Business Pundit on franchising:
The primary plus, in my opinion, is that franchising takes care of the “minutia factor” - that is all the little stuff that you don’t think about when starting a business. You need accounting software, payroll services, utilities, business quality phone systems, and all that kind of stuff. It isn’t that you couldn’t do it yourself, but it saves you a lot of time (and sometimes money too) to use the franchisor’s vendors. They already have that set up. You also have a chance to be on your own but still have someone to turn to if you fail.That said, the biggest problem with franchising is that you risk just buying yourself a job. Believe me, running a business is NOT something you want to do unless you love it. Don’t think you want to “be your own boss” and then buy a franchise that nets 70K a year. Now you have the same salary and you are working more. You are also at the mercy of the franchisor for much of what you do, which can make you feel like you have a real job again.
Scott Layer on December 1st, 2004 at 9:20 pm
I currently own a franchise and have gone just about bankrupt. I have invested more than 3 years and about $500,000 as per the business plan from the franchisor. My advice is be very careful, and only sign a franchise agreement after an attorney has approved it. If your attorney likes the contract as written fine, if he suggests changes just run for the hills. A franchise I would not recommend buying would be one called Pirtek…my experience has been terrible
Irma on September 12th, 2006 at 1:13 pm
Hello there,my husband is in the army so we move a lot. We opened a store about 1 year ago, but have to move in the next 9 months again, so I’m thinking of franchising instead of selling to keep my name. What kind of adices do you have? What all do I need to know. Pros and cons.
Thanks!
-Irma-