Pros and Cons of Franchises

There are advantages to having a franchise, and also disadvantages. Well known benefits include a ready-made business concept to follow. A franchise comes with market-tested products and services and in many cases known brand names. If you are a famous franchisee, decisions about what products to sell, a way to design your store, or maybe a way to design the uniforms have already been established.

Some franchisors get training and financial planning, or a list of approved suppliers. However, while franchises have a formula, success isn't secured. Some disadvantages are heavy start-up costs still as ongoing royalty costs. To require a famous food franchise, the total amount of cash it costs to begin a franchise ranges from $1 million to and up.

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