Becoming a franchisee means you have extra start-up costs when you begin your business. You have to pay for the right to use the name and branding that the parent company has set up. In many cases, they also sell you their products for you to then sell to consumers.
That said, these higher costs are not without benefit. The first benefit is the supply chain. You know exactly who to buy from and they know exactly what to sell you. It’s all simple and easy, and it’s set up in advance. Other business owners may spend their entire careers trying to tweak their supply chain or make sure it keeps working, but you never have to worry about that.
Another benefit is brand recognition — and name recognition — that you get with a franchise. To consumers, you’re not some new and untested company, even if you just opened your doors last week. They already feel like they have experience with your company and that you have years or decades of experience behind you.
Finally, the franchisor is supposed to offer things like training and support for you and possibly for your employees. You never feel like you’re just out there on your own, trying to figure it out. You know who you can turn to for assistance, and they have a vested interest in helping you succeed.
At least, this is how it is supposed to work. Things don’t always go so smoothly. If you’re a franchisee who has any questions about the process or who has run into some sort of issue or dispute, be sure you understand your legal options. Knowledge is your best protection when it comes to business.
