What Are The Pro’s & Con’s Of Franchising
Franchising is still a very popular way of establishing your own business but how do you know if it is the right choice for you. In this post about franchising I hope to guide you through the pro’s and con’s of operating a franchising business.
Pro’s of Franchising.
- The ability to trade under the umbrella of an established brand or company.
- To sell product or services that have already been tried and tested in the marketplace.
- You do not have to creat and develope the product.
- Extensive training is usually offered.
- You get help and assistance with marketing your business.
- In many cases you are assigned a territory for you to trade in.
The Con’s Of Franchising.
- Very high initial outlay coast. Usually these range in the 10’s of thousands to the 100’s of thousands of dollars.
- As well as the initial costs of buying the franchise you have to pay in some certain circumstances very high service charges on a yearly basis.
- You are in some cases severely restricted in your business practises as regards to where and what context you can advertise and be bound to certain trading restrictions.
- Potentially can be waiting a very long time to start to see any return on your investment. Some companies say you can start earning $1000 a week straight away, what they fail to say is that you have just spent $60,000 for the privalge.
- Basically you ar buying a job. Some people may think that is a strange thing to say but in my opinion that is correct. Yes it may be your business but the franchisor is to a certain extent telling you what to do. In some contexts it could be likened to having a boss!
- Athough you may be assigned a territory so that another operator within the same franchise company can not compete with you you will still have competition from independant operators to whom you have no control over. These operators also would have spent nowhere near the amount of money in outlay for their business as you would have.
In summary and my own personal opinion.
In my own opinion these are the main pro’s and con’s of franchising. I have personally looked into franchising but decided against it go it alone. You can learn more about my decision not to HERE.
I am personally ivolved with another business modelwhich is a totally refreshing way to do business. In my opinion it involves all the pro’s of franchising apart from being assigned a territory because there is not one as it has global reach. It also and more importantly has none of the con’s. The only condition is that you must be prepared to do some work!
You can get started for under $300 and it will only cost you $97 per month to maintain. There are upgrades should you wish but in no way are they mandatory. You will get access to a product line which is already tried and tested and you will have the opportunity to earn $8000 for a single sale depending on where your positioned with the company. If this is something that may appeal to you then please click on the image below to find out more information.
Now after watching the video you may be able to see the potential of this business model and it may have given you a different option to franchising. To a certain extent it can be seen as a form of franchising as you have an established company which is seen as an authority. Also you are being given the products and services to sell as well as the training on how to sell them.
You could look at it as digital franchising. The only difference being much lower start up costs and potentially a greater earning capacity. If you have any questions or require any further information then you can contact me HERE.
I would like to personally thank you for taking the time to read this post about franchising and I wish you every success for the future.
As always I wish you well.
Pete Harris
Digital Marketer & Home Business Consultant
Six Figure Mentors Elite Member
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