So you're thinking of investing in a food franchise business. Chances are, you've already talked to a successful franchisee who inspired you to buy one. On the other hand, you may have also come across someone who has warned you against buying a franchise. To keep things in perspective, below are two good reasons to buy a franchise, and two good reasons not to.
The positive reasons
Buy a franchise if you want to work for yourself. When you become a franchise owner, you never have to face the tough job market ever again. That said, you still have the franchisor's corporate headquarters to deal with, but that isn't really a bad thing, at least not as bad as going through dozens of job interviews or having a strict boss breathing over your neck.
Buy a franchise if you don't want to take a big risk. The main advantage of franchising is that you have a franchisor who can guide and support you every step of the way. They also have a tried and tested business model that can boost your chances of becoming successful. Good franchisers usually offer ongoing training and assistance to their franchisees, and this ensures that your franchise is always up-to-date with your market's latest trends.
The negative reasons
Buying a franchise can be expensive. You might have plenty of experience running a business, but unless you have deep pockets or stellar credit, a franchise can be next to impossible. Fortunately, there are franchises out there that cost less than a hundred thousand dollars to start up, which you might want to learn about and do more research on.
Buying a franchise may be less risky than starting your own business, but it's still a risk. If you choose the wrong franchise, you could end up going out of business and lose your up-front investment. Therefore, investigate franchises thoroughly and follow it up with in-depth market research so you'll come out a winner.
Whatever type of franchise business you decide on—whether you choose a pizza franchising business, yogurt franchising, or something else—know that becoming a franchise owner is a big decision. Be sure to learn as much as you can about the business before you sign on the dotted line. For tips on how to lower your risk when buying a franchise, visit thefranchiseking.com/top-10-ways-to-lower-your-risk-when-buying-a-franchise.
Pros and Cons of Getting into the Food Franchise Business