Wall Street Journal
There are many benefits and drawbacks of becoming a franchisee that we will check out. When the first is looking at learning to be a franchisee they are going to have to assess and consider these positives and negatives to see if being a franchisee may be the right course in beginning their own small company.
One of the main benefits associated with being a franchisee is that it is one of the easiest and fastest ways to personal their own organization. With that comes a proven merchandise, brand reputation and set up business forms. This takes away a lot of the major business decisions that a small business operator would normally have to make. Once financing the newest venture many franchisers offer financial assistance that can by means of loans or perhaps short-term credit rating. With tightened credit standards in the past few years this has become a level bigger advantage than before.
With these positive aspects come some disadvantages that one will have to consider. Though the expense of starting the company varies with a franchise service fees starting as low as $1, 000 one must considered the primary cost to get going as it can be more costly than getting independent small business. This can have a lot of primary capital. Second of all there are ongoing royalties including 1 to 11 percent, which one would not have to pay in the event that they began their own business. The franchisee has limited freedom and will have to adhere to many criteria that they do not have control of. This can cause various frustrations especially if the franchisee thinks they can do a certain work better if they will feel the organization is less successful as it could be as a result of restrictions and standards.