If you are thinking that you would like to start your own business and be your own boss but you don’t have the expertise, there is a solution for you. There are many benefits to buying a franchise such as a Cold Stone Franchise and not many drawbacks. For one thing, you don’t need a lot of business experience because you’ll get help.
What Are the Main Advantages of Buying a Franchise?
Since franchises have a higher rate of success than start-up businesses, you are already ahead of the game. You can add to this head start if you buy a good franchise company. This will give you a proven successful business plan. Companies are required to disclose the information you need, so you can make an informed decision. Some things to consider are:
You can select a company that offers training programs for you and you’re employees that will teach you how to efficiently run the business. Along with that, you may get reference material that answers all the important questions that may arise. This includes business management and financing.
The head company will give you ongoing assistance and support. You can call on experienced people for just about every aspect of the business, including marketing, customer attraction and retention and help with your grand opening.
• In many cases, the head company will help you find a good location where you won’t be in competition with another franchise of the same company. They can also negotiate a deal for property that will help keep your costs down.
• If you are starting from scratch and need to construct a building, the head company will help you design the layout of the business, make sure you get the right equipment you need to run the business and help you find the right contractor. The company will also help you get the machinery, uniforms, inventory, supplies and furniture at reduced prices.
What Are the Disadvantages of Buying a Franchise?
• A franchise owner is not completely independent. This has its pros and cons because on the one hand they get all the help listed above, but they must operate their business according to the restrictions set by the franchisor. These restrictions are usually related to pricing, products or services offered and geographical area of the new franchise.
• A franchisee must also pay ongoing royalties and other fees. This may be considered a disadvantage to some, but it can also be seen as an advantage because you will not be making expensive mistakes. True, you have to pay for all the help you get, but that’s part of the advantage of getting a jump start on being self-employed. You may also have to pay marketing fees for nation-wide advertising.
• The most important disadvantage is really out of your control. If there is a major issue connected with your head company, your franchise could also suffer. However, if you start with a strong company, you’ll most likely be able to weather any storms.
If you supply the enthusiasm and energy, buying a franchise is very low-risk, and you can calculate fairly accurately your rate of success. Brand recognition is a major benefit of owing a franchise because you start with a huge customer base. You don’t need to worry about building a reputation or attracting customers.