Why you should franchise your business

As an entrepreneur, you always need to keep up with improvements to your investments. To expand your company operations, franchising should be among your priorities. By the end of 2017, 9 million people benefited as employees of at least 800,000 in United States. The growth of the business has been immense in North America in the recent past. Although it has drawbacks alongside its benefits, it has proved critical in most successful young businesses. We will explore the pros and cons for you to consider before indulging in a franchise business.

Easy Capital

Perhaps the most lucrative attraction to this business is its offer to obtain capital for expansion. Even before you get enough to buy outlets in your chain; you may still have enough funds to develop a structural network. Your own funds will be safe as you may never need to use it. You will not be desperate to seek financers such as banks because you will have a safe backing. Your company will benefit from the collective buying power of the parent company to buy goods in bulk that you may never have accessed. The overall cost of operation becomes less than if you had ran it independently.

You will get the assistance you need to begin yourdream business as well as to run it. The turnkey operations help you acquire equipment, supplies, and knowledge. These are what you need in the crucial first stages of setting up a business. The knowledge for example, is especially vital to build your management and marketing skills. You will capitalize on the huge marketing campaigns of the parent company.

Exposure to Talent

Your experience with a huge multi-national will expose to you great talent. They will boost your management skills and improve your access to consumers in different locations. As an independent small unexposed company, you cannot be accessible to many professionals experienced in marketing. However, in a big company, you interact with successful personnel that have made great achievements. These highly qualified and competitive people will use your business as part of an experiment rather than working for a salary. As a result, you will learn a lot from them without having to employ someone to work for you.

No Fear of Growth Risk

The high financial returns you get from franchising completely eliminate your risk. Your growth is assured as it relies on the reputation of an already successful business. For example, instead of expanding your business by adding outlets when working independently; you only spend little funds in adding locations.

With a good business model, you will be able to earn steady royalties from the additional outlets. These royalties cannot be compared to returns you would have made working alone without the help of a parent company.


Like any other business you should expect some cons with this business. For example, the parent company may impose rules that limit your freedom and control of business. For you to benefit from their support of huge finances you will have to adhere to their guidelines that may be excruciating. Some of the rules may focus on the pricing of products, the location of the business premises, hours of operation, and layout of your office space. These rules are meant to create uniformity so that it does not seem different to the customers.

Other disadvantages of this business are the ongoing costs besides the main franchise fee. For example, most parent companies charge monthly royalty fees as a percentage of the business revenue. Other costs such advertising may be including. Besides, buying into established multi-nationals may be very expensive. Any additional costs prove very strenuous.