That type of system can service their needs wherever the franchise has a location.