York Daily Record:
Question: “Franchising looks like a good way to own a small business. How can I evaluate if purchasing a franchise is right for me?” — Sheryl
Answer: Franchising is a popular way for entrepreneurs to fast-forward their small business ownership ambitions. Franchisers provide a tested and proven base structure of the business, freeing their franchisees from having to invent the operational wheel. Franchisers also provide ongoing guidance, innovations, and tested marketing materials. And new opportunities emerge on an almost daily basis. According to the International Franchise Association, IFA, 900 new concepts were launched between 2003 and 2005.
But even with its many attractive advantages, franchising has many risks and challenges that need to be considered. The biggest mistake is believing that franchises never fail. Although the failure rate is much lower than that of independent businesses, the franchisee still must have the necessary commitment and drive to make the franchise successful.
Purchasing a franchise also requires a substantial financial commitment, one that might require applying for a small business loan.
Franchise owners also have no special legal protection after they purchase the business. The Uniform Franchise Operating Circular, UFOC, protects the buyer before the sale, but it’s signed, you are legally required to abide by its rules and requirements…