If you know the basics behind franchising and you’re still considering franchising, there are a few things that need to be thought about when you’re making the decision. While a pro-con list is a great way to begin, many of the pros are also a con and vise-versa, if you really think about it – therefore, the only way to think it through is to figure out what matters more to you, as a business owner.
First, knowing that you will be a business owner either way is important. A franchise owner still has to do just as much work as a small business owner. Owning a franchise is not an excuse to do less – don’t hold onto that as even a possibility. If you do, the business will fail.
One big reason many small business owners choose to franchise is because of the branding. Using an already established brand is a great way to gain regular customers. Generally, a recognized name will pull in more passersby customers than a privately owned business. However, the con to this is the same – using an already established brand. Because the franchise is what it is, there is no room for you to grow as a business. You cannot create a brand for yourself. Of course, this isn’t a big deal for many. But if you want to create your own brand, franchising is not for you.
Another double pro-con is similar to that. Selling a franchise’s products tend to be reliable. People know what to expect, so when they order, they know what they want and it’s easier to draw in people that way. On the other hand, your signature will be the franchise’s signature. If you want to capitalize on something you know how to make, you can’t franchise. With a franchise, the available products are limited to what the franchise offers. You can’t expand that.
Following that, you, as the franchisee, lose a lot of creative say. For straight-laced, business oriented people, that may not be a big deal. But with a franchise, you’ll never be that store that everyone in the area knows because of their fun waitress outfits, or theme nights. Things like that can draw customers in masses, but only in the right areas. This is where location and surroundings play a part. For example, if you’re by the coast, you could use that to your advantage with beach themed nights and such. That’s not really possible as a franchise. However, the positives come in the reliability of shipments of what you need, already standard uniforms, training courses already made for your team, etc. This is another point that can go either way.
Basically, when you’re considering which way to go, it’s important to look at each point in the positive and negative way. Be sure you know what you’re getting into, and be sure you’re sure with your decision. There are strong reasons to go both ways, so picking the right one is important here. If you are set on franchising the first step would be to start going through franchise opportunities.